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Decision On Collapsed Banks Was To Save 50,000 Jobs — Finance Minister   
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The Minister of Finance, Mr Ken Ofori-Atta, has explained that the decision to revoke the licences of seven banks was taken to save about 50,000 white-collar jobs in the overall financial sector, describing the decision as one of the most reflective periods in the history of the financial industry.

Defending the action of the Bank of Ghana (BoG), the minister said: “The leadership of the BoG has risen to the challenge. It’s a call to duty as we try to understand that these are difficult moments for all of us and that it requires some courage to take some bold decisions.”

Mr Ofori-Atta gave the explanation at a forum organised in Accra by the Danquah Institute, a think tank, on the theme: “The banking sector clean up — Are depositors safe?”

He said so far GH¢8 billion of taxpayers’ funds had been used to protect depositors and jobs.

The total value of the country’s financial sector, as of the end of 2017, was GH¢162 billion, of which the banks and other deposit-taking institutions contributed about GH¢110 billion, representing 53.4 per cent of gross domestic product (GDP).


Regarding the collapsed banks, the minister did not mince words when he described the situation as “plain thievery on the citizens by some shareholders and directors of these banks and a clear compromise by some officials of the central bank”.

He explained that there had been no adherence to proper corporate governance and no checks and balances, as some of the shareholders and the directors lent depositors’ funds to themselves, while some of the banks which were on emergency liquidity support engaged in inter-related lending, among others.

“We will make sure that these acts will not go unpunished and there will be prosecution for all those found liable,” he said.
Source: Graphic.com

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