NDC didn’t do much to resolve banking crises – Kojo Oppong Nkrumah  

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Kojo Oppong Nkrumah, Minister for Information, says the erstwhile Mahama administration did not do much to resolve the banking crisis.

This statement by the Minister comes after the Vice President of the Republic, Dr Mahamudu Bawumia, assured depositors whose funds have been locked up in regulated but defunct financial institutions of full repayment of locked up funds.

Speaking at the Great Hall of the Kwame Nkrumah University of Science and Technology as part of the two-day Government Townhall Meeting and Results Fair in Kumasi, Ashanti Region, on Tuesday, 11th February, 2020, Vice President Bawumia said Government empathises with depositors, who have endured anguish and hardships through no fault of theirs.

Bank of Ghana revoked the licences of a number of banks, microfinance and savings and loans companies, leading to an unfortunate loss of jobs and in some cases, the locking up of depositors’ funds in 2019.

“We (Akufo-Addo government) inherited a financial system that was weak and fragile with several institutions that had collapsed or were on the verge of collapse. The Bank of Ghana in cleaning up and strengthening the financial sector, revoked the licenses of many banks, savings and loans and microfinance companies. Some have criticized the action of the central bank for a variety of reasons.

“(But) first of all, let us remember that the failures of financial institutions that we have witnessed recently, were a direct result of a system of poor licensing, non-existent capital, weak corporate governance characterized by related party transactions, political influence peddling, cronyism, among other things.

“The NDC government and the previous management of the Bank of Ghana had ample time to address impending failures. They were aware of the problems in 2015 in the case of banks and as far back as 2012 in the case of savings and loans and micro finance companies. Even in opposition, I alerted the country that on the basis of available data, 8 banks were likely to collapse but they refused to act,” Bawumia said at the meeting.

Justifying the Vice President’s statement on Atinka FM’s AM Drive with host Ekourba Gyasi, Kojo Oppong Nkrumah, Minister for Information and Member of Parliament for Ofoase Ayirebi in the Eastern Region stated that but for the timely intervention of the Nana Addo administration the banking crises would have escalated.

Banking expert, Dr. Kwasi Atuahene, who also spoke to Ekourba Gyasi has however asked the NPP not to count measures taken to resolve the banking crises as an achievement since it’s an obligation.

Ghana | Atinkaonline.com | Vivian Adu Boatemaa