Financial expert questions discrepancies in 2021 budget and BoG figures

A financial expert is demanding answers from the Bank of Ghana on the discrepancies between the 2021 Budget Statement presented by the Minister for Parliamentary Affairs, Osei Kyei-Mensah-Bonsu, and the Central Bank in their figures.

Michael Nii Yarboi Annan said in a letter dated Monday, August 30, 2021 and addressed to the BoG with the heading ‘Request for Clarification’ that the discrepancies between the budget statement delivered on Friday, March 12 and the website of BoG do not tally and needs to be explained.

The letter, which was addressed to the Secretary of BoG and was received on September 2, 2021, at the BoG’s mailing office, states that “it is the responsibility of every citizen to burden ourselves with the financial reports from the institution mandated as bankers of Government”.

Mr. Yarboi Annan noted that “equally, I trust that similar responsibility have been placed on the Bank of Ghana to ensure accurate reporting to its shareholders (Ghanaians)”.

“Based on the above, I write to seek clarification on reports in the 2021 Budget Statement and information or report on the Bank of Ghana Website.

“In appendix 8A, page 243 of the 2021 Budget Statement: Total liquidity (M2+) 2018 stood at GH¢76,380M while on the BoG website, the addition of Currency Outside the Banks, Demand Deposits, Savings and Time Deposits, and Foreign Currency Deposit of GH¢11,963M, GH¢22,854.10M, GH¢25,609.22M and GH¢16, 125.56M respectively adds up to a total of GH¢76,552.32M. The difference thereof is GH¢172.32M”.

Mr. Yarboi Annan observed that “in May 2019, the Bank of Ghana issued a new upgraded notes of the 5, 10, 20 and 50 cedis notes and thereafter, from June 2019 to December 2019, its website was not updated with M2+ figures. Therefore, I seek the following questions”.

Is the difference ascertained normal and justified?
Was the difference rectified if not accurate or justified?
Was the difference as a result of the new notes issued in May 2019?
Was the difference as a result of Banks that were consolidated round-about the same period?
Can we claim that if the opening balance of Broad Money (M2+) is inaccurate, then the current balances are equally inaccurate?
Did the Ministry of Finance submit inaccurate figures to parliament of Ghana?
The statement further demanded: “I will be glad if by the responsibility placed on the Bank of Ghana, I will be furnished with the answers to the above six (6) questions raised.”