According to Minority Leader Dr. Cassiel Ato Forson, the Bank of Ghana (BoG) does not have the power to forgive government debt without getting approval from Parliament first.
He also noted that the government cannot force the BoG to forgive its debt without going through the proper parliamentary channels.
During the concluding debate on the 2023 Mid-Year Budget Review, Dr. Ato Forson disclosed that the Central Bank, in conjunction with the executive arm of the government, has already written off approximately GH¢48.4 billion of government debt owed to the BoG without any parliamentary approval.
He argued that the government’s entire debt restructuring program should be subjected to parliamentary scrutiny and approval.
“Mr. Speaker, we have not turned the corner. We have not even seen the 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,” said Dr. Ato Forson, refuting Finance Minister Ken Ofori-Atta’s claim that the government has successfully managed the country’s economy and overcome its challenges.
He further criticized the government for the financial woes faced by state-owned enterprises (SOEs) and institutions, specifically highlighting the Bank of Ghana’s negative equity of over GH¢55 billion. The Minority Leader expressed concern over the bankruptcy of various entities, including the Ghana Cocoa Board and several other state-owned enterprises.
Dr. Ato Forson called on the government to apologize to the people of Ghana for the negative effect that the poor financial condition of SOEs has had on their lives and the country as a whole.
The Minority Leader also questioned the government’s claims of economic success, pointing out alarming indicators such as a revised GDP growth rate of 1.5%, net international reserves covering only one week of imports, and inflation reaching 42.5% and rising. He criticized the monetary policy and commercial bank lending rates, which have also been on the rise.
“The performance of this economic management team, despite the hype, over the past seven years has been beyond abysmal,” said Dr. Ato Forson, adding that Ghana will require over five years of collective sacrifice and dedication to turn things around given the current economic challenges.
Dr. Ato Forson concluded by suggesting that a book on “HOW NOT TO MANAGE AN ECONOMY” be dedicated to the Akufo-Addo/Bawumia government, citing what he sees as a rewriting of Ghana’s economic history.