The former president, John Mahama has said ¢13 billion more is needed to complete government’s banking sector cleanup.
Mr Mahama during a Facebook live broadcast on Thursday, said the ¢15 billion approved by Parliament to support the cleanup has not served its purpose due to government’s mishandling of the exercise.
“Our estimates show that going by the reckless path this government chose with its attendant job losses and collapse of businesses, an additional ¢13 billion will be required to complete the exercise of the financial sector cleanup,” he said.
As part of its efforts to restore confidence in the banking and specialised deposit-taking sectors, the Bank of Ghana embarked on a clean-up exercise in August 2017 to resolve insolvent financial institutions whose continued existence posed risks to the interest of depositors.
Giving reasons for the banking sector clean-up, the Deputy Chief Manager of the Banking Supervision Department of Bank of Ghana, Mustapha Sarbeng, said some the financial institutions granted huge unrecoverable loans and engaged in excessive high-risk undertakings coupled with poor corporate governance in the face of low capital.
In all, nine universal banks, 347 microfinance companies, 39 microcredit companies, 15 savings and loans companies, eight finance house companies and two non-bank institutions were closed. The licenses of 53 fund management firms were also revoked.
President Akufo-Addo in his Christmas message promised to pay customers of these financial institutions in full.
But Mr Mahama, who is the National Democratic Congress’ flagbearer, wondered how government will make these payments when no financial provisions were made for it.
“Government did not make any provisions for the cost of the banking sector crisis in both the 2020 budget and the two-year Medium Term Expenditure Framework (MTEF).
Mr Mahama said although government had no plan on how to handle the financial sector clean up, it deliberately undertook the exercise to “dishonestly lower the projected budget deficit and give a false picture of satisfactory fiscal performance in 2020 which is an election year.”
He accused President Akufo-Addo of being hard-hearted to the plight of Ghanaians because, his only focus is on winning elections and not the impact his decisions will have on the populace.
He claims government has no plans to pay depositors monies in full as President Akufo-Addo stated but promised to do to pay the disgruntled customers in the shortest possible time if he is made president.
Latest Stories
-
19 steps for getting over even the most devastating breakup fast
2 hours -
8th Ghana CEO Summit launched with focus on AI transformation, economic diversification
2 hours -
Prof Opoku-Agyemang has not been given a fair appraisal – Ablakwa
3 hours -
Rainstorm wreaks havoc in Keta and Anloga districts, residents count their losses
3 hours -
Global Plastics Treaty negotiations begin in Ottawa as countries converge on phasing out problematic plastic uses
3 hours -
Support energy alternatives adoption to sustain businesses – GUTA tells government
3 hours -
11th DRIF opens in Accra with a call on governments to focus on digital inclusion
3 hours -
Stakeholders outline plans at RE4C Coalition’s General Assembly in Accra
3 hours -
Women Need ‘shock observers’ for active political participation – Ex-Bauchi Assembly Member
3 hours -
2024 polls: Stop fighting over positions in Mahama’s next government – Asiedu Nketiah
4 hours -
Although people may not always listen to the lyrics, there’s still a market for rap in Ghana – E.L.
4 hours -
Passengers appeal to transport operators to officially announce new fares
4 hours -
Damongo: About 400 NPP Members resign over Minister’s alleged meddling in chieftaincy affairs
4 hours -
Next NDC government will pay special attention to women – Naana Opoku-Agyemang
4 hours -
Amerado is singing and it’s good he’s doing that – Lyrical Joe
4 hours