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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Adongo has further lent credence to the fact that, Botchway Akwesi was not lying when he said the NDC has a problem and the weak intellectual capacity of their party is partly responsible for their predicament. A quick rudimentary search between the differences of the two banks would clearly show, there are fundamental differences between the two. Having said that, I think Adongo is on a wild journey to scurry into the rabbit hole of obsfucation and deviate or cause to sway the discourse from the critical issues, which again goes to indict their party when Ghanaians say, the Mahama NDC gov't was irredeemably incompetentttttttttt. What are we talking about here? We are talking about a staggering cost of over GHC 8 billion cedis which the taxpayer including Adongo himself, needs to bear for the collapse of those 5 banks, when the things that have led to their consolidation today, was occurring under John Mahama. Because it is either they, meaning the Mahama NDC gov't, was grosslyyyyyyy and crasslyyyyyy incompetent, irresponsibleeeeee or recklessssssss to the extent, they had no clue, not a single clue, about what was going on in the banking sector or it was a deliberate act of senselessnessssssss. Indeed, it is the case that they were incompetentttttt because, they run to the IMF for a technical expertise an euphemism for competenceeeeeee, a bailout and confidence in the management of the economy. Fastforward 18 or so months after their sacking by Ghanaians, and the problems in the sector is being fixed. This is the reality, and Adongo cannot attempt to go down the rabbit hole of the difference between an investment bank and a commercial bank, because in his desperate attempt to run down that hole, he has proven he's incompetentlyyyyyy ignorantttttt and the NDC party is toast.
HOW DID HE BECOME AN MP?
GHc 5.7billion in debts owed it by who? Adongo should tell us how much Unibank owes BOG? Has he heard that most of the loans went to directors of the bank without due process - no collateral, no risk assessment etc.? Adongo should stop the one-sided arguments. In any case Duffour Jr. is said to have just about nine years experience in banking and he has risen to the post of MD, is that normal in most cases if not because of his relations with the owner? The boy sat there and was duped yet someone wants to blame others.
GHc 5.7billion in debts owed it by who? Adongo should tell us how much Unibank owes BOG? Has he heard that most of the loans went to directors of the bank without due process - no collateral, no risk assessment etc.? Adongo should the one-sided arguments. In any Duffour Jr. is said to have just about nine years experience in banking and he has risen to the post of MD, is that normal in most cases if not because of his relations with the owner? The boy sat there and was duped yet someone wants to blame others.
No wonder people say you have eaten the head of a mad dog.The debts you claim are owed to Unibank ,were they debts that accrued in the past 18 months.Are you saying all the banks debts comprise debts owed to contractors?The past bank of Ghana administration, what were they doing about banks giving out loans more than their capacity?If you were that good why did Mahama ignore his fellow Northerner and go for Mr Tekpe?Stop talking like a village money doubler .Ask yourself why foreign banks even the Nigerian ones are not having these problems?In those banks relations will not be advanced money that would be used for weddings and to build luxury homes and buy expensive cars .That is the difference.This is the Ghana Airways syndrome all over again.
It is sad to hear an Accountant talking like this. Sometimes we allow the politics to blind us ahba.
Eii, is Adongo an MP? He has a big head and no brain. I am so disappointed in him.
Where was this man during the Mahama regime? Was he an MP then? If he was that good as he holds himself out to be, why was he not appointed as the Minister of Finance or something like that. He should stop wasting our ears.
who is this adongo. his comments so sickening, such a person is an MP. AAAHH
You are a disgrace to your family and NDC Party.This tell us your accounting certificates were all bought or fake and you can not comprehend basic English too as the facts explained by the Governor. Any ***barred word*** can go to court so proceed