GHANA- Tuesday, July 28, 2020/ https://africanpostonline.com/— Flagbearer of the National Democratic Congress (NDC), John Mahama, says the NDC will repay customers whose funds are locked in defunct banks in their next administration.
He said the next government of the National Democratic Congress ( NDC) would not put in place any long-term payment arrangements that would further deteriorate the living conditions of the victims of the collapsed financial institutions.
Speaking at an event to officially outdoor his running mate to the country, the former President said, his “heart goes out to the many who have been affected by this Government’s unjustifiable collapse of Ghanaian-owned financial institutions.”
Mr Mahama also mentioned that, it is heart-wrenching for government officials to justify the huge amounts being spent to manage the impact of the collapse, now put at ¢21 billion.
“I weep for the many who have lost their jobs, the many who have lost their businesses, the many who have lost their livelihood among others. I pledge on behalf of the NDC that we shall pay within one year all who have funds locked up with the collapsed financial institutions. Within one year. I promise!” he said amid cheers from supporters.
Mr Mahama said, as has been implemented in other economies, a Financial Services Authority will be formed by the next NDC administration to ensure that consumer financial markets function for customers, providers and the economy in general.
According to him, “the Authority will oversee all financial products and services that are offered to consumers, and will effectively and efficiently prevent and stop the challenges that have confronted customers of Menzgold, DKM among others.
“We will restore Ghanaian indigenous investment in the banking and financial sector through a tiered banking structure in order to restore viable credit sources for Ghanaian SMEs. We will make amends for those whose businesses were collapsed due to political victimisation,” he added.
In 2017, the Bank of Ghana ( BoG) embarked on an ambitious reform agenda to improve the regulatory and oversight system for the more resilient banking industry. The clean up led to the collapse of 16 universal banks and rendered a total of 192 microfinance institutions insolvent which resulted in about 155 of these microfinance institutions to cease operating. This situation has left customers of these defunct banks stranded over their locked up funds in these financial institutions.
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I’m Deborah Aba Narkoah. I’m an avid reader, writer and public speaker.
