BoG Governor, deputies did nothing wrong in supporting ailing economy - Kwame Pianim

Renowned economist, Dr. Kwame Pianim, has opined that recent calls demanding the resignation of the Central Bank Governor, Dr Ernest Addison, and his two deputies are uncalled for.

He argued that the BoG Governor and his deputies have done no wrong in providing lending support for the ailing economy and haircuts taken with regards to government's Domestic Debt Exchange Programme.

Speaking an interview with Accra-based TV3, Kwame Pianim said BoG Governor and his team did not commit any crime or fraud adding that claims of mismanagement and incompetence are untenable.

“Resignation does not solve any problem. If the Governor resigns now, what happens, the same Minister of Finance [Ken Ofori-Atta] who is at the core of the economic crises recommends to the same president [Akufo-Addo] a new person? They appoint somebody who doesn’t know the terrain, who hasn’t gone through this experience to be able to solve the problem, No”.

“What I am saying is that was it through incompetence, No. Not incompetence. Was it through fraud? Did the Governor benefit? Did any of his company benefit from what he did? No," the renowned economist pointed out.

Dr. Pianim added that the Central Bank did nothing wrong for not going to Parliament before providing lending support to revive an ailing economy adding that the BoG did not need any parliamentary approval before offering financial support for the country.

“I don’t recall that they [BoG] need parliamentary approval. Remember, we suspended the Fiscal Responsibility Act. When the fiscal responsibility was removed it was saying in effect, we cannot obey the regulations that we have governing the fiscal so we are suspending it”.

“When the Minister of Finance went to parliament and they agreed to suspend the Fiscal Responsibility Act, parliament should have asked, what happens to the equivalent that is the Monetary Policy Act which is Article 36 of the Amendment BoG Act which says that if there is an emergency and BoG needs to be able to suspend the rules surrounding monetary policy what they do is to inform the Minister of Finance”, Pianim explained.

He however noted that it is the Minister for Finance’s responsibility to report to parliament on such matters.

“We didn’t make BoG responsible to go to parliament. So, when the Minister of Finance went to parliament to suspend the Fiscal Responsibility Act, somebody from the opposition should have asked, what happened to Article 36 of the Banking Act…and the Minister should have said concurrently that part is also suspended because you cannot suspend the Fiscal Responsibility Act and leave the complimentary dimensions on the monetary policy side,” the economist said.

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