John Dramani Mahama Accuses BoG Governor of Concealing Mismanagement through DDEP.
Former President John Dramani Mahama has raised concerns regarding the governor of the Bank of Ghana’s utilization of the Domestic Debt Exchange Programme (DDEP) to potentially mask alleged mismanagement within the central bank.
Mahama’s observation follows a disclosure by the Bank of Ghana, where GH¢53.1 billion out of the total GH¢60 billion losses incurred in the 2022 financial results were attributed to the government’s domestic debt restructuring efforts, spanning both the initial and secondary phases.
The Bank of Ghana’s statement on Wednesday emphasized that the domestic debt exchange (DDE) was a critical component of the corrective actions aimed at fulfilling requirements for the International Monetary Fund (IMF) program. However, the anticipated goal was not fully met, as the target was to reduce the government debt from 105 percent of Gross Domestic Product (GDP) to 55 percent of GDP by 2028. Despite the efforts, the threshold of 55 percent of GDP was not reached.
To facilitate Ghana’s qualification for the IMF program, the Bank of Ghana played a role in bridging the gap by serving as a loss absorber, thus contributing to the efforts to meet the specified debt threshold.
In response, John Dramani Mahama took to Facebook on August 10 to express his viewpoint. He criticized the Finance Minister for potential damage to the economy while using external factors like Covid-19 and the Ukraine/Russia conflict as distractions. Additionally, Mahama highlighted his concerns about the governor of the Bank of Ghana employing the DDEP as a smokescreen while accusing the central bank’s actions of contributing to its alleged deterioration.
The former President’s comments underscore the ongoing dialogue surrounding the role of DDEP and the wider financial landscape, providing insights into the perceived management of Ghana’s economic affairs.
