By Justice Agbenorsi
A Ghanaian retiree has taken the bold step of dragging the Bank of Ghana (BoG) and its former Governor, Dr Ernest Addison, to court over what she describes as gross negligence in managing the cedi, leading to severe investment losses.
According to the plaintiff, Madam Balbir Violet Allan, a resident of Adabraka, the dramatic depreciation of the Ghanaian cedi under the leadership of Dr Addison severely eroded the value and purchasing power of her investments, particularly in government treasuries like the ESLA bonds.
Her legal counsel, John E. Baiden, strongly argued that the Bank of Ghana must be held accountable for its actions or inactions which have had real and damaging consequences for ordinary citizens like his client.
“It is very important that the Bank of Ghana gets to appreciate that their actions or inaction have consequences and that people who have suffered must have recourse,” counsel Baiden emphasized, rejecting a motion by BoG lawyers seeking to dismiss the case for not stating a reasonable cause of action.
The defendants’ legal team, led by Savior Kudze, had moved the High Court to strike out the suit, citing that the plaintiff’s claims were non-justiciable and lacked legal merit. Kudze argued that the central bank owed no duty of care to the plaintiff due to the absence of any contractual relationship, and further stated that matters involving exchange rate fluctuations are beyond the competence of the courts.
However, Baiden countered that the defendants’ motion was procedurally flawed. He noted that under Order 11 Rule 18 of C.I. 47, the BoG and its co-defendant failed to enter a conditional appearance and did not specify which parts of the plaintiff’s pleadings they wanted to strike out contrary to legal procedure.
Baiden insisted that the central bank had a statutory obligation to maintain currency stability and that the former Governor’s decision to allow market forces to control the cedi without a proper plan was a clear dereliction of duty.
Background of the Case
The case stems from a writ filed at the Accra High Court in which Madam Allan contends that Dr Addison took office in February 2017 when the cedi-dollar exchange rate was GH¢4.26 to $1, and exited in February 2025 with the exchange rate at GH¢15.49 to $1 a staggering 264% depreciation.
She believes this decline was not inevitable, but a result of negligence and failure to apply stabilizing policies by the BoG under Dr Addison’s leadership. According to her statement of claim, the depreciation directly impacted the real value of her retirement savings and government investments.
What the Plaintiff Wants
Madam Allan is calling on the court to pierce the corporate veil that protects the central bank and hold both the BoG and Dr Addison jointly and severally liable for the value she lost due to the cedi’s depreciation. Among the reliefs she is seeking are:
A declaration that Dr Addison was grossly negligent in his role.
A declaration that the investment losses suffered due to currency depreciation are enforceable against both defendants.
An order for compensation to recover the lost value of her investments.
The High Court, presided over by Justice Audrey Kocuvie-Tay, has adjourned the case to July 22, 2025 for further proceedings.
Read also: https://insightghana.com.gh/?p=48546
