Second Deputy BoG Governor resigns

The Second Deputy Governor of the Bank of Ghana, Dr Johnson Asiama has resigned. Sources say he has taken his accumulated leave leading to his exit from the bank by the close of this month.

Dr Asiama’s decision to move on was communicated in the first week of December to some senior persons at BoG.

Did Dr Asiama resign or was he pushed?
It is not clear for now what might have influenced Dr Asima’s decision to move on or step down from that position, but sources say challenges in working with the new government and some key senior persons at the BoG because he is perceived as an “outsider.”

According to sources, Dr Asiama was pushed out, even though he was personally willing to work with the current administration in his professional capacity, until his term expires in April 2020.

Some of his colleagues at the Central say this action was expected especially with a change in government.
But persons close to him have rejected this argument saying questions about his ability to properly supervise the commercial banking space, believed to be one of the reasons for pushing for his exit, are unfounded.

Cost of Dr Asima resignation on public purse
With Dr Johnson Asiama left with two more years to the expiration of his contract at the Bank of Ghana, his resignation comes at a huge cost to the state.

If a settlement was reached to pay him off his monthly salary before the exit, he will be paid for the next 24 months as well as take all his entitlements.
For some, this is worrying because he earns his monthly salary for doing nothing, just like what was done in the case of former Governor, Dr Nashiru Issahaku, who sources say was also forced out.

Considering the effect on the public purse, some industry players believe it would have been prudent to let him serve the two years left on his contract.
Any justification for Dr Asiama’s ‘forced resignation’?

For some persons close to government, the issue has more to do with trust than competence, since they would be comfortable with having someone they believe they can work with.

But this argument assertion has been shot down by some people saying under the current dispensation of zero financing of the budget, it does not really matter who occupies the top position at the Bank of Ghana.

There were also reports that some sections of the Central Bank staff did not want Dr Asiama out for some unexplained reasons.
JoyBusiness understands there was a plan to force Dr Asiama also out at the time of Dr Issahaku’s exit, but government was cautioned by institutional experts to protect the institution from perceived ‘political attack.’

Questions have been raised about how some supervisory issues at the Bank were handled by Dr Johnson Asiama, which resulted in some challenges in the banking sector.

According to persons close to government, this made it very difficult to work the former Second Deputy Governor.

Would this action have any impact on BoG’s independence and market confidence?
Some banking sector analysts told JoyBusiness the action if not handled well could affect the image of the Central Bank.

They say the news comes at a time that the Bank is struggling to assert its independence with the various banking laws and reforms.
They believe this action will once again be seen as an attempt by politicians to interrupt the in-built institutional process.

 

Source : Myjoyonline