Banking sector clean up was not targeted at any individual – Ofori-Atta

Finance Minister-designate Ken Ofori Atta has refuted claims that the banking sector cleanup undertaken by the Akufo-Addo administration targetted specific individuals.

According to him, the research on the banks and the rot in the sector had already been identified by the previous management of the Bank of Ghana.

Therefore, after taking over, President Akufo-Addo’s administration simply followed through with the processes for the cleanup.

“To be clear that this was not a policy that was looking to target individuals. The rot was known, cleaning the stables had to be done and we took up the challenge for that. We have seen the result have been good so far.”

Referencing the 2016 State of the Nation Address he said the previous government had noticed the problem before the NPP government took over in 2017.

“The AQRs (Applied Quantitative Research) were done prior to the time we came and even as the former President articulated the problem so clearly, there was still the issue of will and courage to move forward with that and that is what prez came to do with the new management of Bank of Ghana.”

Mr Ofori-Atta said that the government would have appreciated the support of the minority on the cleanup especially since the problem had been identified during their time in power.

His comment comes after former Finance Minister Dr Kwabena Duffuor and the former CEO of UT Bank petitioned Parliament over the Bank of Ghana (BoG)’s revocation of their banking license.

Mr Duffuor also wants an inquiry into the appointment of an Official Administrator of Unibank Ghana Limited, as well as the circumstances surrounding the revocation of the bank’s license in 2018.

He is also asking Parliament to direct the restoration of the banking license of Unibank Ghana Limited by BoG and remedying the harms done to the shareholders’ property rights as a result of the conduct of the central bank.

On his part, the former UT Bank boss, Prince Kofi Amoabeng has petitioned the Legislature to conduct an investigation of the conduct of the central bank and Ghana Stock Exchange (GSE) for the revocation of UT Bank’s license and delisting the bank without due regard to the rules of Administration Justice guaranteed under Article 23 of the 1992 Constitution.

The disgruntled CEO also Parliament to direct the restoration of his bank’s license and the remedying of the harms done to the shareholder’s property right as a result of the conduct of the BoG.

He is being accused by the state of mishandling depositors’ cash by engaging in fictitious and unlawful activities which led to the collapse of UT Bank in 2017.

Mr Kofi Amoabeng also wants Parliament to give other directives it deems fit.

Meanwhile, Speaker of Parliament, Alban Bagbin has recommended the creation of a seven-member committee to investigate the Bank of Ghana (BoG) and the Ghana Stock Exchange (GSE) over the revocation of licenses of UT Bank and UniBank.

The Majority leader, Mr Osei Kyei-Mensah-Bonsu, however, raised objections to the admissibility of the petition but the Speaker, Alban Bagbin went on to admit the petitions by saying he was properly clothed by law and the Standing Orders of the House to act on it.