Banking consultant calls for constitutional ceiling on gov't borrowing

Ghanaian banking consultant Dr. Richmond Atuahene has called for urgent reforms. He wants strict limits on government borrowing. He described Ghana’s current economic situation as “disappointing.” He warned of long-term consequences if no action is taken.

Dr. Atuahene spoke at a constitutional review dialogue. He proposed amending the Constitution to limit borrowing to 50% of GDP. He argued that unchecked borrowing has led to a deepening debt crisis in Ghana.

He stated, “Never in the history of any African country have we seen this.” He noted that Ghana is the first in Africa to harm people's savings like this.

Dr. Atuahene recalled his past warnings about rising debt. In 2018, he warned that excessive borrowing would lead to severe consequences. He said he was insulted for his views at that time. Now, he believes they are paying with their blood instead of money.

He emphasized the need for a constitutional ceiling on borrowing. This would prevent politicians from making empty promises and accumulating excessive debt.

“Let us set it right in the constitution,” he urged. “No one should borrow beyond 50% of our GDP ratio.” This change would stop leaders from making unrealistic commitments and then borrowing irresponsibly.

Dr. Atuahene also expressed concerns about political interference in the Bank of Ghana's governance. He highlighted issues regarding central bank governors' tenure and independence.

He called for legal protections against arbitrary dismissals by political leaders. “A governor should not be forced to resign just because a new party comes into power,” he said.

He pointed out that about ten central bank governors have been removed without justification over the years. The Constitution states that governors must remain unless they are incompetent or incapacitated.

Using Nigeria as an example, he mentioned the former Central Bank governor under house arrest since President Buhari left office.

“Let us reframe our constitution so people cannot take Ghana lightly,” he concluded.