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The
Director
of
Communications
of
the
Bank
of
Ghana,
Mr.
Bernard
Otabil,
said
that
as
a
matter
of
public
interest,
central
banks
all
over
the
world
have
registered
losses
in
their
quest
to
achieve
their
price
stability
mandate.
His
comment
comes
after
the
Member
of
Parliament
(MP)
for
Bawku
Central,
Mr.
Mahama
Ayariga,
on
the
authority
of
Dr.
Cassiel
Ato
Forson,
the
Minority
Leader
in
Parliament,
wrote
to
the
Greater
Accra
Regional
Commander
of
the
Ghana
Police
Service
notifying
the
police
command
about
a
planned
public
protest
against
the
Governors
and
Board
of
the
Bank
of
Ghana
on
July
30,
2024.
Offering
reasons
behind
the
protest,
the
MP
stressed,
among
others,
that
“the
Governor
has
embarked
on
the
construction
of
a
new
house
for
the
Governor
himself
at
a
speculated
cost
of
Forty
Million
United
States
Dollars
(USD$40
million)
and
has
refused
to
disclose
to
us
the
actual
cost
when
the
Minority
wrote
to
him
requesting
the
information
on
the
cost
of
the
Governor’s
house
under
construction”.
However,
it
may
be
recalled
that
in
a
letter
to
the
MP
by
the
Bank
of
Ghana
(based
on
a
request
for
information
made
to
the
Bank
by
the
MP)
dated
June
18,
2024,
the
Bank
explained
to
the
MP
that
“With
the
approval
of
the
Public
Procurement
Authority
(PPA),
the
BoG
awarded
a
contract
for
the
construction
of
a
bank
duty
post
at
the
premises
of
the
old
clinic.
The
BoG
went
through
the
necessary
procurement
processes
in
accordance
with
the
Public
Procurement
Act,
2003
(Act
663)
as
amended
by
the
Public
Procurement
Act,
2016
(Act
914)
in
2022.
The
cost
and
details
of
the
construction
may
be
obtained
from
the
PPA”.
Meanwhile,
further
checks
have
revealed
that
the
Governor
of
the
Bank
is
already
in
his
second
term
of
office
and
there
is
no
way
that
the
Bank
would
be
constructing
a
house
for
the
“Governor
himself”.
Asked
whether
the
Bank
was
aware
of
the
planned
protests
and
the
letter
to
the
Greater
Accra
Regional
Police
Commander,
the
Director
of
Communications
of
the
Bank
of
Ghana,
Mr.
Bernard
Otabil
stressed
that
he
has
seen
a
copy
of
a
letter
circulating
on
social
media
purported
to
be
a
notice
of
protest
but
cannot
speak
to
it
because
he
has
not
seen
an
original
copy
of
the
document.
Pressed
on
some
of
the
allegations
made
in
the
letter,
Mr.
Otabil
stressed
that
as
a
matter
of
public
interest,
central
banks
all
over
the
world
have
registered
losses
in
their
quest
to
achieve
their
price
stability
mandate.
“Central
banks
all
over
the
world
are
registering
negative
equity
and
this
does
not
mean
they
fold
up
and
cease
operations.
Ours
is
the
provision
of
public
good,
therefore
we
place
purpose
over
profit.
This
is
the
story
of
central
banking”.
“As
I
have
explained
in
previous
discussions,
the
Bank
of
Ghana
is
policy
solvent
and
not
bankrupt
as
it
has
been
touted.
In
fact,
the
Annual
Report
and
Financial
Statements
(2023)
released
some
few
months
ago
provides
elaborate
explanation
on
the
Bank’s
policy
solvency.
In
2023,
fighting
inflation,
that
is
reducing
inflation
from
54.1
per
cent
at
end
December
2022
to
23.2
per
cent
at
end
December
2023
came
with
a
cost
of
more
than
GHS8
billion,
contributing
to
the
loss
in
that
year.
In
2022,
the
Domestic
Debt
Exchange
Programme
was
the
bane
of
the
financial
position”.
“If
BoG
had
not
suffered
the
hit
all
the
pensions
funds
in
the
country
would
have
been
wiped
out.
BoG
is
the
only
institution
that
can
absorb
those
losses
and
correct
it
over
time”.
On
the
issue
of
wanton
cost
incurred
by
the
Bank,
Mr.
Otabil
explained
that
“In
BoG,
we
engage
in
strategic
planning
spanning
a
number
of
years.
Every
year,
Departments
draw
up
their
activities
for
the
following
year
and
it
is
costed,
and
captured
in
the
budget,
which
becomes
the
operational
blueprint.
There
are
budgetary
hearing
processes,
and
the
Board
sub-committee
reviews
them
and
final
budget
is
presented
for
Board
approval.
All
activities
undertaken
are
budgeted.
And
in
the
area
of
procurement,
all
the
PPA
processes
are
followed”.
Commenting
on
the
Bank’s
deficit,
Mr
Otabil
explained
that
“The
IMF
and
all
international
bodies
know
we
will
ran
a
deficit
for
a
few
years
before
the
situation
is
corrected.
The
proposed
government
recapitalisation
only
has
to
do
with
the
direct
impact
of
the
DDEP,
which
was
necessary
to
access
the
IMF
programme.
Government
recapitalisation
will
not
be
done
in
a
single
year.
It
will
be
done
over
a
period
of
time
in
order
not
to
negatively
impact
the
fiscal
space
created.
These
are
technical
matters
and
the
Bank
is
ready
to
provide
further
education
on
it,
even
through
a
workshop.
There
are
no
hearsays
here
but
issues
of
fact.
The
Bank
is
committed
to
maintaining
stability
in
the
general
level
of
prices
to
improve
the
living
standard
of
all
Ghanaians”.