NDC Exposes Bawumia For Chairing Illegal Printing Of Money By Bank of Ghana

According to the largest opposition party in Ghana, the  illegal printing of money by the Bank of Ghana, which was supervised by the economic mis-management team chaired by Alhaji Dr Bawunia, caused the hyper-inflation of 54.1% in 2022.

"For example, the Akufo-Addo/ Bawumia government has admitted in Paragraph 2 of the MEFP sent to IMF that the illegal

 printing of money by the Bank of Ghana, which was supervised by the economic mis-management team chaired  by Alhaji Dr Bawunia, caused the hyper-inflation of 54.1% in 2022.

"Consistent with the dishonesty and non-transparency on the part of the government, they vehemently denied when the Minority in Parliament informed the people of Ghana about the then ongoing printing of money by the Bank of Ghana and the government.

"Thanks to the IMF, the government has backed down from its spirited denials and has admitted that indeed Bank of Ghana printed money to finance its over-bloated government expenditures in 2022," the NDC made this foregoing remarks in its public forum held on Wednesday August 31, 2023 to expose financial mess caused by the Centra bank in the first of history in Ghana.

Addressing the gathering, the Minority Leader in Parliament, Dr Cassiel Ato Baah Forson pointed that the paragraph 8 of the IMF Staff Report gives further detail that Ghana’s central bank, not only illegally but also excessively, printed over GH¢45 billion,representing 7.2% 

of GDP in 2022 alone, and GH¢35 billion in 2021.

According to him, this is another unenviable first in the history of Ghana, pointing out that, in 2016, on the watch of President John Mahama and notwithstanding that year’s 

general elections, the NDC government financed the entire budget without any support from the Bank of Ghana.

He mentioned that the  Bank of Ghana is now a crime scene and the managers of the economy led by Mr. Strategist aided and abetted this economic crime.

Again, he noted that the Governor of the Bank of Ghana and his deputies are not without blame.

He indicated that this singular crime by the Bank of Ghana and government is responsible for pushing an additional 850,000 Ghanaians from poor to poorer and into extreme poverty, saying that according to the latest World Bank report.

He further pointed out that the key members of the economic mis-management team that superintended  this economic crime are Dr. Mahamudu Bawumia, aka “Mr. Strategist” (Exxxxcuse me!!), Ken Ofori-Atta aka “One Problem, One Bond”6 P,  Governor Ernest Addison, aka “The Printer”and his two deputy governors at the Bank of Ghana.

According to Dr Forson, these five officials clearly constitute an economic mismanagement team, adding that this is borne out of the results of their time in office.

On the watch of this economic mis-management team, he stressed that "our public debt increased to about GH¢600 billion by end 2022 from the GH¢120 billion inherited, an increase of about  400%.

Following these high debt levels, he pointed out Ghana defaulted in the repayment of both our domestic and foreign debts, another 

unenviable first time inGhana’shistory. 

"Again, for the first time in the history of our dear country, and on the watch of the economic mismanagement team, 

pensioners (senior citizens) had to picket at the Ministry of Finance to demand the payment of their interest and principal.

"Of course, we are all aware of how rating agencies downgraded Ghana’s credit worthiness to “D”, in other 

words “super-junky," he noted.

He pointed out that "It is this unsustainable debt levels which resulted in the painful domestic debt default.

Today, he indicated that Ghana’s financial sector has virtually collapsed, with all the 23 banks in the country recording massive impairment losses of over GH¢18 billion in 2022.

According to the young economic guru, this  is excluding the impairment losses of the non-bank financial institutions and the insurance companies.

He said the cost of the economic mis-management by this government is unprecedented, adding that this domestic debt restructuring has not only affected the commercial banks but has also affected the Bank of Ghana negatively.

He asserted that the Bank of Ghana is in a major financial distress and bankrupt; and requires urgent attention.

In 2022, he said under the governorship of Dr Addison and his deputies, the Bank of Ghana recorded a colossal loss of over GH¢60.8 billion and negative equity of over GH¢55.1 

billion.

"That explains why Paragraph 18 of the Memorandum of Economic and Financial Policy (MEFP)stated that: “The 

Government and the BoG will assess the impact of the debt restructuring on the BoG’s balance sheet and develop plans 

for its recapitalisation.

"In its present form, the Bank of Ghana exists merely in name under the leadership of Governor Addison and his deputies; 

we are talking about a central bank which has been so mismanaged that it has recorded an unprecedented loss. 

"As if that mismanagement was not bad enough, its officials have the sheer audacity and temerity to look Ghanaians in the face

and tell us that the Bank was not set up to make profit," he further explained.

"If I may ask, ladies and gentlemen, was the Bank of Ghana set up to make losses?Ladies and Gentlemen, you will recall that the governor of the Bank of Ghana in justifying the outrageously expensive new Bank of Ghana head office of over $250 million, stated 

that he commenced the construction with profit from 2019 to 2021. 

"If I may ask again, now that the bank has made an unprecedented loss of GHS 60.8 billion ($6bn) with a negative equity of GHS 55.1 billion, how are they going to

continue the construction of their so-called earthquake resistant new Bank of Ghana head office with these losses?

"Now that the Bank of Ghana is claiming that the building is 41% complete, are they going to fund the remaining 59% from their losses or Addison the Printer will print money 

again?

 'For those of you who may be asking “how did the Bank of Ghana get into this mess”?, the answer is simple. 

He noted that the actions of Governor Addison and his two deputies to illegally and excessively print money to finance government’s over-bloated expenditures and reckless borrowing from the Minister of Finance.

According to him, all of these were under the direct supervision of Alhaji Bawumia, the Chairman of the economic mismanagement 

team. 

He said they are responsible for causing this mess and cannot escape culpability in this matter.

"Let me also state that another cardinal sin of the Governor of the Central Bank and his deputies is their decision to write off government debt on the blind side of parliament. The Governor and his deputies are not a law unto themselves, they cannot exercise powers that they do not have.

He asserted these personalities cannot therefore arrogate to themselves the power to unilaterally write off government debt without recourse to the Parliament of Ghana, in clear violation of section 53 of the Public Financial Management Act, 2016 (Act 921).