The Amissah-Arthur Vetting Report - Other Matters

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Created on Tuesday, 14 August 2012 00:00

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*Woyome saga:

Mr. Amissah-Arthur was referred to the Woyome scandal and asked why the Bank of Ghana of which he was the governor paid such substantial amount to the businessman when the late President had instructed that the money was not to be paid. The outgoing Governor of the Central Bank stated that the Bank of Ghana did not receive any instructions from the President not to make the payment. He further explained to the Committee that the Bank of Ghana is a banker to the government and therefore if there is credit on the account of the account holder (government), the Bank cannot refuse to pay upon the presentation of a valid instrument.

*Onward Investment Company:

The Vice President-Designate informed the Committee that two suits have been instituted against the Central Bank in respect of the case of Onward Investment Company which the Central Bank closed down without depositors getting their deposits back. He informed the Committee that he was apprehensive about providing further details because of the court case. Notwithstanding, he explained that the bank would strongly contest the case since the Bank never issued any license to that company. To him, all the Central Bank did was to secure the interest of the public by ensuring that the company did not continue to perpetuate the illegality.

*Currency Exchange Rate and Elections:

The Nominee confirmed the assertion that every election year, the country experiences some economic instability, saying that the best example in recent times was 2004. He said the Cedi has experienced significant depreciation this year probably because the country’s import bill almost doubled this year. He assured the Committee that mechanisms have been put in place, including calling on reserves and this has led to the deceleration of the depreciation.

*Interest Rate Disparities:

Honourable Members wanted to know what was accounting for the wide disparities between the Bank of Ghana policy rate and the commercial banks’ lending rate; and also between the commercial banks’ lending rates and deposit rates. To this, the nominee explained that when he took office as governor, he found that the disparities were very wide, so as a first step, the Bank decided to inform the public about the interest rates being charged by various banks so as to enable consumers to shop around. He indicated that a new formula has been established by the Central Bank within which financial institutions in the country would be required to model their interest rates. He promised that in due course, the public would feel the impact of the formula.

*Intra-party opposition to his nomination:

It was suggested to the nominee that the voices of opposition to his nomination as Vice President coming from within the National Democratic Congress was a result of “indiscipline”. Responding, Mr. Amissah-Arthur stated that the situation was a matter of “plurality” rather than indiscipline. He expressed contentment about serving as Vice President for the remainder of the President’s term saying that even one day in that position is “a great honour”. He pledged to work diligently to assist the President to prosecute his mandate.

*Allegations on Sexuality:

The nominee’s attention was drawn to some media publications which sought to cast insinuations on his sexuality. The Vice President-Designate therefore took the opportunity to emphatically deny such allegation and insinuation, blaming it on some former school mate who wanted to extort money from him through such blackmail. He stated that a critical analysis of his residences and household history would indicate clearly that the publications were mere fabrications.

*Vault Break-In:

The nominee was asked whether upon assumption of office as Governor of the Central Bank, he found any of the vaults broken into and moneys and gold bars stolen, he simply responded “never” and further added that no gold bullions or bars had disappeared from the Bank. He explained that the Bank has very high security which makes all public assets kept there, including the State Sword, very safe.

*WAMZ Convergence Criteria:

It was put to the nominee that whilst Ghana had done well in the primary convergence criteria for the West African Monetary Zone (WAMZ) (by achieving 3 out of 4 of the primary criteria), the country had not done so well in the secondary criteria where only 1 out of the 6 criteria has been achieved currently.

The nominee expressed the view that there should be more commitment to the convergence process, if that’s what the countries want to do. He quickly added that he gets the sense that some of the countries are getting concerned about the whole WAMZ arrangement. His personal idea was that it may not be the best thing to do for now, given the experiences of other blocs such as the Eurozone.

*5.0 CONCLUSION:

The Appointments Committee has carried out its duty diligently in accordance with the 1992 Constitution and the Standing Orders of the House with respect to the nomination of Mr. Kwesi Bekoe Amissah-Arthur for appointment as Vice President of the Republic of Ghana. The Committee is satisfied that the Mr. Amissah-Arthur has fully met the requirements of the Constitution and therefore respectively recommends his nomination to the House for approval by consensus.

Respectfully submitted.

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HON. EDWARD DOE ADJAHO FIRST DEPUTY SPEAKER AND CHAIRMAN APPOINTMENTS COMMITTEE

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ALHAJI IBRAHIM GOMBILLA DEPUTY CLERK TO PARLIAMENT 6TH AUGUST, 2012

Source: New Crusading Guide/Ghana