The legal
battle against Dr. Johnson Asiama, a former Deputy Governor of the Bank of
Ghana, has dragged on for over seven years, curtailing his freedom and imposing
significant financial burdens in legal fees. The charges levied against
him—breach of the Bank of Ghana Act and causing financial loss—have not been
substantiated, yet the prosecution persisted despite the fact that no financial
loss occurred.
More
significantly, Dr. Asiama became the target of political persecution because he
defended the legitimacy of certain financial decisions made under the National
Democratic Congress (NDC) government and pushed back against politically
motivated accusations.
The New
Patriotic Party (NPP) government, which took over in 2017, saw his actions as
defiant and singled him out for legal harassment. His prosecution was never
about justice; it was about punishing a public official who refused to betray
his principles. This article argues why the case against Dr. Asiama was a
politically motivated witch hunt that should have never happened.”
The political context of the prosecution
Following the
NDC’s loss in the 2016 general elections, the incoming NPP government embarked
on a series of actions aimed at discrediting key figures from the previous
administration. Dr. Asiama, who had been vocal in defending the policies of the
NDC-led government, found himself at the centre of this crackdown. Instead of
being recognized for his role in maintaining financial stability, he was
targeted as part of a broader effort to demonize officials associated with the
previous government.
The liquidity
support measures he authorized were not personal decisions but official Bank of
Ghana policies designed to prevent systemic collapse. However, because he did
not distance himself from the NDC, he became a convenient scapegoat. The
selective nature of his prosecution further underscores the politically charged
motives behind the case.
The context of the transactions
Between 2015
and 2016, UNIBANK was experiencing severe liquidity constraints due to a
confluence of factors, including delayed government payments for road contracts
and energy sector-related exposures. Several banks, including UNIBANK, faced
imminent failure if no intervention was provided. The Bank of Ghana, in its
role as the lender of last resort, acted decisively to stabilize the banking
sector by providing liquidity support. These interventions were not arbitrary
but followed recommendations from the Banking Supervision Department and
adhered to laid-down processes within the Bank of Ghana.
At the time,
UNIBANK’s liquidity crisis was exacerbated by large withdrawals from
institutions such as COCOBOD, VRA, EDC, and Databank. UNIBANK had significant
government receivables, estimated at GH¢850 million, which it relied on for
future liquidity. Given this situation, the Bank of Ghana granted liquidity
support based on standard procedures, ensuring the stability of the financial
system. This was a systemic intervention rather than a personal decision by Dr.
Asiama.
No financial loss was incurred
The fundamental
flaw in the case against Dr. Asiama is the assertion that his actions resulted
in financial loss to the state. This claim is demonstrably false. The GH¢150
million facility extended to UNIBANK has been repaid by UMB Bank, a fact that
has been duly presented in court. Similarly, the GH¢413.09 million extended to
UT Bank was not squandered but utilized to fulfil critical financial
obligations, including interest payments to the Bank of Ghana, monthly reserve
requirements, and international loan settlements to prevent Ghanaian banks from
being blacklisted by correspondent banks.
Furthermore,
out of the GH¢413.09 million, a significant portion (GH¢289.98 million) was
retained by the Bank of Ghana itself for various payments, further proving that
the money was not mismanaged. The CEO of UT Bank, under cross-examination,
confirmed that he submitted regular utilization reports to the Bank of Ghana, indicating
that the funds were properly accounted for. Therefore, the charge of causing
financial loss is baseless and should be dismissed long time.
Selective prosecution and the role of other officials
A major concern
regarding Dr. Asiama’s prosecution is the selective nature of the charges. The
liquidity support provided to UNIBANK and UT Bank was an official decision by
the management of the Bank of Ghana, approved at the highest levels. Other
Deputy Governors and senior officials played key roles in these decisions, yet
Dr. Asiama remains the only individual facing legal action.
For instance,
the GH¢200 million liquidity support granted to UNIBANK in December 2015 was
approved by then-First Deputy Governor Mr. Millison Narh. Similarly, the GH¢450
million liquidity support in March 2016 was signed off by Dr. Abdul-Nashiru
Issahaku, the Second Deputy Governor at the time. Both approvals followed
recommendations from the Banking Supervision Department, reinforcing the fact
that these were institutional decisions rather than personal actions by Dr.
Asiama.
If these
liquidity supports were illegal, then all officials involved, including those
who approved similar transactions before Dr. Asiama’s tenure, should also be
held accountable. However, targeting only Dr. Asiama suggests a prejudicial
approach that lacks fairness and consistency in the application of justice.
Compliance with banking procedures
Dr. Asiama’s
actions were in line with standard banking procedures. The Bank of Ghana had
previously provided similar liquidity support to banks facing distress,
adhering to international best practices for central banking. These
interventions were not reckless but were part of efforts to ensure financial
stability.
Moreover, the
decision to extend liquidity support was based on an official Board Resolution
dated September 19, 2016, which mandated the Bank of Ghana to support
systemically important banks for up to three years to restore regulatory
compliance. The resolution specifically delegated authority to the management
of the Bank of Ghana to approve liquidity support when necessary.
Therefore, Dr.
Asiama was simply executing his official duties under the mandate of the
central bank, and his prosecution for doing so is entirely unjustified.
The human cost of the political persecution
Beyond the
legal and financial implications, the prolonged prosecution of Dr. Asiama has
had a profound personal toll. For the past seven years, his freedom has been
significantly curtailed, and he has had to endure enormous financial costs in
legal defence. This has not only affected him personally but has also impacted
his family. At this point, with no concrete evidence of wrongdoing, it is
inhumane and unjust to continue prosecuting a man who was merely carrying out
official duties in good faith. Justice should not be weaponized, and legal
processes should not be used as a tool for political vendettas.
Conclusion
The case
against Dr. Johnson Asiama was never about justice it was a political witch
hunt orchestrated by the NPP government as part of a broader attempt to silence
and punish officials associated with the previous NDC administration. The
liquidity support provided to UNIBANK and UT Bank was an official Bank of Ghana
policy designed to stabilize the financial sector. No financial loss occurred,
and the transactions were fully accounted for. Furthermore, his prosecution was
clearly selective, as other officials who approved similar liquidity support
packages remain uncharged.
Ghana must move
beyond political divisions and focus on harnessing the expertise of capable
professionals who can help drive national progress. Dr. Asiama is a seasoned
economist whose objective approach and commitment to sound financial policies
can contribute meaningfully to solving the countrys economic challenges.
As a nation, we
should be encouraging problem solvers from all backgrounds to work together for
a stronger and more stable economy. Justice demands fairness, but beyond that,
Ghana needs a future where competence, not political affiliation, determines who
gets to serve. It is time to drop this case and embrace a path toward a united,
forward-looking nation.
>>>the writer is an economic policy and financial analyst.
He can be reached via waxson.waxson@gmail.com
