Audio By Carbonatix
An economist at the University of Ghana Business School (UGBS) says the Bank of Ghana (BoG) should be given the chance to explain in detail the substantial increment in its expenditure in the wake of its GH¢60.8bn loss.
According to Dr Patrick Assuming, although it is understandable that prices of goods and services have shot up over the years, and as a result could have informed the huge loss, the BoG is in a better position to offer explanations.
"If you look over the last 12 months, especially if you compare 2022 to 2021, we know that there's a significant increment in the prices of almost everything, and in particular we know fuel costs went up.
"But I guess that the Bank of Ghana is in a better position to come and explain why those really astronomical increases.
"Although the optics do not look good, "the different way of looking at it is that - what he presented is the increment between 2021 and 2022. It would be good to see from 2020 to 2021, what was the increment?
"If that has been the historical level of increment, then I guess we'll probably live with that. But on the face of it, increasing expenditure lines over 200 or 100 per cent does not look good," he said.
He told JoyNews' Benjamin Akakpo that "it is important for the Bank of Ghana to explain why those things are there and why we see that substantial increment."
Dr Assuming added that although the loss as indicated is substantial, the increment in the outfit's expenditure is not necessarily the causative factor.
Meanwhile, another Finance, Professor Lord Mensah has attributed the loss to BoG's possible involvement in some irregularities and the lack of transparency in its dealings.
"I have always been calling for the head of the Bank of Ghana Governor, to some extent, looking at even the board because they seem to be too opaque in their dealings.
"From where I sit, publishing your balance sheet and then looking at these numbers coming up, it tells you so many things. There are so many attributes to those increments.
"They're abusing the operational autonomy that they have," he said on the JoyNews' AM Show.
The BoG's loss which amounts to GH¢60.8bn is said to have come about per the following components;
Non Marketable Instruments - GH¢32.3bn
Marketable Instruments - GH¢16.1bn
COCOBOD - GH¢4.7bn
Price and Exchange rate valuation - GH¢5.2bn
Interest expense on the cost of monetary policy -GH¢3.3bn.
Amongst these losses, it has also been reported that the BoG spent $250 million on its new Head office.
These are figures revealed by the BoG itself.
Meanwhile, the Minority caucus in parliament has expressed outrage at the figures and has, therefore, called for the immediate resignation of the Governor, Ernest Addison for causing such a loss.
But Economist, Dr Patrick Assuming said the BoG should be given the opportunity to explain the details regarding the losses.
He would not call for the resignation of the governor.
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