A Finance expert holding the position of Associate Professor at the University of Ghana Business School (UGBS) has raised concerns about the lack of transparency in the activities of the Bank of Ghana (BoG).

Professor Lord Mensah has personally voiced his reservations about the performance of the Governor of the central bank, Ernest Addison, suggesting that the institution may be misusing its operational independence.

In relation to the recently disclosed balance sheet of the BoG, which unveiled a substantial loss of GH¢60.8 billion in the year 2022, Professor Mensah expressed suspicion of potential irregularities within the Bank's operations.

He criticized the perceived opacity in the Bank's actions, remarking that the published balance sheet, along with the associated numbers, provides significant insight.

According to him, various aspects of these increments indicate an abuse of their operational autonomy.

Speaking to media , Professor Mensah highlighted that the Bank of Ghana's autonomy in governance is compromised due to the presence of presidential representatives as board members. This, he argued, contradicts the concept of true operational autonomy.

“They [BoG) 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.

Addressing the causes behind the substantial losses, the finance expert outlined established procedures for the central bank's intervention during economic challenges.

He pointed out that the Bank seemed to have deviated from these protocols.

Professor Mensah further explained that while central banks are authorized to intervene during economic downturns, they should not funnel money through government channels. He emphasized that the Bank of Ghana is meant to stimulate the economy through monetary channels, not fiscal ones.

The reported loss of GH¢60.8 billion by the BoG can be attributed to the following components:

Non-Marketable Instruments: GH¢32.3 billionMarketable Instruments: GH¢16.1 billionCOCOBOD: GH¢4.7 billionPrice and Exchange Rate Valuation: GH¢5.2 billionInterest Expense on Monetary Policy: GH¢3.3 billionIn addition to these losses, it has been disclosed that the Bank spent $250 million on constructing its new headquarters.

In response to these developments, the Minority Caucus in Parliament has expressed outrage and demanded the immediate resignation of Governor Ernest Addison for overseeing such a significant loss.

However, Economist Dr. Patrick Assuming believes that the Bank of Ghana should be given an opportunity to provide a detailed explanation regarding the losses and does not advocate for the governor's resignation.