A leading member of the opposition National Democratic Congress (NDC) is accusing the ruling New Patriotic Party (NPP) of deliberately collapsing financial institutions in the country.
Member of Parliament for Bolgatanga Central, Hon. Isaac Adongo describes as "sickening" government’s refusal to pay debts owed to these banks.
Speaking on Okay FM’s Ade Akye Abia programme, he explained that government should have intervened earlier and not allow the local banks to go into financial distress.
"A classical example is government’s indebtedness to Unibank.
"If government pays it debt owed Unibank, it will over capitalized more than any bank in Ghana," he stated.
According to him, Unibank has in excess of GHc 5.7billion in debts owed it and would not have issued with recapitalization if those monies are paid.
Unibank Insolvent
In March 20, 2018 government announced the takeover of Unibank.
Announcing the takeover, the Governor of the Bank of Ghana Dr. Ernest Addison, said UniBank is currently insolvent.
He also announced the appointment of KPMG to, over a period of six months; manage the bank to save it from collapse.
Gov't Must Pay Its Debt Owed Unibank
However, the new administrator of Unibank is asking government and its allied institutions to pay its debts owed the bank in order to prevent the local bank from total collapse.
A June 22, 2018 letter written and signed by Simon Dornoo on behalf of KPMG, to the Finance Minister said the government must pay the debts at its earliest convenience.
As at May 31, 2018, government and its agencies are said to be indebted to Unibank to the tune of 868,973,599.10.
The debt was incurred over a period spanning both the NDC and NPP government
The administrators say government must pay its debt owed the bank as one of the key measures to bringing the bank back on its feet.
Having taken charge over a period of four months, KPMG has two months left to sanitize the Bank said to be insolvent.
5 Banks Collapse
But with just two months for KPMG to conclude its work, the BoG on Wednesday announced the merger of the bank and four others - Sovereign Bank, Royal Bank, Beige Capital, Construction Bank - into Consolidated Bank Ghana Limited.
The Consolidated Bank Ghana Limited is expected to help the government in economic development.
Dr Addison attributed the decision to merge the bank to liquidity challenges.
But the NDC MP is of the firm belief that the present administration "deliberately plunged the five financial institutions into insolvency", and has potentially "created a new systemic risk to the financial sector."
Source: Isaac Kwame Owusu/Peacefmonline.com/[email protected]
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Please all of you should forgive my northern brother, he forgot to take his medicine from Nalerigu Psychiatry hospital.Next time I will personality ensure he takes them before he comes to parliament.
Adongo, please grow up and ***barred word***. Are you not interested in a strengthened financial sector? Why must everything be politics. Sickening ***barred word*** noises.
This Adongo guy must be told to go and settle his outstanding loan to Ndoum's bank....... These loan defaulters are the ones collapsing the banks.....
Mr who ever your name is or the so called MP, read and make good judgement and stop the level of illiteracy been exhibited. The good people of Ghana have something better do for mother Ghana okay. If you have no idea and any sound financial ideas as to the level of financial regulation breaches by the banks in question and you are just reading as a layman DO COMMENT STUPIDLY
There are two things about this thing called Adongo. He's either a WEEEEEED S*MOKER or TRAMOOL abuser. He's never made any sensible contribution to issues he is alleged to be competent in. How did the people of Bolga vote for such an 1diot to represent them in parliament? Incredible!
There are two things about this thing called Adongo. He's either a ***barred word*** or TRAMOL abuser. He's never made any sensible contribution to issues he is alleged to be competent in. How did the people of Bolga vote for such an 1diot to represent them in parliament? Incredible!
This man is a disgrace to MPs
During your tym Banks were opened without going through process and rules. That has brought us here, Mr. Adongo pls read and understand issues before commenting. No wonder NDC MP signs documents without reading. It happened during NIA proceedings.... Shame
I weep for Ghana if such People are our mps. They are only interested in power because they can amass wealth there. Very corrupt ndc People. Enkosi daben na ADONGO OR aBONGO WILL BE WISE AND THINK
You guys want to meddle in everything in this country as if you don't know what you are there for as MP and opposition minority. Gradually you are being seen as jookkeerrss and irresponsibleeeee bunch of crimes. You guys took double salary for years/months without any sshhaammee and still sit out there to comment on issues beyond some of you. Characters like Adongo should go to their constituents and apologise profusely to them for denying them projects as a result of this double salary saga. selfisshh bunch of people