The New Patriotic Party (NPP) says it inherited a weak and fragile financial sector from the Mahama-led administration.
According to the party, at the time they assumed office, “many financial institutions had either collapsed or were on the verge of collapse.” This, the party believes, is a result of poor licensing and regulation, non-existent capital, weak corporate governance characterized by related party transactions as well as political influence peddling.
The party also accused the former administration of turning a blind eye on the happenings in the banking sector, despite its near collapse.
“The Mahama-led NDC Government and the management it put in place at the Bank of Ghana, as well as at the Securities and Exchange Commission, had enough time to address these failures, but failed to take action.”
Commenting on the financial sector clean up, the NPP elaborated on the developments thus far, in a number of tweets on its official twitter platform.
The party also revealed the measures it put in place to bring sanity to the sector which include, revoking the license of 9 banks, 23 savings and loans as well as that of 386 microfinance institutions. This according to the party, was a necessary action required to protect the entire financial system of the country and “preserve the hard-earned savings” of the Ghanaian people.
In addition to the above, the Securities and Exchange Commission (SEC), revoked the licenses of 53 fund managers on the same grounds.
Government’s decision to embark on this clean up exercise was to provide financial support and ensure the orderly exit of the collapsed institutions in order for the over 4.6 million depositors and 81, 700 investors to have access to their investments, saving over 10,000 jobs in the process.
The party has also assured that all depositors whose savings are locked in any of the collapsed financial institutions will have a 100% refund by the end of September this year.
“All depositors of the banks, savings and loans, and microfinance institutions, by the end of September this year, would have received a full, 100% refund of their deposits.”
” Employees, whose salaries and benefits had remained unpaid by the defunct institutions, have now been paid or are being paid by the Receivers”
In all the total expenditure for restoring the financial sector is GH¢21.60 billion. The party also noted that the nine indigenous defunct banks were taken over by Ghana Commercial Bank and the Consolidated Bank of Ghana.
“The overall total Government expenditure for the failed financial institutions is GH¢21.60 billion”
“The nine indigenous banks, that were closed, were to a large extent taken over by other indigenous Ghanaian banks – GCB and CBG – ensuring stronger Ghanaian ownership in the banking sector.”
Source: African Post