In a recent presentation of the Minority’s response to the 2023 mid-year budget review, Ghana’s Minority Leader, Cassiel Ato Forson, raised concerns over the Bank of Ghana’s unilateral writing off of government debt without obtaining parliamentary approval. Dr. Ato Forson stressed that crucial decisions related to government debt and finances must undergo proper examination and approval by Parliament.
During his address, Dr. Ato Forson expressed apprehension about the Central Bank and the executive arm of the government’s decision to write off approximately GHC48.4 billion of government debt owed to the Bank of Ghana without seeking the necessary parliamentary approval. He insisted that the government’s entire debt restructuring program should be subjected to parliamentary scrutiny.
“The entire government of Ghana’s debt restructuring program must be submitted to parliament for scrutiny,” the Minority Leader stated firmly.
Contrary to Finance Minister Ken Ofori-Atta’s position that the government has “turned the corner” in the country’s economic management, Dr. Ato Forson vehemently refuted this claim. He expressed his discontent, stating that the country has not made any significant progress in its economic management and remains in a dire economic situation.
“We have not turned the corner. We have not even seen a corner from where we are as a country. In fact, we are still in the woods. We are nowhere near the corner, let alone turn it,” Dr. Ato Forson asserted.
The Minority Leader went on to criticize the government’s handling of state-owned enterprises and institutions, alleging that they have been intentionally collapsed under the current administration’s watch. He pointed out the dire financial state of various state-owned entities, including the Bank of Ghana, which he claimed to be bankrupt with negative equity of over GHC55 billion.
Furthermore, Dr. Ato Forson questioned how once prestigious institutions like the Ghana Cocoa Board could be rendered bankrupt and unable to repay their debts. He highlighted the poor financial health of several other state-owned enterprises, attributing their downfall to the actions of the New Patriotic Party’s administration.
Dr. Ato Forson strongly rebuked the Finance Minister’s assertion that the government has “turned a corner” in its economic management. He cited figures related to GDP growth, net international reserves, inflation rates, and monetary policy, arguing that the current state of the economy does not support the government’s claims of progress.
“The performance of this economic management team, despite the hype, over the past seven years has been beyond abysmal,” the Minority Leader said.
In conclusion, Dr. Ato Forson called for collective sacrifice and dedication from Ghanaians to rectify the economic challenges created under the current administration. He expressed the need for a critical examination of the government’s economic policies and management and urged transparency in the decision-making process, particularly regarding debt write-offs.
With the Minority Leader’s call for parliamentary approval and his critical evaluation of the government’s economic performance, the issue of debt write-offs by the Bank of Ghana is likely to become a subject of heightened public scrutiny and debate in the coming weeks.
