By Fred E. KISSI
As I reflect on the ongoing debate surrounding Dr Johnson Asiamah’s appointment to the Bank of Ghana, one thing is clear: I am neither a politician nor do I hold entrenched political views. I am a concerned Ghanaian aspiring for a much better economic and financial future for Ghana.
Dr Johnson Asiamah’s appointment as Governor of the Bank of Ghana has generated controversy, sparking debates in recent political, financial, and economic discussions among Ghanaians. His nomination has elicited mixed reactions and raised important questions about competence, trust, and governance in Ghana’s financial sector.
Before delving deeper, I want to extend my heartfelt congratulations to our President, H.E. John Dramani Mahama, on his return to the highest office in the land. His victory was well-earned as reflected in the election results. The Presidency is a challenging role and Ghanaians must support him for the country’s prosperity. I also acknowledge Dr Mahamudu Bawumia and the other presidential candidates who contested the election; Their efforts and contributions to national discourse must not go unnoticed.
With a new administration taking shape, key appointments are being made to steer national affairs. One of the most pivotal positions is that of the Governor of the Bank of Ghana. However, Dr Johnson Asiamah’s nomination has courted concerns, particularly regarding his past involvement leading to the banking sector crisis of 2018 and the legal case instituted against him, which is now purportedly withdrawn by the new administration. While there is no question about his technical expertise and experience, many Ghanaians believe that the broader implications of his appointment deserve careful consideration.
The Legal Case Against Dr Asiamah
In February 2020, Dr Asiamah, a former Second Deputy Governor of the Bank of Ghana, was charged with wilfully causing financial loss to the state. The case relates to a 2016 transaction in which an unsecured deal of circa GHS150 million was transferred from Unibank to Universal Merchant Bank (UMB). Prosecutors argued that Dr Asiamah authorised the transaction while Unibank was on emergency liquidity support at the Bank of Ghana, an action they claimed contributed to the bank’s eventual collapse. Dr Asiamah denied the allegations, and the case was pending in court until recently.
The prolonged nature of the case has sparked debate about whether it should have reached a logical conclusion before any appointment was made. Some argue that legal due process should not be bypassed, especially for a position as crucial as central bank governor. Others contend that given the duration of the trial without a conclusive ruling, the case had become politically entangled, and it was within the President’s right to discontinue it.
My experience as a former Stressed Assets Portfolio Manager gives me insights into such matters. In my view, the duration of the case does not necessarily indicate guilt or innocence but rather underscores the complexities of the judicial process. Regardless of perspective, the issue raises broader concerns about accountability and the perception of fairness in governance.
Dr Asiamah’s Competence and Public Confidence
As I listen to the ongoing debate regarding his appointment, the primary question is not about Dr Asiamah’s qualifications. His extensive experience in banking, especially in monetary policy and financial stability, is widely acknowledged. Instead, the concern revolves around public trust in his leadership, given the unresolved legal questions surrounding his past actions and the subsequent perception it raises of Ghana’s financial landscape locally and internationally.
Could another qualified individual without such controversy have been a safer choice for this role? How does this appointment affect public confidence in the Bank of Ghana and the broader financial ecosystem? What about our international financial stakeholders like the World Bank, International Monetary Fund, and rating agencies? In more advanced economies, would it be normal for an individual with an unresolved high-profile legal case- regardless of merit-to be appointed to a sensitive position without a clear legal resolution, especially within the same institution for which he was accused?
Despite these concerns, some industry experts have expressed optimism about Dr Asiamah’s appointment. Frank Adu Jnr., former Managing Director of Cal Bank, highlighted Dr Asiamah’s extensive experience, stating that ‘His deep understanding of Ghana’s financial landscape positions him well to navigate current economic challenges and implement effective policies’. Similarly, Financial Analyst Yaw Mensah noted that his appointment ‘is a positive step towards strengthening the Central Bank’s role in ensuring economic stability’. These and many other endorsements suggest that stakeholders anticipate positive impacts on the nation’s economic growth and financial stability under his leadership.
Regardless of the answers to the above questions, Ghana must work toward strengthening its institutional credibility to attract international investor confidence and foster economic stability. Public trust in institutions is already fragile, leadership at the Bank of Ghana must be rooted in competence and capable of inspiring confidence.
While each situation is unique, past central bank appointments in Ghana and internationally have faced scrutiny due to concerns about governance, economic stability and public trust. This highlights the importance of appointments that not only bring expertise but also inspire broader confidence in financial institutions. These concerns are crucial in maintaining the credibility of Ghana’s financial institutions, both locally and abroad.
The 2018 Financial Sector Clean-Up and Lessons for the Future
The collapse of several banks in 2018 remains a major event in Ghana’s financial history. It highlighted both regulatory failures and the necessity of decisive interventions to maintain financial stability. However, it also exposed gaps in governance that must not be repeated.
For Ghana’s financial ecosystem to thrive, it must be managed with a clear commitment to transparency, accountability, and professionalism. Political considerations should be managed such that they do not overshadow regulatory oversight. I believe that key appointments should be made with both competence and ethical considerations in mind. The banking sector is critical to the economy, and those who lead it must be beyond reproach. This is not a slight on the President or the nominee, but a sound of caution to building resilient systems that foster progress for Ghanaians.
Strengthening Institutional Integrity
Looking ahead, it is important for governments, both present and future, to engage in broader discussions about the governance of regulatory institutions like the Bank of Ghana. Trust in financial institutions must be built on both technical expertise and a commitment to ethical leadership and due process.
Dr Asiamah’s appointment brings with it both opportunities and risks. While he is highly knowledgeable in central banking and monetary policy, concerns about his legal history remain a topic of discussion. Moving forward, a key priority should be ensuring that appointments to sensitive institutions like the Bank of Ghana are conducted in a way that promotes both confidence and stability in the financial sector.
In conclusion, Ghana’s financial system is at a pivotal juncture. As a nation, we must thoughtfully balance the need for expertise with the necessity of institutional credibility. The success of the new administration in managing Ghana’s financial stability will rely not only on policy decisions but also on the trust that citizens and international partners place in our institutions. Dr Asiamah’s tenure, once confirmed, will be closely scrutinised—not just for his technical performance but for what his appointment signifies regarding governance and accountability in Ghana’s financial sector.
The writer is the Managing Partner, Amgol Finance Ltd
