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Bank of Ghana Governor accused of cooking figures

Dr. Ernest Addison, Governor, Bank of Ghana

The opposition National Democratic Congress (NDC) Member of Parliament (MP) for Bolgatanga Central, has described the Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, as a very deceitful person, accusing him of “cooking data” just to make the government of President Akufo-Addo, look good.

According to Isaac Adongo, Dr. Addison is not what he had portrayed himself, insisting his “dossier” can completely nail the governor, because, in his view, Mr Addison is dishonest and therefore, unfit for his job as a Central Bank boss.

“When it comes to Dr. Addison, I have a dossier of lack of credibility on Dr. Addison, and the governor of the Central Bank is not fit to sit there”, adding “This is Addison, lack of integrity. This is the worse governor I have ever seen. The governor that does not have the slightest shame in cooking data”.

Read: Bank of Ghana Receiver working to pay locked funds of depositors of MFIs – Deputy Governor

The MP, who has also described the Finance Minister, Ken Ofori Atta, in even worse terms, says the Governor is in an unholy alliance with the Finance Minister, as he continues to cook figures to support their lies and deceive Ghanaian, describing them as ‘Piccadilly duo’ who wore white apparel, quote the bible, playing and singing gospel songs loudly, while robbing people undetected. This he said had been depicted in a Nigerian movie called The Piccadilly Armed Robber”.

He revealed a confrontation between him and the governor at a Finance Committee sitting in Parliament, and the governor’s delivery was so pathetic that he had to run away in a miserable state after failing to justify his figures on paper and what he had posted on the website of the Central Bank. He is insisted there were huge discrepancies.

“And what is worse is that the Bank of Ghana itself is cooking data in order to show this same kind of lies that Ken Ofori Atta is telling and I want to show you”, he said.

Isaac Adongo, a member of the Finance Committee of Parliament, while speaking on Metro television’s Good Evening Ghana with Paul Adom Otchere in reaction to the 2020 Budget statement, again cited how in 2018, the BoG, reported the Capital Adequacy situation of the various commercial banks and gave figures, which did not put the banks in good light.

According to him, the data presented showed at the time that the banks were not in good shape, which meant that the least problem, was going to push the sector into a ditch.

“You see, in 2018 January to June, the Central bank reported the capital adequacy situation of our banks after recapitalization and when they reported the capital adequacy situation, our banks started 1 January 2019 with capital adequacy 17.4 percent and that is by using the Stringent Rule of Basel II and III. By June, the numbers had deteriorated to 16.3 percent {although} Basel II and III requires that you must have a minimum capital situation of 13 percent.

What it means is that, our banks had a buffer of just 3.3 percent and therefore, the slightest loss, will move our banking sector below the internationally accepted standard of 13 percent…. When you put all of that together, you must have capital that covers at least a cover of 13 percent but even 13 percent, we had 16.3 percent after recapitalization.

What it means is that, the only buffer we had was 3.3 percent, so in case the banks go into the slightest trouble and they make a loss, that is around 4 percent, we will be back to a minimum capital adequacy that is worse than what is expected, and this was released by the Bank of Ghana in July.”

Shockingly he said, by September when the Bank, released the same Capital Adequacy situation, the story had changed as they changed all the figures from January-June 2019, even when they had released the same data earlier, saying a figure of 7.4 percent miraculously changed to 20.1 percent.

Mr Adongo, who said he, has on a number of occasions accosted the governor with evidence of his lies said, “By September when bank of Ghana released the data on Ghana’s capital adequacy, they went and cooked all the numbers from January to June, forgetting that in July, they had released January to June data.

By the time they came to release the last monitoring policy committee meeting data, they went back and changed the capital adequacy that was deteriorating from January all the way to June; suddenly the 7.4 percent, became 20.1 percent.

This data at the Finance Committee meeting when the BoG governor came and refused to report on the banking sector and I took him on, he said there was something on his website. And I said yes, it is good, I have gone there, but when I went there, I saw that you have cooked your data after June.

And I gave him this document, the summary economic and financial data everything to go and review and tell how he himself, has suddenly cooked the numbers. He looked at them and later I said, they should go and bring my document, he was quiet he didn’t say anything and left the place”.

He went on “This is not the first time, I have had to write to him officially before, asking him why all of sudden, he changed all of our gross international reserves from November last year. I wrote a letter to him and leaked that letter to the press, he never responded”.

Mr Adongo, also described the banking sector as having performed abysmally, although the Finance Minister, touted it as the best but to him, “Ken Ofori-Atta’s own data to show you the disingenuity” because “[In] 2017, the financial insurance service activities reported by Ghana Standard Authority, said that the financial sector grew by a negative 17.7 percent and this was from a growth of 8 percent in 2016”.

Again “It got to 2018 negative 8.2 percent. 2018 by half-year, we were doing negative 12.6 percent. So, when Ken Ofori –Atta, tells you the Banking sector is strong, it is well capitalized and liquid, he is saying that a banking sector that is growing in the negative, is the best for Ghana”.

Bolgatanga Central MP, mocked and described as laughable government attempt to claim glory for airlines flying to Wa.

He demanded the role the Akufo-Addo government played in getting these private airlines to ply that route, when records show that, it contributed absolutely nothing to the Wa airport construction.

“One of their weirdest achievements is that now airlines fly to Wa and that is an achievement. So, is Africa Airline for the Government of Ghana? Did Akufo-Addo construct the Wa airport”? This man that has not constructed an acre of land of road, you are saying that he built an airport?” he asked host Paul.

Mr Adongo, went on to point out what he saw as more lies in the 2020 Budget statement, saying the claim by the Finance Minister that, government had provided stimulus packages to businesses and industries, was unfounded, because records from the Trades and Industry Ministry show that no such money was released by the Finance Ministry.

Read: Bank of Ghana cracks whip on pricing in dollars

“Two days ago, we had the opportunity to meet the Ministry of Trade and Industry. Yesterday, I heard Ken Ofori Atta say that they have provided stimulus package for about 191 companies.

The Ministry of Trade and Industry, met the Committee of Trade and Industry of which I am a member and told us that they budgeted Ghc400million for stimulus package for industries and businesses, but not one kobo, pesewa came from the Ministry of Finance. So Ken, are you a magician to be given stimulus package when you have not released money?”

Mr Adongo, further asked how government was able to use some 50 million Ghana Cedis to construct record 57 factories under government’s flagship 1 district 1 factory programme in 2018.

“You see, apart from that, 1 District 1 Factory, he says that the whole of 2018, they received equivalent of GHc119 million warrant for 1 District 1 Factory. Only 67 million of that money was accessed to the Ministry, to do 1 District 1 factory.

Out of that 67 million, they told us that 17 million of that money was for goods and services; only 50 million was supposed to go directly to the 1 district 1 factory, so 50 million can give you 57 operational factories in Ghana?”

He added “… Ken says that there are 57 1-districts, 1-factories completed and are in operation as a result of only 50 million Ghana Cedis which was even used to subsidize interest on loans that businesses went into? You see, this document and the kind of lies that we heard yesterday, it is legendary!

He once again expressed his disappointment saying“I have not heard before and I shudder and feel scandalized when I take my time to read this document and I read the communication we have had from people in government, who have approached several committees.

 

Source: theheraldghana.com