The Dean of the Business School at the University of Cape Coast, Professor John Gatsi has said that staff of the Ministry of Finance should be questioned if there is going to be an investigation into the clean-up exercise that was undertaken by the Bank of Ghana (BoG) in the financial sector.
He said if it is established that their decisions were not palatable or out of place, then they should be asked to answer for their stewardship.
Prof Gatsi said this on the Big Issue on TV3 Tuesday, May 16 when asked whether officials of the Bank of Ghana should be held liable for the way and manner the cleanup exercise was undertaken.
He said “if there is going to be a comprehensive investigation on some of the decisions which are not palatable and not in place, the staff of the Finance Ministry will have to be part,” he said.
His comments come after former President John Dramani Mahama promised to restore the licenses of the banks that, in his view, were unjustly collapsed.
Delivering his formal acceptance speech at the University of Development Studies (UDS) on Monday, May 15 after his victory as flagbearer of the National Democratic Congress (NDC) on Saturday, May 13 he said “Let me restate what I said in Ho during the launch of my campaign for Flagbearer— we shall promote robust local participation in our banking, financial, telecommunications, tourism, mining, agriculture, agribusiness, and manufacturing sectors to grow the economy and create sustainable employment for the youth.
“We will restore indigenous Ghanaian investment in the finance and banking sector and create a tiered banking system that will serve various segments of the market. We will give the opportunity for experienced banking hands who were laid off, to secure their careers once more and move from the menial jobs they were forced into.
“As far as practicable, banking licenses that were unjustly canceled by this Government would be restored.”
Some local banks collapsed when the central bank revised the minimum paid-up capital for existing banks and new entrants from GHS120 million to GHS400 million.
According to the regulator, this was to test the viability of the banks.
The banks that were unable to meet this new requirement were either merged or collapsed.
Some nine local banks, 23 savings & loans companies, 347 microfinance institutions, 39 finance houses and 53 fund management companies closed down during the exercise.
UniBank, The Sovereign Bank, The Beige Bank, Premium Bank, The Royal Bank, Heritage Bank, Construction Bank, UT Bank, Capital Bank all collapsed. Some analysts and observers criticized the BoG and the Finance Ministry over the collapse of the banks because in their views, these banks could have been saved to continue employing Ghanaians.
3news.com
