The Banking Sector Clean-up was a policy introduced by the New Patriotic Party (NPP) government to safeguard the investments and savings of customers. The Ghana banking crisis, which spanned from August 2017 to January 2020, severely impacted the country. Following President Nana Akufo-Addo’s election in December 2016, the Bank of Ghana authorized the takeover of several indigenous banks by private entities between August 2017 and January 2019.
While the government prioritized the interests of customers by allocating funds from Parliament to settle their savings and investments, there were allegations of misappropriation. Charles Nyame, the convener for Gold Coast Fund Management, expressed these concerns during an interview on the Ahotor 92.3 FM morning show hosted by Alex Nana Dogbey in Accra.
Nyame criticized Vice President Dr. Mahamadu Bawumia’s statement promising to resolve outstanding interests and individual investments affected by the government’s policy. He described the situation as both bizarre and unfortunate, highlighting that some members had passed away and many others faced severe economic hardships due to the government’s financial negligence.
Nyame emphasized that the GH¢1.5 billion allocated by the government was grossly inadequate to settle the outstanding debts totaling GH¢4 billion owed solely by Gold Coast Fund Management members.
In another development, President Akufo-Addo instructed the Ministry of Finance to release GH¢1.5 billion to compensate customers affected by the banking sector clean-up. Finance Minister Dr. Mohammed Amin Adam disclosed this during a UK Town Hall meeting, noting that the disbursement would occur between now and October.
Dr. Adam acknowledged that while the government shouldn’t be liable for individuals’ investment decisions, mistakes had been made due to inadequate information and consultation avenues. He lamented the severe consequences faced by some, including loss of life and economic hardship.
Dr. Adam reiterated the government’s commitment to supporting those affected, stating, “This government is compassionate; despite the circumstances, we provided an initial bailout and now we’re set to provide another.”
Politically, Nyame stated that approximately 61,000 members of Gold Coast Fund Management had resolved to mobilize against the government in the upcoming December elections. They accused the NPP government of orchestrating policies that depleted state coffers, burdening taxpayers.
Story by: AYM Kukah
