Dr. Mahamudu Bawumia, the flagbearer of the New Patriotic Party (NPP), has criticized John Dramani Mahama, the National Democratic Congress (NDC) flagbearer, for his promise to restore the licenses of some financial institutions that were collapsed during the NPP government’s banking sector clean-up. Mahama made this pledge during the launch of the NDC’s manifesto in Winneba, claiming that the affected institutions were unjustly shut down.
In a recent media engagement, Dr. Bawumia expressed surprise at Mahama’s stance, explaining that the NPP’s intervention was necessary to protect the deposits of 4.6 million customers who would have otherwise lost their savings. He pointed out that some of the collapsed banks had engaged in serious misconduct, including extending loans beyond legal limits, misusing capital, and investing in private properties rather than stabilizing their financial situations.
Dr. Bawumia emphasized that the banking sector was on the brink of collapse, which made it essential to merge certain banks to prevent a widespread financial crisis. He urged Mahama to familiarize himself with the detailed reports from the Receiver and the Bank of Ghana before making further comments on the matter.
“We saved the deposits of 4.6 million bank customers who were at risk of losing their money if those banks had not been saved,” Dr. Bawumia stated. “I’m not sure if the former president has taken the time to fully understand the complexities of the banking sector clean-up. Some banks violated regulations by extending loans far beyond the single obligor limits.”
He continued, “In some cases, banks were provided with up to 1 billion cedis by the Bank of Ghana to help them recover, but instead, they worsened their financial situations. Some institutions misused the funds by setting up new businesses, like Capital Bank, which also eventually collapsed. Others took the money and invested in private properties.”
Dr. Bawumia highlighted that the NPP’s actions were necessary to prevent a total collapse of the banking system, which would have had catastrophic consequences for millions of depositors. “This was one of my greatest challenges over the last eight years. Many people didn’t realize how close we came to a complete collapse of the banking system. We had to merge many of these banks to save 4.6 million depositors.”
He concluded by advising Mahama to thoroughly review the Receiver’s report and the Bank of Ghana’s findings before making further comments. “The former president needs to understand the situation before making statements on matters he clearly doesn’t grasp. Restoring a bank’s license is not a simple task; it is subject to legal procedures.”
Source: www.kumasimail.com
