Dr. Addison, Governor of the Bank of Ghana in 2020, election year, advanced GH¢10 billion to the Akufo-Addo-Bawumia administration.
In 2021, Governor Dr. Addison gave the Akufo-Addo-Bawumia administration, close to GH¢35 billion in loans and overdrafts contrary to Section 30 of the Bank of Ghana Act 612 as amended by the Bank of Ghana(Amendment) Act, 2016, Act 918.
Section 30(2) of Act 612 as amended provides that “The total loans, advances, purchases of treasury bills and other securities made under subsection (1) shall not at any time EXCEED five percent of the total revenue of the previous fiscal year.”
In 2022, the Governor, Dr. Addison again gave the Akufo-Addo-Bawumia administration, close to GH¢45 billion ($3.5 billion).
Bloomberg has even reported this.
The decision to give these loans to the Akufo-Addo-Bawumia administration is simply because, in 2022, the Eurobond market could not be accessed due to the downgrade by the Credit rating agencies in Feb 2022. So Governor Addison decided to turn the BOG into Akufo-Addo’s Eurobond market.
Remember that from 2017 to 2021, the Akufo-Addo-Bawumia administration consistently did $2 billion in bonds in order to give artificial stability to the Ghana Cedi until the Eurobond market was shut in 2022.
So far in 6yrs, they have done $11 billion in eurobonds plus the $2.25 billion from Franklin Templeton.
We are dealing with over GH¢80 billion to this reckless Akufo Addo BAWUMIA administration.
If the government is facing financing constraints, the best solution is for it to adjust its budget accordingly.
Not for Governor Addison to open the tap and allow GH¢80 billion to this reckless and corrupt administration.
Per the January 2023 BOG Report, total money in circulation increased by 51%. Do you now see the source of the 54% inflation rate?
Because traditionally, Ghanaians have a higher Marginal Propensity to Consume to Marginal Propensity to Save.
We consume more than to save.
This is how Akufo-Addo and Bawumia are managing the economy.
Governor Addison has consistently breached the BOG Act as amended. The breaches of the Act constitute criminal offenses with the possibility of serving two years in prison.
The level of impunity from the Governor is bizarre. Such conduct can only come from people who feel they control the instruments of accountability.
Governor Dr Wampah and Nashiru never attempted this level of recklessness. They have self-respect.
Governor Dr Addison, Deputies, Elsie and Maxwell together with the Governing Board of the Bank of Ghana should be worried about this development.
For Ken Ofori Atta, knowing the consequences for violating the Fiscal Responsibility Act, he ensured that Parliament relaxed the Act to enable him do the 15% budget deficit for the year ending 2020.
The BOG Act is still operational and must be respected by Governor Addison without more.
If Nana Addo and Dr BAWUMIA insist that he should ‘print’ more money for their reckless expenses, at best, Addison should have tendered in his resignation at that point, to register his protest.
How do you destroy an economy through such recklessness? What is the use of the independence of the BOG.
Subsection 7 of Section 30 of Act 612 as amended by Act 918 stipulates that Act 918 that he, Governor Addison should have written to both Parliament and the Minister when the breach was about to occur.
He has failed or neglected to do this. The violations are so willful and reckless.
It is not a defence to say that you were obeying the orders of Akufo Addo or Bawumia or Ken Ofori-Atta.
The Act is clear. It is in mandatory terms. Shall not EXCEED five percent of the total revenue of the previous fiscal year. These guys have no respect for the Rule of law.
Even if the Fiscal Responsibility Act has been suspended, the BoG Act 612 as amended by Act 918 is still in force.