Retiree sues ex-Governor Addison, BoG over cedi depreciation
A Ghanaian retiree has dragged the Bank of Ghana (BoG) and its immediate past Governor, Dr Ernest Addison, to court, citing gross negligence in the management of the Ghana Cedi.
In a writ filed at the Accra High Court, the plaintiff, Balbir Violet Allan, a resident of Adabraka, avers that when the Governor assumed office in February 2017, the cedi-dollar exchange rate was GH¢4.26 to $1.
However, by February 3, this year — when the Governor proceeded on terminal leave — the rate had surged to GH¢15.49 to $1, representing a depreciation of approximately 264 per cent.
The plaintiff claims that the significant decline in the value of the cedi has caused substantial losses in the value and purchasing power of her investments in government treasuries, particularly ESLA Bonds.
In the suit, filed by lawyer for the plaintiff, John E. Baiden of The Liberty Institute Law Firm, the plaintiff argues that while the law mandated the Bank of Ghana, through its Governor, to provide the state with a stable currency, the second defendant allegedly chose to allow the value of the cedi to be determined solely by market forces, including demand and supply on the foreign exchange (forex) markets, leading to its instability and volatility.
It is the case of the plaintiff that the former Governor allegedly failed to develop or implement any credible plan consistent with the law to stabilise the currency.
As Governor, Ms Balbir said he also served as the Chairperson of the BoG’s Board and its Monetary Policy Committee, which was legally responsible for formulating and executing monetary policy measures, including efforts to stabilise the currency.
“The second defendant has so controlled and conducted the affairs of the first defendant in a manner that extensive harm has befallen the cedi, including that of the plaintiff’s, as the dictates of justice would justify the legal mandate of the 1st defendant are made coterminous with the mandate of the second defendant who is not only the Governor but
Chairperson of the first defendant’s Board and its Monetary Policy Committee,” the writ stated.
The plaintiff indicated that she formally notified the former Governor on May 30, 2024, of her intention to sue if no efforts were made to restore the cedi’s soundness and value.
However, no remedial action was taken, prompting the current legal action.
Reliefs
Ms Balbir said that unless an order to recover her losses was granted by the court, she would have no recourse for recovery or restitution of the lost value of investment capital.
She is, therefore, asking the court to lift the corporate veil shielding the Bank of Ghana and to hold both the bank and the former Governor jointly and severally liable for her investment losses.
Among other reliefs, the plaintiff is seeking a declaration that the second defendant had been grossly negligent, allegedly in the management of the Ghana Cedi through the first defendant (BoG).
Also, a declaration that the exchange rate losses she had suffered were enforceable against both defendants, jointly and severally.