Vice President Dr. Mahamudu Bawumia has enumerated some 82 licensed financial institutions that collapsed due to what he terms as former President John Dramani Mahama’s remarkable ineptitude.
In a post on his official Facebook page, Dr. Bawumia mentioned that Mr. Mahama’s track record as president stinks hence has no moral right to poohpooh the achievements of President Akufo-Addo.
“The choice Ghanaians face on December 7th is between John Mahama and Nana Addo Dankwa Akufo-Addo.” He stated. “Thankfully, both of them have records. John Mahama was Vice-President and President for 8 years and Nana Akufo-Addo has been the president for three-and-a-half years. It is not about what you say in opposition. It is about what you did in government.”
“John Mahama presided over a mismanaged and collapsing financial system. 82 licensed financial institutions (listed below) collapsed under JM’s watch (were they deliberately collapsed by his government?) and the depositors were not paid (sic).”
“Nana Akufo-Addo, on the other hand, has rescued the financial system and spent some GH¢21 billion to save the deposits of 4.6 million depositors who would otherwise have lost their savings. DKM depositors will also be paid,” Bawumia added.
As part of its efforts to restore confidence in the banking and specialized deposit-taking sectors, the Bank of Ghana (BoG) embarked on a clean-up exercise in August 2017 to resolve insolvent financial institutions whose continued existence posed risks to the interest of depositors.
According to Finance Minister Ken Ofori-Atta during a presentation of the mid-year budget review, the government of Ghana spent an amount of GH¢13.6 billion in the first quarter of 2020 as a result of the financial sector clean-up exercise undertaken by the central bank.
He said the amount, representing 3.5 percent of Gross Domestic Product (GDP), was spent on the resolution of failed and insolvent banks.