Bank Of Ghana Defends US$250 Million Transfer To UBA

Dr. Abdul Nashir Issahaku, Governor of the Central Bank of Ghana (BoG) has spoken against claims by Former Deputy BoG Governor and Running mate to the 2016 Flagbearer of the NPP, Dr. Mahamudu Bawumia that the Finance Ministry’s transfer of the 250 million dollars of the 1 billion dollar Eurobond proceeds to a private account is a breach of section (53) of the BoG Act 612.

Dr Abdul-Nashiru Issahaku – Bank of Ghana Governor
Dr Abdul-Nashiru Issahaku – Bank of Ghana Governor

Defending the Finance Ministry, the BOG governor insisted that the Finance Ministry did not flout the rules, stressing that government took the Cedi equivalent of the amount hence, cannot be said to be in contravention of the BoG law.

Dr Abdul-Nashiru Issahaku – Bank of Ghana Governor
Dr Abdul-Nashiru Issahaku – Bank of Ghana Governor

“I think from our stand point here, all government foreign exchange has to be in the custody of the Central Bank and when government need their money, they take the equivalent in cedis. The 250 million dollars that was taken out of here, they did not take foreign exchange dollars, the dollars were surrendered to the Central Bank, it was sold to the Central Bank and the government took the equivalent of that in cedis to deposit it elsewhere. So by the Bank of Ghana act, we have been in compliance,” he said.

It could be recall that Dr. Bawumia when addressing students of the Accra Polytechnic weeks ago accused government of flouting the BOG Act by diverting about $250 million of the total proceeds from the nation’s $1 billion Eurobond it issued in 2015 to a private account at the United Bank of Africa (UBA).

He noted that the Minister of Finance, Seth Tekper, flouted the BoG Act when he transferred 250 million dollars belonging to the Ghana Infrastructure Investment Fund (GIIF) from the 1 billion dollar Eurobond it issued in 2015, into an account with the United Bank for Africa (UBA).

Dr Bawumia indicated that the Ministry of Finance’s action was a bad precedence in the management of the economy and called for a serious probe into the matter to unravel the intent behind it.


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