Economist Professor Lord Mensah has expressed his opinion that the alleged involvement of the Central Bank Governor in purchasing undervalued state lands, as cited among politicians, undermines the independence of the apex bank.

He argues that the independence of the Central Bank plays a significant role in inflationary pressures. Therefore, it is crucial for the Bank and its officials to remain independent without political interference in their operations.

In a post shared via X on September 2, 2024, the economist highlighted the surge in inflation in 2022, which reached a staggering 54.1 percent, as an example of the strong correlation between the BoG's independence and political interference.

“For a central bank governor to be named among politicians buying undervalued state lands once again compromises the independence of the bank. Central bank governors' independence has a strong correlation with inflation. I am not surprised inflation climbed as high as 54.1%,” he wrote.

Professor Lord Mensah's remarks follow the detailed account by North Tongu lawmaker Samuel Okudzeto Ablakwa of the alleged involvement of BoG officials in acquiring state lands at "unreasonable prices."

For a central bank governor to be named among politicians buying undervalued state lands once again compromises the independence of the bank. Central bank governors' independence has a strong correlation with inflation. I am not surprised inflation climbed as high as 54.1%.

— The Prof (@stigue2001) September 2, 2024

Background

The Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, has given more details of the state lands at the AU Village/La Wireless enclave which he claimed had been sold to members of the New Patriotic Party (NPP) as well as appointees of the Nana Addo Dankwa Akufo-Addo government.

The MP, over the past week, shared the names of NPP bigwigs and Akufo-Addo appointees to whom the said lands were allegedly sold between 2020 and 2022.

Speaking in a panel discussion on Good Morning Ghana, on August 30, 2024, Ablakwa gave details on the prices at which the lands were sold by the Akufo-Addo government.

He said that while the lands were valued at $700,000 per plot, they were sold by the government for less than $12,000 per plot.

According to him, the lands were sold at GH¢183,000 per plot, which is less than $12,000.

“I have been looking into their prices, how much these lands have been sold. Will you believe that land at Cantonments, the AU Village lands, do you know how much they sold it to the politicians? GH¢183,752 per plot,” he said.

He read a document on the purchase of the land as follows: “In consideration of the sum of GH¢183,752 paid by the sub-lessee to the sub-lessor as premium,” adding that the lease was "for 99 years. Meanwhile, I have been told that the market rate now is from $700,000 to about $1.5 million.”

Some of the Akufo-Addo appointees and NPP bigwigs he listed include:

1. Kate Gyamfua (NPP Women’s Organiser) — Purchased from President Akufo-Addo on 31st August, 2022.

2. Ibrahim Mohammed Awal (Minister of Tourism, Arts and Culture at the time of purchase) — Purchased from President Akufo-Addo on 30th November 2020.

3. Dr. Ernest Yedu Addison (Governor, Bank of Ghana) — Purchased from President Akufo-Addo on 31st August 2022.

4. Elsie Addo Awadzi (Deputy Governor, Bank of Ghana) — Purchased from President Akufo-Addo on 27th August 2020.

5. Maxwell Opoku-Afari (Deputy Governor, Bank of Ghana) — Purchased from President Akufo-Addo on 31st August 2022.

6. Joseph Boahen Aidoo (CEO, COCOBOD) — Purchased from President Akufo-Addo on 30th October 2020.

7. Dr. Janet Ampadu Fofie (Chairperson, Presidential Emoluments Committee) — Purchased from President Akufo-Addo on 29th June 2022.

8. Kwabena Mantey Jectey Nyarko (Board Member, Ghana Airport Company Limited) — Purchased from President Akufo-Addo on 22nd October 2022.

9. Anselm Ransford Adzete Sowah (Ghana’s High Commissioner to Canada) — Purchased from President Akufo-Addo on 14th October 2020.

10. Anna Asare Oduro (Former NPP Women’s Organiser, Holland Chapter) — Purchased from President Akufo-Addo on 25th February 2021.

11. Ken Ofori-Atta’s Enterprise Life Assurance (Serving Finance Minister at the time of transaction) — Purchased from his cousin, President Akufo-Addo on 15th December 2023.

12. Georgina Theodora Wood (Former Chief Justice) — Purchased from President Akufo-Addo on 15th October 2020.

13. Akwasi Aboagye Atuah (Akufo-Addo’s appointed Board Chair of SIC at the time of transaction) — Purchased from President Akufo-Addo on 14th October 2020.

14. Dr. Janet Ampadu Fofie (Chairperson, Presidential Emoluments Committee) — 2nd purchase on 14th October 2020 & 3rd purchase on 30th October 2023 from President Akufo-Addo.

15. Kwabena Mantey Jectey Nyarko (President Akufo-Addo’s appointee to the board of the Ghana Airport Company Limited) — 2nd purchase on 20th December 2022 from President Akufo-Addo.

MA