A former Director of Communications for the NPP who was sacked from the party for supporting Alan Kyerematen, Yaw Buaben Asamoa, has asserted that former President Mahama admitted to being part of the financial sector crisis that engulfed the state.
He says the NDC’s 2024 flag bearer’s admission of granting excessive licenses to people for the sprouting of financial institutions to give way for the mismanagement and misappropriation of depositors’ funds accounted for the crisis and the subsequently the cleanup.
The Banking Sector Cleanup was aimed at ensuring orderly exit of insolvent institutions to protect depositors’ funds and also ensure the safety and soundness of the banking sector which was in a state of distress.
Finance Minister, Kenneth Nana Yaw Ofori-Atta, supervised the exercise from mid 2017 to January 2020. The clean-up saw a reduction in the number of banks from 34 to 23, whilst 347 microfinance institutions, 15 savings and loans and eight finance houses had their licences revoked.
Government spent over GHC20 billion for the exercise whilst experts say less than GHC10billion could have saved the banks.
Speaking on Pae Mu Ka Wednesday, November 22, 2023, on Onua FM/TV, the former Adentan lawmaker said but for the indiscriminate issuance of licences to the public by the Mahama government, there wouldn’t have been any need for a crisis to warrant a cleanup.
Watch him speak in the video below:
