Disregard the ugly noises on the alleged wrong doing by Bank of Ghana concerning matters on the cash of GHC22.04Billion for public good and the Loss of Ghc60.8Billion (Ghc55.1 Billion as Loss Absorber that Facilitated IMF Bailout for Price Stability also for Public Group plus Ghc5.7billion as Loss due to Exchange Movement.
MAJOR MOHAMMED BOGOBIRI (RTD)
Fellow Patriotic Citizens, I hope this mail will reach, you in your good health situation and pleasing mode.
Before I expatiate, please join me to say well done (ayeko) to the IGP and his Police personnel and the participants in the demo for the peaceful or incident free nature of the demonstration as at 1630hrs, this is the time of release of this submission for publication.
I listened to some of the demonstrators against the Governor of Bank of Ghana and found that either lack of understanding on economic matters because problem is the high cost is due to cost pull or push inflation due to the foreign exchange problem in 2022 and our penchant for foreign goods/hoarding of foreign currency both of which were/are not the work of BOG, but the external factors of COVID-19 pandemic aggravated by the Russia-Ukraine War affecting Supply or causing Supply shocks, then mismanagement by previous and current governments and the attitude of all of us. Considering Nkrumah’s Ghana still spending huge amount of dollars etc for importation of tomatoes from Burkina Faso and onion from Niger, we are own enemies.
Pardon me to drive my point home, on the cheats or greedy nature of all of us in the Country, with an example of a caterer or a Restaurant at very nice brick and mortar facilities with Air Condition, fans, sitting chairs etc by name Tasty Queen around Star Junction near Opoku Ware SHS Kumasi is selling rice meals at prices between GHC12 and GHC20.00 in take way containers including VAT component in their meal prices (hence tax compliance) but her compatriots sell rice meal on table tops or kiosks and the meal which is sold at GHC15.00 at Tasty Queen is sold at GHC30.00 with no VAT inclusive by these charlatans. So, Hon Mr Sam George must be educated as such and stop the weak comparisons with other countries.
The Governor and his two Deputies did a very excellent job with the matters concerning the loss of the GHC60.8Billion from the Balance Sheet by Bank of Ghana (BOG) in the Domestic Debt Restructuring Programme in 2022 to make Ghana’s debt to be reduced from 110% unsustainable level to 55% which is about a sustainable debt which among others facilitated the IMF Bailout as recommended by ex-President Mahama by Hon MPs and others or on as usual of politicians globally in their trademark of falsehood or propaganda on the impairment of GHC60.8Billion and the wrong comparing the situation before COVID-19 and the situation after COVID-19.
Folks, as a security operator and a student of risk management, I can confidently say that some of the demonstrators want to precipitate or motivate for a Military Coup. Let me promise them that by Ecclesiastes1.9 that is ‘what has happened before is likely to happen again, so Ghana, as a candidate for the IMF one more time is a possible candidate for a Military Coup and they will surely get it but they will be the first victims of a Coup. At least, JDM’s second coming bid will be dead. General Acheampong did that to the three Majors who staged the coup in 1972.
Papa JJ dealt drastically with the traitors who overthrew their brother namely President Dr Liman on 31 December 1981 and he and his wife brought the NDC, you can complete the story. So, we all must believe in the rule of the law as proclaimed by the Chairman of the NDC (General Mosquito) on Joy News last night. Hence, as part of the fixing Ghana Agenda, this submission is to inform you the truth as per the Press releases by BOG in public domain by Courtesy Google I am able to access.
These ample evidence that Bank of Governor has demo Probity, Transparency and Accountability the dogma of the 1992 Constitution. The Governor demo Accountability to the public by meeting the Price personally Media or through some his staff and the Communication unit of the BOG.
Folks, let me be honest by saying that I am one of the persons who lost their investments with fund Managers during the financial crisis in 2017/2018, I nearly committed suicide but first with Allah and then by God (the value is the same) through the House of Abraham (Straightway International Church).
Folks, I survived the storm and managed to get my daughter Rahinatu to complete the law school this year (the call to the Bar i April 2023) under very tough financial situation. Everything is by God. God saw Presidential Candidate Nana Addo as the better devil in both the election in 2016 and 2020 and made him our President, so we need to see ‘Devil’ President Nana Addo through for any good job till the Second Northern Battle in 2024 between Ex-President Mahama and VP Dr Bawumia as reportedly prophesized by the Speaker of Parliament when he was in Yendi.
Hmm much of the blame could be due to the very poor supervision of Bank of Ghana before 2017, this is a fact and the poor work of Security Exchange Commission in 2017/2018, under the current regime due to the premature suspension of the operations of some Fund Managers who were doing well especially two of my fund Managers especially Legacy Fund Management and others for over six months in 2018 and restoring their operations later after error in the suspension which resulted in what could be envisaged as the collapse of the Financial Companies because like CCOBOD or Ghana Government there were involved in what could be termed as robbing Peter to Paul syndrome. Hence an interruption of the activities of Peter and Paul destabilizes the system.
Folks, I am really languishing but that should not make me to be dishonest with the truth with matters on the loss of GHC60Billon, the cash of GHC22.04 Billion etc.
This paper will apply logic or common sense to explain that per the Press release, I can say that constitutionally and legally, the Governor of Bank of Ghana did nothing wrong though the demo is unwarranted and illogical since BOG acted within the Constitution and laws of Ghana as explained below, the demo has manifested that Ghana’s Democracy has come to stay and is unparalleled in the sub-region.
Demo are good because they serve as a vehicle for people to share their problems or frustrations or pressure just like the lady who expressed the problem faced by patients with kidney problem (Dialysis) and another person managed to pick a husband. Demo therefore are not all that bad. A study of the Demo tells that it is NDC campaign hence elements of dishonesty and hypocrisy suspected.
Our Nation is therefore on the crossroad, both social fabric/national cohesion are under threat. Firstly, One of the NPP Flag bearer hopefuls is causing tribal division tendencies or sentiments within his party simply because he is a rich man and so others members of his party have no right to compete with him in his Party primaries, he needs to be told that what is written by God is written and Ghana is Unitary Democratic State and not Federal One.
He must be told that his utterances are in breach of section (5) of Article 35 of the 1992 Constitution on Political objective especially the section on prohibition of discrimination and prejudice on the grounds of place of origin, ethnic origin etc. It is also against section (6) (a) and (6) (b) of Article 35 on foster of loyalty to Ghana as unitary State and Regional Balance respectively.
Thanks to God for the means for him to share his wealth with the poor, so let us commend him for this kind gesture. He should pray that this would go a long way to portray him as a possible candidate after the second coming of ex-President Mahama or VP Dr Bawumia as President of Ghana. So, whether he like it or not 2024 is going to be the year of the second Northern Battle between JDM and BMW (Esau and Jacob in the womb of Rebecca as in Genesis 25 in the Bible) an election Battle by EC, whoever wins the most votes in the North (the heart of Isaac) will be the winner because of the rest of Ghana will vote in the same line. The first Northern Battle was in 1970 in the Second Republic that saw the disqualification and replacement of CK Tedam as MP for Chiana Paga by CK Tedam.
A political novice Miss CK Tedam (Catherine Katuni hence, a female Tedam) replaced the veteran Mr CK Tedam after winning the first bye-election in the history of Ghana dubbed in the Political history of Ghana as the Northern Battle to become the first and only woman on the ticket of the Progress Party or the UP tradition in Parliament in the Second Republic. Catherine joined the first woman namely Lydia Akandupo of Builsa Constituency in the Parliament of the Second Republic on the ticket f NAL of KA Gebedeman party of CPP root.
The 3 months maternity leave law with pay was sponsored by this two great female MPs (Catherine and Lydia both Teachers) and was enacted by the Parliament of Second Republic.
The late Teacher Lydia was a well-established Politician with CPP root later became a Magistrate in the General Akyeampong’s regime effective 1972 and she became very impartial in her judicial work in Tamale and Kumasi. A lesson to both NPP and NDC and members of the Judiciary and maybe the EC.
Fellow Citizens, if care is not taken, the poor leadership and the incompetency of Hon Cassel Atto Forson as the Minority Leader may cause a very big problem for Ghana beside causing crisis or blunder in the financial sector because “sika empe dede” in Twi that is the financial sector is very sensitive to public sentiments, hence it does not need noise. His leadership style is against the norms of democracy which means Government for the people and government by the People because sovereignty resides with the people whom Government by definition is made of three lateral Arms of Government namely the Legislature, the Judiciary and the Executive Arms of Government and then the Constitutional Bodies (Bank of Ghana, EC, Ghana Police, Armed Forces, CHRAJ, NCCE, NDPC etc) collectively as the Fourth Arm of Government with independent in decision making as enshrined in the 1992 Constitution of Ghana.
Folks, multitude demo on public space or on the street led by a National Minority Leader of Parliament instead of employing governance tools as provided by the principle of separation of powers with the associated checks and balances, either by a walk out in Parliament because as the saying goes Minority will have their say but the majority will have their way is the spirit or pillar for Democracy, so the term majority carries the day in the three arms of Government namely Parliament, Executive and at the Supreme Court.
The Nation’s motto is Freedom and Justice Section (1) of Article 35 on Political Objective state that Ghana shall be democratic State to the realization of Freedom and Justice hence we have automatically as citizens signed to a definite code and conduct. So our Leaders must be seen projecting true democratic values.
As institution that is for the representation of the citizens, member of Parliament have a very honorable role hence must lead by good examples to promote freedom and justice, open government principles including checking or scrutiny of the fiscal policy or the plans and budget of the Executive and the Constitutional Bodies (hence Parliament shares or is to be blamed for the woes of the citizens during the limited Registration Exercise for not ensuring registration at pooling areas, it is envisaged that there was understanding between the parties due to the Nation’s finances others MPs have a question to answer ). MP is a law maker hence MP must be seen applying and obeying the Constitution and the laws enacted by him or her.
A minority Leader worth his salt must demo leadership and look for facts and speak on the facts and not part of rumor mongering or propaganda (misinformation or falsehood) machinery. He must not be seen lamenting on the street or sharing the gutter with the gullible persons who has no option to get the facts or right thing done but to express her anger on the street. For example, members of Parliament have the power to ensure the Executive through both the Minister of Finance or and Health to get the hospitals in Ghana to charge very low price for dialysis or ensure it is within the National Insurance cover.
So a good leader in Parliament or righteous person in Parliament hence Hon MP must demo good leadership of code and conduct in dealing with constitutional or legal question for his followers or the people to emulate and not going to the jungle or the Builsa way (emotional or physical fight by courtesy of one of my old teachers at Navrongo Secondary School)
Good governance tools opened to a MP as the representation of the citizen must be used on the premises/Floor of Parliament or use of the Judiciary as democratic tools of governance to deal with national issues by people who are to be called honorable. Failing, to take note of the principles of separations powers with the associated checks and balances in government will be an indicative of incompetency, level of dishonesty and hypocrisy of some of our MPs.
It may also demo to some extend laziness or lack of logical mindset (common sense) on the matters involved by the demonstrators because if a JHS pupil checks our laws on the fiscal policy which are many and thus conflicting laws on fiscal policy, he will be able to tell that in force majeure situation to be stated below, the Governor of Bank of Ghana is to act with alacrity and he only needs to be guided by (a). Article 183 of the 1992 Constitution (BOG primary and secondary mandate on currency or price stability and support to the economy respectively for public good through the government of the day which has the mandate of the people.
Please, the next law relevant to BOG is at section 19 of Bank of Ghana Act 612 of 2002 at page 12 on Emergency Powers of the Governor which reads “where there is an internal, disorder, external exigencies, national disaster or critical financial or economic crisis or other exigencies requiring immediate action, the governor may after giving notice to the Minister exercise the powers of board and take necessary action prevail. This law has been made redundant.
The technical knockout law against the demo or the ugly noises is that (c) Regardless of all laws before 2018, in event of situation of a disaster or force majeure, hence on the issues on front burner involving Bank of Ghana, the Minister of Finance is clothed with the executive power to suspend all laws on the Fiscal Policy, that is the letter and spirit of the Fiscal Responsibility Law 2018 (Act 982) enacted by Parliament. Hence, if challenged, I am sure the judgment of the Supreme Court on this political question will be unanimous, with no option afforded by this law for anyone to dream of dissenting.
The Fiscal Responsibility Act 2018 (Act 982) law enacted by Hon Atto Forson and other members of Parliament, has made or makes the Bank of Ghana Act 2016 Act 918 as irrelevant to the Governor, hence, Mr Forson and his cohorts will agree with the Governor that Act 918 of 2016 and Act 612 of 2002 are of no use in event of disaster or emergency situation which must be declared by the Minister and follow through with the amount required.
This was duly done by the Minister and duly approved by Parliament. If the Minority walked out during the suspension etc is immaterial once the Speaker of Parliament rules in favor of the motion etc. So ignore the NDC political tainted demo, instead of spending time to organize people to register they are on a wasteful venture and to come later and speak of stolen verdict with no single pink sheet to support their claim. JDM must reshuffle Atto etc.
Please take time to read the Bank of Ghana Act 2016 (Act 918) and you will see that Act 918 of 2016, of 16 pages with 27 sections with 19 amendments of Act 612 of 2002 and 8 insertions and you will conclude that Act 918 of 2016 is inadequate law because aside speaking on what should be done during normal times, it woefully failed to say anything on event of Emergency.
It is envisaged that it is because Act 918 of 2016, declined to amend the Emergency Powers of the Governor as at section 19 of the Bank of Ghana Act 612 of 2002, so Act 982 of 2018 which later came with a better provision to replace any other provisions on fiscal policy which the Governor of Bank of Ghana has to comply with. Act 982 of 2018, in event of disaster etc requires the Minister to suspend and simply get Parliament to validate or confirm the suspension within 30 days and is not an issue of request for authorization but just for validation of any sins of the Minister of Finance when faced with war or disaster or force majeure situation.
A JHS pupil can therefore easily tell that the Governor of Bank of Ghana did nothing wrong. This will tell the need to bring Hon Haruna Iddrisu a legal brain and fellow old boy of Navrongo Secondary where logic or common sense is taught. So he has been applying common sense in his life.
Bank of Ghana is a Constitutional body any change of its function etc must be by a Constitutional Amendment Bill will go which must go through the procedure as at to become Constitution of Ghana (Amendment) Act with stated year and the Act number —–and not by an Act of Parliament which establishes only Statutory Bodies like NHIA, NIB, ADB GBC etc.
Bank of Ghana as a Constitutional body relies he same three pillars namely Openness or Transparency and Accountability and Independence co-equal to Parliament, and the Executive. BOG fulfills these three pillars by Press Release, meeting with the public. So let us study the issues on the GHC60.8 Billion etc.
Complain number one- Loss of GHC60.8Billion in DDEP for IMF Bailout
The Bank made it clear that part of her Balance Sheet amounting to about GHC55Billion was lost as result of the financial haircut or support for the Domestic Debt Exchange Program and this facilitated for the IMF’s early bailout hence a price for public good and that the Monetary Policy has not been disturbed.
The Bank disclosed that due to marketable stocks of government and non-marketable instrument of government held in the books of Bank of Ghana which were built over the past years plus Bank of Ghana’s exposure to Bill s of COCOBOD, also built over the years, so, as the result of the Domestic Debt restructuring, Bank of Ghana had to pay the price for Public good when the Bank served as the loss or shock absorber of the entire debt exchange program. This was so, in order to meet the threshold for the approval of the IMF bailout program, So BOG took 50% haircut on a total principle which stood at GHC64.5 Billion, at the time of the Domestic Debt exchange based on the cedi and dollar exchange then.
Bank of Ghana explained that it had a new instrument with extended tenor at significantly reduced coupon rate. The non-marketable amounted to GHC32.3 Billion, whilst the marketable instruments was GHC16 Billion with loss from COCOBOD amounted to GHC4.7 Billion. According to the Bank, the three Domestic Debt Exchange Program items of non-marketable, marketable and bill of COCOBOD amounted to GHC53.1 Billion out of the GHC60.Billion for 2022 and price and exchange rate valuation effect was about GHC6.9 Billion of the total loss. Finally, on posting to the General Reserve Account, resulted in an overall negative equity of GHC55.1 Billion.
Bank of Ghana made it clear that the situation did not render the inability to meet its core mandate of price stability and not affect its Constitutional mandate. The Governor indicated that the Bank was fully aware that a sustained negative equity could undermine the Bank’s Credibility, consequently, structures have been put in place to ensure the BOG remains policy solvent and capable of delivering on its primary mandate.
The Bank has furthermore stated that it has sufficient funds to cover cost and build up long term capital reserves without looking to the Government for capital injection and thus undermining the BOG’s independence and credibility of monetary policy and also affect public confidence in the Central Bank’s operations.
For historical records and your consumption, It is important to state some Central Banks globally also had fair share of the negative equity. These include Israel, Germany, Czech Republic, but were able to maintain price and financial stability. Negative Equity means a Central Bank‘s liabilities exceeds its Assets.
Report from the Financial Times news dated 25 July 2023 disclosed that UK Government faced 150 Billion Pounds Bill to cover Bank of England’s losses. Singapore was reportedly posted a loss of$30.8 billion for financial year ending March 2023.
It is therefore odd and unacceptable that members of Parliaments with their leader as a former Director of Bank of Ghana and therefore he should be one of the MPs or one of the persons in the Nation who should speak against foolhardiness on financial matters of Bank of Ghana is rather acting against the interest Ghana which is emerging from crisis occasioned by both external factors of the repercussion of the COVID-19 pandemic
Complain number two- Alleged printing of new money of GHC22Billion
Minority Leader alleged that BOG printed fresh or new money amounting GHC22 Billion between June and January and June 2022 without knowledge of Parliament.
Bank of Ghana claimed that it was net claim of Government and not new current to government hence falsehood by Hon Forson. According to BOG, GHC22.04 Billon as in the midyear review budget was made of stocks and bonds sold by banks as per repurchase agreement am, as well as GHC6.2 Billion as Ghana allocation of SDR from IMF.
Lastly, the drawdown of government balances with BOG amounting to GHCh1.6 billion from Commercial Banks and the residual amount of GHC11.4 billion include in the 22.04 billion was an overdrawn balance on the government treasury main account held by BOG as on the reporting date which is normal matter from time to time as the auction system has been designed to ensure same day settlement of maturities and interest payments once the auction is concluded which is part of the auction system as part of the development of the local bond local currency market so is done on rolling and continuous basis Outstanding balance has to be cleared by the end of the year and clearing is regularly done. Some of the details were proclaimed under the signature of Mrs Sandra Thompson, Secretary to the Bank of Ghana dated 26 July 2023
Complain number three- Justification of GHC40 Billion to Government
BOG justify decision to print 40billion to government under Fiscal Responsibility Law 2018 (Act982) note Bank of Ghana Act 2016 (Act 918) fiscal policy aspect was made redundant by Parliament in event of disaster, that there was no option due to the Capital market was closed to Ghana and in 2022, down grading of the Credit Rate of Ghana by International Analyst, then the showdown of the e-levy in Parliament, so the Minister of Finance invoked the Fiscal Responsibility Act 2018 (Act 982), this was suspended by Parliament in 2022 and the Bank acted in accordance to power of emergency granted to the Minister duly approved by Parliament.
The Bank of Ghana had to aid government to avert a disorderly default of both servicing for domestic and external debt including financing critical imports to keep the economy on the stable path.
Bank of Ghana New Head Office
Bank of Ghana also gave very good reasons on why the construction for the fit for purpose Headquarters, as due to the current location of the Main Offices as prone to earthquake and for other technical reasons. It also explained that the source of the fund being used for the work came from huge profit made by the Bank, which ordinary, the Bank should have handed over to the Shareholder, the Government but the Governing Board with the approval of the 100% shareholder decided to use the profit for the construction of the fit for purpose Headquarters. Additional profits were made in subsequent years and was made clear that the Initial work started in 2019 with dedicated budget line with funds before the crisis that occasioned the economic depression.
The construction is about 50 % complete and it is providing employment to artisans/ construction elements and suppliers of construction inputs and meals and security personnel and it is going to house the subunits of the Bank and some International Institutions from which it will earn revenue in dollars.
It should also be noted that it will improve on the Landscape of Accra and thus enhance the tourist potential of Ghana with associated revenue and employment generations .It will be easily accessible hence with reduction of turnaround, hence save of fuel cost, Lastly, the old Site could be sold out or rented out to Companies for revenue hence the Project is cost effective. This submission from the comfort of my bedroom is based on the Press Releases etc of BOG, in the public domain thus a clear authentication of the Bank’s openness or Transparency and accountability to the people, the very important pillars of the Bank as a Constitutional Body, which works for public good and accountable to the people
Governor of BOG Remarks and Confirmation by IMF
That Structure and action being done to return to positive equity bank and Bank remains positive solvent and discharge mandate effectively.
The IMF confirmed the loss of the GHC60.8 Billion was caused by the Domestic Debt Restructuring Program with GHC55.1 Billion for reduction of the Public Debt to sustainable a condition precedent for approval by the IMF Board nd the balance due to exchange movement or problem.
Folks, there is the urgent need for Cooperation among stakeholders citizens, MPs, the Executive, Financial institutions, the government , business house, for a strong and resilient economy.