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John Mahama questions contract extension for Central Bank Governor over $60 billion loss

In a pointed critique of the current central bank leadership, former President John Dramani Mahama questioned the likelihood of a contract extension for a governor responsible for significant financial mismanagement.


Mr. Mahama's remarks come amidst growing scrutiny over the economic performance and decision-making of the central bank during the current administration.


Mahama began by explaining the typical tenure of a central bank governor, which is a four-year contract subject to renewal based on performance.


He noted that the term of a governor often overlaps different administrations, ensuring continuity and stability in monetary policy.


However, he pointed out that this continuity can be disrupted when a governor is forced to resign, as was the case with former Governor Isaku Nashiru, who served during Mahama's presidency.


Mahama highlighted that the renewal of a central bank governor’s contract should be contingent upon their performance.


He questioned the rationale behind extending the contract of a governor who had overseen a $60 billion loss, printed 42 billion Ghanaian cedis, and injected it into the economy, thereby driving inflation to 54%.


“If you are a governor who presided over a $60 billion loss, I wonder if you expect a contract extension,” Mahama stated.


He criticized the decision to print and inject such a large sum of money into the economy, arguing that it exacerbated inflation and contributed to economic instability.


Mr. Mahama also took issue with the governor's choice to invest $215 million in a new headquarters building during a financial crisis, suggesting that such decisions demonstrate a lack of prudent fiscal management.


The former president stressed that contract renewals for central bank governors should be merit-based, reflecting their ability to maintain economic stability and make sound financial decisions.


He implied that underperformance and poor decision-making should not be rewarded with extended tenure.


Mahama's comments underscore the importance of accountability and performance in public office, particularly in key financial institutions like the central bank.


His critique adds to the ongoing debate about the effectiveness of current economic policies and the leadership overseeing their implementation.


Story by: Joshua Kwabena Smith

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