The head of the Economic Management Team (EMT), Vice President Dr Mahamudu Bawumia has said that the EMT does not have decision-making powers.
He says they only advise the cabinet.
His comments come at a time when he has been blamed for the economic challenges that Ghana is facing.
It is recalled that former President John Dramani Mahama asked that he should be removed as head of the EMT for the challenges.
Delivering his address at the University of Professional Studies, Accra (UPSA) on Wednesday February 7, Dr Bawumia, flagbearer of the New Patriotic Party (NPP)., said “Thankfully, I was appointed as chair of the EMT, as a sub-committee to Cabinet we do not have decision-making powers, but I am very proud of the quality of advice we have been providing over the years to Cabinet. as vice president I was asked by the president to assist in solving the problems that were inhibiting the economy. my approach was to help formalize the economy through digitalization as stated in our 2016 manifesto.”
Dr. Mahamudu Bawumia further said that the flak that the Bank of Ghana (BoG) received for supporting the government during the economic crisis was unnecessary.
He says the central bank was responsible enough to put the interest of Ghanaians ahead by deciding to support the government in dealing with the crisis.
It is recalled that the Minority in Parliament strongly criticized the Bank of Ghana, saying the central bank was not fit for purpose.
They bemoaned that the BoG was not able to undertake monetary policy without printing monies.
In its recent audited report, the Bank of Ghana announced that it had recorded GH¢60 billion in losses in its debt restructuring exercise.
Ranking Member on the Finance Committee, Isaac Adongo said “All the monies in our banks that they forced them to save with the Bank of Ghana, which we call the Prudential Reserve, have gone to waste.
“All the monies that they have been borrowing from abroad in foreign currency to support the Cedi are gone and as a matter of fact, if you even take away government debt that they have incurred GH¢48 billion, you will still see that the Bank of Ghana has a hole of GH¢22 billion. What this means is that the Bank is not fit for purpose because it cannot undertake monetary policies without printing money because it doesn’t have money.”
But Bawumia said in his address that “The Bank of Ghana provided needed financing to the government at a critical moment. What the BoG did was very responsible in putting the interest of the citizens first,” he said.
Dr Bawumia further stated that one cannot ignore the fact that the outbreak of the Covid pandemic and the Russia-Ukraine war devasted global economies including Ghana.
He recounted that notwithstanding the challenges that the Akufo-Addo administration inherited from the Mahama administration, they managed to stabilize the economy with all economic indicators pointing in the right direction.
However, he said, the pandemic and the war impacted negatively on these indicators.
“Notwithstanding the difficulties we inherited, we had to get on with …we have to among other things fix dumsor, National Health Insurance, clear the arrears, make education free and accessible.
“Between 2017 and 2019, all the indicators, economic growth, industry growth, fiscal deficits, and exchange rate were all moving in the right direction.
“In 2020 and 2022 we experienced several challenges triggered by the pandemic which brought the world to a halt,” he said during his address at the University of Professional Studies, Accra (UPSA) on Wednesday, February 7.