Audit the previous administration’s banking sector cleanup – Dr. Atuahene to government

Banking and finance expert Dr. Richmond Atuahene has called on the incoming government to conduct a forensic audit of the funds used for the financial sector bailout.

Speaking on “Morning Starr” with Lantam Papanko, Dr. Atuahene questioned the discrepancies in reported bailout figures and urged thorough scrutiny of the sector.

“The reason I want the new government to act when they take over is to do a forensic audit of the amount that they said has been used in bailing out,” he stated. He pointed out that while government sources claimed GH₵21 billion was spent on banking cleanup and GH₵25 billion on the financial sector, official records from the International Monetary Fund (IMF) in 2019 reflected only GH₵12.7 billion.

Dr. Atuahene urged Johnson Pandit Asiama, a key figure in the new administration, to take a critical approach and not accept reported figures at face value. “He must act like the Minister of Roads. He must do what you call a forensic audit of every cost item, everything that has happened, including the remittances,” he emphasised.

Highlighting further financial discrepancies, he revealed that Ghana’s Economic Summary Report for 2023 stated that the country received GH₵55.1 billion in remittances. However, the Bank of Ghana’s balance sheet only accounted for GH₵2.8 billion, raising concerns about transparency.

To ensure impartiality, Dr. Atuahene recommended hiring foreign auditors instead of local ones. “I don’t like Ghanaian people doing it. I want foreign auditors to come and conduct the forensic audit of the entire banking sector cleanup, including legacy issues,” he stressed.

Beyond the bailout audit, he warned about the financial instability of the Bank of Ghana, which he described as “capital deficient.” He disclosed that the previous Minister of Finance had signed an agreement with the IMF requiring a recapitalisation plan for the central bank. Given Ghana’s limited fiscal space under the IMF program, Dr. Atuahene questioned how the government would secure the necessary funds.

“You can’t recapitalise the banks and leave the central bank out,” he cautioned, urging the new administration to take a holistic approach to financial sector reforms.