Causing Financial Loss – Probe ?13 Billion Loss

As Ghanaians start to use the new ?10,000 and ?20,000 denominations, on-going investigations by The Daily Dispatch have thrown up the possibility of the loss of ?13 billion in the tendering process.

A press release by the Bank of Ghana (BOG) on July 24 and signed by the Bank’s Secretary, Mr James Odei, stated that the total cost of printing of the new notes, including additional quantities of ?1,000, ?2,000 and ?5,000 denominations amounted to ?110 billion. The same press release gave the first hint of a possible loss “the total savings gained by the Bank (comparing prices for printing equivalent quantities of notes in 2001 and 2002) by opening up the printing programme to competition through the selective tender process was approximately ?13 billion.”

Economic and financial analysts interviewed by the paper in connection with investigations have called for a probe into how the Bank and effectively, the Ghanaian government, lost ?13 billion. The reaction of one of them summed up the concerns of the analysts. He said: “One thing which is clear is that the cost of printing currency notes will increase with each passing year. Thus the cost of printing equivalent quantities of notes in 2002 will definitely be more than the cost in 2001.

Thus, if the bank is admitting that it made savings of ?13 billion in the cost of printing in 2002 as against 2001, then someone or some people have caused financial loss to the tune of at least ?13 billion to the State. There is the need for some high level probe.”

A number of senior officials The Daily Dispatch contacted at the BOG were hopeful the probe will not only be into the award of 2001 tender to print currencies but into the 2002 tender as well. One of them, in the Audit Department and another in the Research Department, told the paper, “We believe Zero Tolerance is no respecter of persons.

President John Kufour must act now.” If the financial loss of at least ?13 billion to the State is proved, then it is up to the Attorney General to proceed accordingly.