Isaac Adongo, the Ranking Member of the Finance Committee of Parliament, has accused the Bank of Ghana (BoG) of falsifying figures related to the institution’s effectiveness.
According to him, the Central Bank is currently under-declaring the losses the institution had to incur in the previous year.
The Bank of Ghana has disclosed a significant financial loss of GH₵10.50 billion for the fiscal year ending 2023, marking a notable improvement from the GH₵60.9 billion loss reported in 2022. This financial setback is primarily attributed to a substantial rise in total interest expenses related to its open market operations, which surged by GH₵6.7 billion during the period under review.
According to the Bank’s 2023 Annual Report and Financial Statement, the increase in expenses was deemed necessary to manage the country’s excess liquidity and support the broader macroeconomic adjustment programme aimed at stabilizing inflation rates.
But Isaac Adongo believes a quadruple of the figure quoted by the Central Bank has been lost.
“I have reason to show to you that the Bank of Ghana is cooking the books. I held a press briefing in this room when I showed you that thee impairment of 48 billion last year, they wrote off 32 billion. They didn’t dispute it. So the impairment was 16 billion. In this report, in a note, you have stated that that impairment has increased from 16 billion to 53 billion. Is that not an impairment of 37 billion. And you write of impairment as expenditure. When you write off the expenditure, you will see that the Bank of Ghana made a loss of 47 billion, not 10 billion.”
He noted that he has received a copy of the Central Bank’s recent report after reaching out to the establishment.
Despite the incurred loss, the Bank of Ghana highlighted that its aggressive open market operations yielded positive results, contributing significantly to a notable slowdown in inflation to 23.2% by the end of 2023, down from a staggering 54.1% recorded at the close of 2022.
Total operating expenses for 2023 were reported at GH₵19.2 billion, showcasing a significant decrease from the GH₵66.9 billion recorded in the previous year. This reduction was attributed to lower impairment charges on loans and advances, as well as adjustments in the Bank’s holdings of Government of Ghana securities.
As of December 31, 2023, the Bank of Ghana and its subsidiaries reported total liabilities surpassing total assets by GH₵65.36 billion. The institution also clarified that no funds were allocated for reserve appropriation, given the reserve amount remained in deficit at the end of the financial year.
In addressing policy solvency concerns, the Bank assured stakeholders of its ability to generate sufficient realized income to cover the costs associated with its monetary policy operations. The Board of Directors and Management reaffirmed that the policy solvency outcome for 2023 aligns with the strategic objectives outlined in the previous fiscal year.