NPP government spent GH¢18 billion to collapse banks that needed GH¢9 billion to survive – Muntaka

Minority Chief Whip in Parliament, Hon. Mohammed-Mubarak Muntaka has revealed that, the New Patriotic Party (NPP) led government has so far spent GH¢18 billion to collapse local banks in the country that needed just GH¢ 9 billion injection for them to survive.

The New Patriotic Party (NPP) since it took power in the year 2017 succeeded in collapsing some local banks in the country on grounds that, most of them could not meet regulations set by the Bank of Ghana and the Security and Exchange Commission (SEC).

At a point, the government was able to consolidate some of these banks calling birthing the Consolidated Bank Ghana Limited with Royal Bank, Beige Bank, Unibank, Sovereign Bank and Construction Bank being aggregated.

Thereafter, some of these local banks and financial institutions have been collapsed out rightly by the Bank of Ghana.

But speaking in an interview on Kumasi based Pure FM monitored by MyNewsGh.com the Member of Parliament for Asawase Costituency in the Ashanti Region took on the move by government describing it as senseless.

“The banking crisis doesn’t make sense to me. So far government has spent GH¢18 billion to collapse these banks while in the actual sense the banks needed GH¢ 9 billion to survive. I don’t understand this, Mr. Muntaka chided.

“But the map is that by the time they are done, they would have spent GH¢22 billion”, he added.

According to him, though government of Ghana has claimed its actions is to sanitize the banking industry, it cannot absolve itself of blame for the collapse of these banks.

“This is because, banks operate on confidence hence immediately you begin mounting pressure on them and spreading speculation without putting in arrangement they will collapse”, the legislator stressed.