Vice President Dr Mahamadu Bawumia says the John Mahama administration’s failed to heed to his warnings on the ills of the banking sector.
At a public lecture in 2015, Dr Bawumia revealed an Asset Quality Review which revealed the various ills in the country’s banking sector.
According to him, NDC government however did very little to address the concerns in the sector despite the clear signs on the wall.
“The previous government was fully aware that there were problems in the banking sector. In 2015 there was what is called the Asset Quality Review which I spoke about. I said 8 banks in the country were insolvent and may collapse but the government paid deaf ears to what I said”.
“The banks that were collapsed were set up without capital. What they did was that they put money together, present it to the bank of Ghana to prove they are capital worthy and get certified. After they get the certification, they move the monies for their private businesses”, ,” the Vice President told Peace FM’s Kwame Sefa Kayi on the Morning show.
The Vice President indicated some of the banks were set up without capital but rather put money together to prove they are capital worthy get certified by the Bank of Ghana and when given some liquidity support, such funds will be diverted into other things.
He therefore added that the government had to come in to save depositors and also streamline the sector to make it better going forward adding that the Bank of Ghana itself has also reviewed its systems and have made things better.