…. Begins His 2016 Campaign On Central University NPP Platform
By Cecil Mensah
The Trinity Hall of the Central University College (CUC) at Miotso near Dawheya, off the Accra-Aflao road, will witness yet another spectacle of “Bawunomics”, by Dr. Mahamudu Bawumia, who is being prepared by family and friends of Nana Akufo-Addo to be his Running Mate in the December 2016 Presidential Elections, for the third time.
The onetime Deputy Governor of the Bank of Ghana (BoG), will tomorrow March 26, 2014 mount the podium created for him by the management of the CUC to speak on the topic: ‘Restoring the Value of the Cedi’ in an attempt to find measures to the rapid depreciation of the Cedi.
It will be chaired by the President of the CUC, Prof. Kwesi Yankah with guests including, Nana Akufo-Addo, Jake Obetsebi-Lamptey and many other top functionaries and National Executives of the New Patriotic Party (NPP). It is expected to be telecast live on some selected radio and TV stations.
What is interesting, about the programme is that no Government official like the Finance Minister or the Governor of the Bank of Ghana, has been invited by the private university to also speak on the platform and stating the difficulties in holding the Cedi in check.
Indeed, the programme comes days after Dr. Bawumia, sat next to Nana Addo during his announcement to contest the NPP presidential slot for the third time, and got an overwhelming endorsement on a so-called dexterity performance at the NPP’s botched Supreme Court Election Petition hearing.
The owner of the University, Pastor Mensa Otabil, has himself developed a penchant for seeing nothing good in the John Mahama-led administration. Recently, he said prayers could not resuscitate the falling cedi, adding that proper planning and thinking will. At the recent meeting with the
clergy men by President John Mahama, he did not attend.
Pastor Otabil, a friend of Databank owner, Ken Ofori-Atta who holds Nana Addo’s war chest, has in the past refused to attend similar invitations
from the late John Evans Atta Mills, when he was President.
Ken Ofori-Atta is a cousin to Nana Addo and a board member of the CUC.
Dr. Bawumia, who is currently the Head of Economics Department at CUC, was one of the Deputy Governors, who supervised the re denomination of the Cedi in 2006 under the NPP ‘s administration led by ex-President John Agyekum Kufour, an exercise experts have argued undervalued the Cedi, hence its current problems.
The Cedi, according to reports, fell because of the interbank Dollar activities, where three banks namely; Barclays Bank limited, Stanbic Bank Limited and Standard Chartered, were allowed by the Central bank under the watchful eye of Dr. Bawumia to trade in illicit Dollars through money laundering.
He (Bawumia) sat aloof and allowed these three banks to even export US Dollars, when the Central Bank was also importing Dollars into the country.
An economic intelligence report recently published by The Herald revealed the causes and effects of the Cedi against the major trading currencies, especially the United States Dollars; the Euro and the Pound Sterling of the United Kingdom (UK) were as a result of inaction on the part of the Central bank.
It also blamed overly liberated trading activities in areas such as, mining, timber, banking, telecom sector and the Free Zones enclave.
The exclusive report in the possession of The Herald talked about the ineptitude on the part of the Central bank to monitor the huge foreign currencies being flown abroad.
According to the report, the drain on the country’s foreign exchange appears to have been the main cause of the depreciation of the Cedi.
“The problem was occasioned by the Ghana Investment Promotion Council (GIPC), the technical managers of the technology transfer fees, Foreign Direct Investment (FDI); mining companies and retention of export proceeds and timber companies migrating into the Free Zones”.
The report identified that whilst the Bank of Ghana, allowed Scancom to transfer US$146 million out of the country, but gave a paltry $24,920.562.76 as the amount transferred.
“The drain on the country’s foreign exchange, appears to us to be the main cause of the depreciation in the Cedi. This problem has been occasioned by the following: GIPC, Technical, Management Services and Technology Transfer Fees, Foreign Direct Investment (FDI), Mining Companies & Retention of Export Proceeds and Timber Companies Migrating into the Freezone”, the report said.