The Bank of Ghana (BoG) has filed a motion requesting the Accra High Court to strike out a lawsuit brought against the former Governor, Dr Ernest Addison, and the central bank itself.
This comes in the wake of a lawsuit filed by Balbir Violet Allan, a resident of Adabraka, accusing the former governor and the Bank of Ghana of gross negligence in the country’s currency management, according to Graphic Online.
The motion, which is scheduled to be moved by counsel for the Bank of Ghana, being the first defendant on Thursday, May 15, 2025, also states that the application constitutes an abuse of the court’s process, as outlined in the accompanying affidavit, and seeks any other orders the court may consider appropriate.
Dr Addison however, is the second defendant in the lawsuit.
Background
In her lawsuit against the Bank of Ghana, the plaintiff, Violet Allan, stated that the cedi-to-dollar exchange rate surged significantly from GH¢4.26 to $1 in February 2017, when Dr Addison assumed office as Governor, to GH¢15.49 to $1 by February 2025, when he proceeded on terminal leave, representing a depreciation of approximately 264 percent.
Graphic further reports that the plaintiff attributes her losses on investments in government treasuries, particularly ESLA Bonds, to the cedi’s depreciation, which she emphasises has significantly eroded its purchasing power and overall value.
In the suit, filed by her lawyer John E. Baiden of The Liberty Institute Law Firm, the plaintiff argues that although the law mandates the Bank of Ghana, through its Governor, to ensure a stable national currency, the second defendant allegedly opted to let the value of the cedi be dictated solely by market forces — such as demand and supply in the foreign exchange (forex) markets — resulting in instability and volatility.
Violet Allan maintains that the former governor, Dr Addison, allegedly failed to develop or implement any credible plan, in line with the law, 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 stability and value. However, as no remedial action was taken, she proceeded with the current legal action.
Among the reliefs she is seeking are a declaration that the second defendant, Dr Addison, was negligent in the management of the cedi, as well as a declaration that the losses she incurred due to the exchange rate fluctuations are enforceable against both defendants, jointly and severally.
Source : Graphiconline
