A leading member of the opposition National Democratic Congress (NDC) is accusing the ruling New Patriotic Party (NPP) of deliberately collapsing financial institutions in the country.
Member of Parliament for Bolgatanga Central, Hon. Isaac Adongo describes as "sickening" government’s refusal to pay debts owed to these banks.
Speaking on Okay FM’s Ade Akye Abia programme, he explained that government should have intervened earlier and not allow the local banks to go into financial distress.
"A classical example is government’s indebtedness to Unibank.
"If government pays it debt owed Unibank, it will over capitalized more than any bank in Ghana," he stated.
According to him, Unibank has in excess of GHc 5.7billion in debts owed it and would not have issued with recapitalization if those monies are paid.
Unibank Insolvent
In March 20, 2018 government announced the takeover of Unibank.
Announcing the takeover, the Governor of the Bank of Ghana Dr. Ernest Addison, said UniBank is currently insolvent.
He also announced the appointment of KPMG to, over a period of six months; manage the bank to save it from collapse.
Gov't Must Pay Its Debt Owed Unibank
However, the new administrator of Unibank is asking government and its allied institutions to pay its debts owed the bank in order to prevent the local bank from total collapse.
A June 22, 2018 letter written and signed by Simon Dornoo on behalf of KPMG, to the Finance Minister said the government must pay the debts at its earliest convenience.
As at May 31, 2018, government and its agencies are said to be indebted to Unibank to the tune of 868,973,599.10.
The debt was incurred over a period spanning both the NDC and NPP government
The administrators say government must pay its debt owed the bank as one of the key measures to bringing the bank back on its feet.
Having taken charge over a period of four months, KPMG has two months left to sanitize the Bank said to be insolvent.
5 Banks Collapse
But with just two months for KPMG to conclude its work, the BoG on Wednesday announced the merger of the bank and four others - Sovereign Bank, Royal Bank, Beige Capital, Construction Bank - into Consolidated Bank Ghana Limited.
The Consolidated Bank Ghana Limited is expected to help the government in economic development.
Dr Addison attributed the decision to merge the bank to liquidity challenges.
But the NDC MP is of the firm belief that the present administration "deliberately plunged the five financial institutions into insolvency", and has potentially "created a new systemic risk to the financial sector."
Source: Isaac Kwame Owusu/Peacefmonline.com/[email protected]
Disclaimer: Opinions expressed here are those of the writers and do not reflect those of Peacefmonline.com. Peacefmonline.com accepts no responsibility legal or otherwise for their accuracy of content. Please report any inappropriate content to us, and we will evaluate it as a matter of priority. |
IN REALLY LIKE THESE NDC GUYS. THEY KNOW THEIR "STUFF". I WONDER IF BOG (BANK OG GHANA) IS PERFORMING THEIR SUPERVISORY DUTIES PROPERLY OVER THESE BFINANCIAL INSTITUTION. AFTER GRANTING A LICENCE TO A MICRO FINANCE COMPANY TO OPERATE AS A UNIVERSAL BANK IN 2017 AND IN LESS THAN ONE YEAR (2018) YOU TURN AROUND TO SAY YOU WERE MISLED BY TO GRANT THAT LICENCE AND THAT THEY (MICRO) LACK THE LIQUIDITY REQUIRED. WHAT A BIG SHAME. INCOMPETENCE AT ITS PEAK, BOG.
Mr Adongo should stop commenting on financial and economic issues. His commentaries, unfortunately run parallel to the issues at stake and expose his deep ignorance. The present top hierachy of the Central Bank is apt and very efficient. Thus, it is able to curb any menacing threat to the banking sector and help protect depositors funds. Unlike in the immediate past where such BOG officers look on for money to be printed without due process, the current ones conduct due diligence and do appropriate appraisals. In summary, most of these five distressed banks became operational during the NDC administration where proper assessments or appraisals were not performed before granting them licenses. Adongo, why blame the current government.
I urge everyone to read KPMG report on these five banks. If you do or if you did, you will realise how dubious and greedy this managers have been and has caused billions of cedis to our economy. Atleast Unibank alone cost us ghc7billion and 3billion was loan given to directors and some share holders without collateral and due process(fraudulent means). NDC members who constantly play politics with everything are seeking their own selfish interest. Get understanding with any issue that comes up and think deeper before you jump into conclusion.
It appears some people want to be heard at all times.The banks involved have had their books and records examined and evaluated by BOG then you a ***barred word*** will just go round talking about political victimization. What record or evidence do you have? Talking is cheap. The more you talk the more you make ***barred word*** of your reasoning.
People like Adongo are the reason why this country will not progress. Politics has gotten the better part of their thinking. You superintend over such fraudulent bank formation and outright disregard for banking regulations and you have the guts to open that mouth of yours and criticize the person rather cleaning your mess. IMAGINE!! Bawumia predicted all these things way back. If I were you, i will hide myself and ***barred word***.
Bolgatanga Central Constituency people, have you seen the kind of person we have sent to parliament. I said it when Amaleba came to us. I knew Amaleba is better than this g o a t of Isaac Adongo we voted for. God forbid him coming to us in 2020
Govt should lend from President Obama. He resourced and monitored the all the collapsing companies during those period of economic crises. Businesses continue in operation, jobs were not lost, production increased, the economy expanded, unemployment reduced. We are here doing opposite.
I wonder how this man calls himself an economist. how on earth can you borrow money from someone to obtain licence to set up a bank then you quickly return the lender's money to him hoping to depend on depositors money to run the bank. this does not make sense and we have an honourable member who was trained with tax payers money and currently being paid huge salary and allowances with tax payers money making noise that government is collapsing banks. mtcheeeeeeeeew.
@moda , do you term that wasted school fees ? unfortunate investment
Sometimes its pain in my neck to remember that my tax was used to pay for adongo's school fees many years ago. And now the constipation of his thinking.