The Bank of Ghana (BOG) is struggling with a staggering GHS55 billion negative equity, a financial burden inherited from the previous administration, Finance Minister Dr. Cassiel Ato Forson has disclosed.
“The Bank of Ghana has a negative equity as we speak under the previous administration. They have a negative equity of GHS55 billion, and so their balance sheet is such that they will need the government to bail them out with some money so that they will be able to move from a negative equity to a positive equity,” Dr. Forson stated on Channel One TV’s “The Point of View” on Wednesday.
The finance minister also shed light on the enormous debts owed by various state-owned entities, including the Road Fund, COCOBOD, and the Electricity Company of Ghana (ECG).
“Road Fund owing about GHS5.5 billion, then you have the likes of GETFund, DACF they have their own debt. Then COCOBOD, ECG. COCOBOD owes GHS32 billion, ECG owes GHS68 billion. They owe contractors who have done work,” Dr. Forson noted.
He further emphasized the gravity of ECG’s financial situation, saying “ECG’s situation is so bad that they are supposed to collect the power that they consume. Unfortunately, they buy the power they are supposed to sell to consumers like yourself, collect the money and pay, but the data we’ve seen so far shows ECG collects like GHS1.5 billion, keeps GHS500 million, and pays only GHS1 billion.
“As a result, they are unable to pay IPPs, and as we speak, the government of Ghana through ECG owes IPPs $1.73 billion. Coupled with the $1.70 billion, they also owe suppliers another GHS68 billion,” Dr. Forson added.