The Minority in Parliament has taken a swipe at the Bank of Ghana for its decision to spend GH¢23 billion to clean up the banking sector when it says a fraction of that amount could have been used to pay off the energy sector debts and contractors' indebtedness to the collapsed banks.
Addressing a press conference in Accra on Tuesday [September 3, 2019], the Minority in Parliament questioned why the government was ready to borrow the huge taxpayers’ money, equivalent to $6 billion for the clean up exercise, yet it was reluctant to use a fraction of the money to settle government’s debt to contractors who largely accounted for the insolvency of the banks.
The action of the central bank and the government, they claimed, lead to the unemployment of about 25,000 staff of the affected banks.
“Why would a government be ready to borrow GH¢14 billion to close down banks and a further GH¢7 billion to close down savings and loans companies as well as GH¢2billion to shut microfinance companies, but was not ready to use a fraction of this amount to pay off government's debts to contractors which largely accounted for this insolvency in several cases of the collapsed bank,” the Member of Parliament for Bolgatanga Central, Mr Isaac Adongo, who spoke on behalf of his colleagues at the press conference asked.
Mr Adongo said the financial sector clean up commenced by the Akufo-Addo administration in August 2017 has led to the collapse of nine universal banks, 347 microfinance companies, 39 microcredit companies or money lenders, 15 savings and loans companies, eight finance house companies, and two non-bank financial institutions.
He said the Ghanaian taxpayer could have been spared the high cost of this chaotic reform if the Bank of Ghana had listened and followed the reform programme initiated by the NDC.
Source: Daily Graphic
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YOU TALK LIKE A TYPICAL NDC HOBO, DO YOU KNOW THE AMOUNT OF MONEY THE BOG PUMPED INTPO THE BANKS SINCE 2015 ? THE OWNERS AND THE CEOS OF THE BANKS JUST INVESTED THE MONEY BY BUYING PROPERTIES ALL OVER GHANA. A WISE GOVERNMENT WILL TAKE THE STEPS THE NPP HAS TAKEN TO SAVE THE DEPOSITS OF 4.3M CUSTOMERS . THINK THINK THINK
H.E. John Dramani Mahama at the state of the nation address on February 28, 2016 said: "Mr. Speaker, Over the past 5 years there has been a proliferation of microfinance companies. These companies come under the direct supervision of the Bank of Ghana. Unfortunately, lack of effective supervision has resulted in many cases in which microfinance companies licenced by Bank of Ghana have breached the rules and created supposed pyramid schemes that have eventually come crushing down" I have few questions; 1. Who was the governor of the Bank of Ghana in 2016...? 2. Who were his deputies...? 3. Who was the finance minister in 2016...? 4. Who were his deputies...? 5. What measures did the management of BoG, the finance ministry, and the government of the day put in place to save the situation...? Respectfully, I think the likes of H.E. John Dramani Mahama, Hon. Isaac Adongo, Hon. Fiifi Kwetey, Dr. Johnson Asiamah, Hon. Seth Tekper, Hon. Cassiel Ato Forson & co. should give us a break. I doubt if they have anything good to offer Ghana regarding the financial sector clean-up.
They’ll still ‘chop’ the monies given them, who doesn’t know greedy bank CEOs and officials. If they don’t have the capital, face them off so that the customers and the government will have their peace of mind. PERIOD
The agenda is clear, OPERATIONS wipe out Ndoum ,Duffour and perceived banks own by Pro opposition folks. DOES MAKE SENSE TO BORROW TO COLAPSE BANKS WHILST THE FIRST OPTION OF GOVERNMENT PAYING ITS OBLIGATIONS TO THE BANKS COULD HAVE SAVED THE HANKS. GO TO CAPE COAST AND SEE STRUTURES OCCUPY UT BANK NOW TAKEN OVER BY DATA BANK. I PRAY NO HARD CORE PRESIDENT COLLAPSED DATABBANK IN FUTURE. VINDICTIVE PRESIDENT. I DAY 1 FRUDULENT SCANDAL, READY TO CLEAR PDS