Finance ministry set to pay customers of defunct financial institutions – Bawumia

Vice President, Dr. Mahamudu Bawumia, has revealed that the Ministry of Finance in the coming days would reimburse clients of financial institutions liquidated by the Securities and Exchange Commission (SEC) during the financial sector clean-up.

According to the Vice President, the move is to cushion affected investors while ensuring transparency and accountability within the financial market.

“It looks like the Minister of Finance is looking forward to making some payment to customers of the liquidated companies

“When it comes to Gold Coast Securities and others, it is something on our agenda and I believe that the Ministry of Finance will look at it. We have engaged affected customers and we look forward to the payments,” Dr. Bawumia said while addressing professional bodies in Kumasi as part of his Ashanti Region tour.

The Vice President, however, stated that, payment to be made to affected investors is borne out of sympathy as the government is not responsible for making such payments.

“Technically, government is not responsible but out of empathy and sympathy for the people who invested in some of these institutions, the minister will make some of these payments”.

The government in 2017 undertook the banking sector clean-up under the supervision of the Finance Minister, Ken Ofori-Atta.

The exercise saw a reduction in the number of banks from 34 to 23, whilst 347 microfinance institutions, 15 savings and loans and eight finance houses had their licences revoked.

A number of the institutions that had the licences revoked were found to have varying degrees of corporate governance lapses.

EAN/FNOQ

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