SAVINGS AND LOANS AND MICROFINANCE DEPOSITORS WILL ALSO GET 100% OF THEIR DEPOSITORS – VP BAWUMIA
The Vice President of the Republic, Dr Mahamudu Bawumia, has assured depositors whose funds have been locked up in regulated but defunct financial institutions of full restitution of their funds.
Speaking at the Great Hall of the Kwame Nkrumah University of Science and Technology as part of the two-day Government Townhall Meeting and Results Fair in Kumasi, Ashanti Region, on Tuesday, 11th February, 2020, Vice President Bawumia said Government empathises with depositors, who have endured anguish and hardships through no fault of theirs.
In 2019 the Bank of Ghana, in a series of moves to clean up the weak and messy financial sector, revoked the licences of a number of banks, microfinance and savings and loans companies, leading to an unfortunate loss of jobs and in some cases, the locking up of depositors’ funds.
To assuage their pain, government has pledged to restore 100% of their locked up funds, once they have been verified. In a further move to address residual pain from previous collapses, Government will secure the funds and pay up the victims of DKM, who lost part of their investments after the Bank of Ghana suspended the operations of the DKM in 2015, Vice President Bawumia added.
The Vice President accused the previous government of playing the Ostrich, burying its head in the sand and papering over the cracks, which were noticeable as far back as 2012.
“We (Akufo-Addo government) inherited a financial system that was weak and fragile with several institutions that had collapsed or were on the verge of collapse. The Bank of Ghana in cleaning up and strengthening the financial sector, revoked the licenses of many banks, savings and loans and microfinance companies. Some have criticized the action of the central bank for a variety of reasons.
“(But) first of all, let us remember that the failures of financial institutions that we have witnessed recently, were a direct result of a system of poor licensing, non-existent capital, weak corporate governance characterized by related party transactions, political influence peddling, cronyism, among other things.
“The NDC government and the previous management of the Bank of Ghana had ample time to address impending failures. They were aware of the problems in 2015 in the case of banks and as far back as 2012 in the case of savings and loans and micro finance companies. Even in opposition, I alerted the country that on the basis of available data, 8 banks were likely to collapse but they refused to act,” Vice President Bawumia recalled.
“The swift and decisive action taken by the new management team at the Bank of Ghana provided relief for the financial system as a whole through the funds provided by Government for depositor payouts.”
Over a million depositors have had access to their deposits already and over 7,000 jobs have been saved as a result of employees taken on by GCB, CBG, or the receivers, the Vice President noted.
“Employees whose salaries and employee benefits had been unpaid by the defunct institutions have been paid or are being paid by the receivers. Government has already spent over Ghc 13 billion paying depositors of banks and other financial institutions, and the President has given the assurance and I will like to repeat that no depositor of a bank, savings and loan or microfinance company would lose even a pesewa of their deposits.
“ALL depositors of these institutions will receive a 100% refund of their deposits since this was no fault of their own. Government has asked the receiver (working with the Bank of Ghana) to expedite the validation and payment of depositors so that all depositors will receive their monies after validation.”
He continued: “I will also like to add that this refund will also extend to customers of DKM who have not as yet received the full refund of their deposits. We are therefore cleaning up the mess the NDC created in the financial sector.”
[2/11, 13:12] General Sec Jb: 11TH FEBRUARY, 2020
FOR IMMEDIATE RELEASE
THE DATA SPEAKS FOR ITSELF, WE HAVE DELIVERED AND DELIVERING 78% OF OUR PROMISES – VP BAWUMIA
The Vice President of the Republic, Dr Mahamudu Bawumia, has strongly defended the records and achievements of the Nana Akufo-Addo administration since it assumed office in January, 2017.
Using a combination of graphs, tables and evidence-based presentations, Vice President Bawumia outlined a long list of achievements chalked by the Akufo-Addo administration, based on its 2016 manifesto promises, and challenged anyone to produce any facts to dispute the record.
“The data speaks for itself,” Dr Bawumia declared, when he addressed participants at the Government Townhall Meeting and Results Fair underway in Kumasi, Ashanti Region, on Tuesday, 11th February, 2020.
Taking the audience through the daunting challenges the nation faced when the Akufo-Addo administration took office, including declining economic growth, high inflation rate, high interest rates, high fiscal deficit, a weak and collapsing financial system, high unemployment, a health insurance scheme on the verge of collapse, four years of dumsor with its costs, and many parents unable to afford school fees for their children, Vice President Bawumia said the NPP government had faced the challenges head-on, and had delivered on 78% of its manifesto promises.
“Notwithstanding the difficult economy we inherited we had to get on with it and start to fix the problems. We were cognizant of our many promises. In fact, at the direction of President Akufo-Addo, we put together a dashboard of manifesto promises immediately after we were declared winners of the 2016 election, and before we were sworn into office. We have been using this dashboard to track our manifesto promises since” the Vice President revealed.
“The challenge was huge. How could an economy that could not pay even teacher and nursing training allowances, suddenly deliver lower taxes, restore teacher and nursing training allowances, create jobs, implement free senior high school education, NABCO, Planting for Food and Jobs, One Village One Dam, One Constituency One Ambulance, reduce electricity prices, formalize the economy, industrializing the economy, reducing the cost of doing business, etc. while at the same time reducing the budget deficit and the rate of borrowing? It seemed an impossible task and our opponents were emphatic that we could not fulfill our promises. But we were very confident that with good economic management and by the grace of God, we could make what seemed impossible possible.
“The data and the evidence is clear that we have largely met our manifesto promises. We have delivered and are delivering on over 300 of our promises, and we are on course to do even more,” he confidently declared.
Vice President Bawumia described the fundamentals of Ghana’s economy as “strong”, insisting “the data shows that Ghana’s macroeconomic fundamentals are strong. Indeed, the strength of Ghana’s fundamentals was confirmed recently by Moody’s Ratings which changed Ghana’s sovereign ratings from B3 with a stable outlook to B3 with a positive outlook. This is unprecedented for an election year.
“For the first time in over two decades, Ghana’s trade balance recorded a surplus in 2017, a larger surplus in 2018, and an even larger surplus in 2019.
“Economic growth has been restored. Growth for 2017 was 8.1%, 6.8% in 2018 and a projected 7.0% in 2019, significantly exceeding the average sub-Saharan African (SSA) growth and amongst some of the fastest growing economies in the world for the last three years.
“In the history of the Fourth Republic, Nana Akufo-Addo has the best performance for any first term government since 1992. All the worst performances happened under the NDC which holds the record for first, second and third worst performances.
“The future is very bright. That is why we are asking the good people of Ghana to give Nana Akufo-Addo and the NPP ‘four more to do more for you’”.