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Business News Thu, 5 Sep 2019

Poor BOG supervision caused banking crisis – Mahama confesses

Former President and NDC Flagbearer John Dramani Mahama has been very vociferous about how the Akufo-Addo administration has handled the banking sector reforms but a Parliamentary record has exposed his inconveniencies.

According to him, the current government should have concentrated on injecting more cash into the struggling banks in order to keep them afloat, instead of collapsing and consolidating them.

In his many declarations, Mr Mahama has postulated that the methodology used to sanitize the banking sector leaves a lot to be desired and that it has led to job losses of what he describes as innocent employees in the banking sector.

This accusation of the supposed collapse of the banking sector by the Akufo-Addo government is being heavily propagated by members of the opposition party’s communicators.

Available documents, however, indicate that former President John Mahama admitted to the very same banking sector he accuses Akufo-Addo for supervising.

In the 2016 State of the Nation’s Address delivered in Parliament by the former president, the NDC flagbearer made these admissions;

“Mr Speaker, over the past five 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 licensed by Bank of Ghana have breached the rules and created supposed pyramid schemes that have eventually come crashing down”

The former President, by this statement in the 2016 version of the State of the Nation’s Address, confessed to the banking sector crumbling down under his tutelage.

This admission as captured in the former president’s own speech makes nonsense of his accusation that the Presidency of Akufo-Addo is to blame for the crisis we have witnessed in the banking sector.

Though he has chosen to be dishonest in his commentaries on the banking sector reforms, his own words have come back to haunt him.

Source: abcnewsgh.com
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