Instead of committing suicide, you’re still at post – A Plus slams BoG’s leadership over GH¢60bn loss

Kwame Asare Bediako, popularly known as A Plus, musician and political activist, has called for the resignation of the leadership of the Bank of Ghana (BoG) in the wake of GH¢60 billion financial loss incurred in 2022.

Expressing outrage at what he claimed was mishandling of public funds, A Plus likened the BoG leadership to the heads of banks that were collapsed due to the banking sector cleanup years ago.

In a Facebook post on August 9, 2023, wrote: “Some people mismanaged banks so you collapsed their banks and brought charges against them, but you have lost 60 billion of poor taxpayers’ money and you are still at post instead of c@m!ting su!c!de. Kwasea! If BoG can’t manage money, how do you expect Kwabena Duffour to be able to do that?”

Background

The Bank of Ghana incurred a significant loss in 2022 largely as a result of the DDEP, its 2022 Annual Report, and Financial Statement, released late last month noted.

According to the report, the central bank’s holdings of government debt were restructured whereas non-marketable holdings of Government of Ghana instruments including long-term stocks, a Covid-19 Bond, and overdrafts were subjected to a 50 percent haircut.

Bank of Ghana’s other claims (holdings of marketable instruments) were exchanged under similar terms as other financial institutions under the DDEP.

This led to an impairment of GH¢48.40 billion in 2022.

At the same time, the Central Bank incurred revaluation losses on its foreign assets and liabilities due to exchange rate depreciation. The impairments and revaluation losses led to a negative equity position of GH¢55.12 billion for 2022.

The report also stated that despite a healthy trade surplus, the balance of payments recorded a deficit of US$3.64 billion on account of significant net outflows in the capital and financial account.

This led to a drawdown of US$3.46 billion in Gross International Reserves from US$9.70 billion at end-December 2021 to US$6.24 billion at end-December 2022, providing 2.7 months of import cover.

The significant drawdown in reserves triggered immense currency pressures and the reduction in the Common Equity Tier 1 capital ratio to 5.5 percent, from 6.5 percent, and an increase in the maximum Tier 2 capital ratio to 3.0 percent, from 2.0 percent of total risk-weighted assets.

AM/SARA