TOGBE AFEDE IS WRONG; THE BANK OF GHANA ADOPTED THE BEST METHOD TO CLEAN-UP THE MESS MAHAMA LEFT BEHIND IN THE BANKING AND FINANCIAL SECTOR
It is not as though some of us exult in subjecting the hallowed chieftancy institution to critical scrutiny, however, when a prominent chief dabbles in partisan politics and seeks to always speak favourably in support of one political party to the detriment of another, such tendencies ought to receive attention.
Togbe Afede XIV in a televised discussion with CitiTV indicated that the clean-up exercise on the banking sector was ill-managed.
In his estimation, the methodology or approach was not the best and that a different strategy could have been used to resuscitate the sector.
Spending over GHC20 billion in the clean-up exercise was not a good utilization of our resources since same could have been injected into the various struggling financial institutions to revive them.
Togbe Afede’s position smacks of extreme partisanship as it fails to look at the merits and demerits of his proposition as against the one adopted by the Bank of Ghana.
It is trite knowledge that the very proposition the President of the National House of Chiefs promulgated formed the path the Mahama administration used in addressing the volatilities experienced in the banking sector.
Billions of monies were sunk into those struggling banks but that did very little in stemming the difficulties in the sector. Mahama kept on injecting cash into some of those banks, the banks kept on misusing the funds and channeled them into ventures which were not profitable.
The antidote Togbe Afede believes should have been used was used by Mahama and the results were catastrophic.
It made little sense to continue to pump monies into a venture when the results in terms of profits turned out to be negative.
What Togbe Afede failed to realize was that if his proposed path had been adopted, over four million Ghanaians would have lost their deposits, and that would have proven disastrous for the economy.
In the light of the stable environment the banking and financial sector finds itself in now as a result of the adopted path of the Bank of Ghana, the proposition by the President of the National House of Chiefs should continue to remain a surplus to requirement.
P.K. Sarpong, Whispers from the Corridors of the Thinking Place.