Joe Jackson, the chief operating officer of Dalex Finance, is unsure of how ex-President John Dramani Mahama will go about restoring the licenses of the banks that, in his opinion, were unfairly destroyed during the recapitalization process carried out by the Bank of Ghana (BoG).
Mr. Jackson stated during an interview that there were various issues in the banking industry that made the central bank’s participation necessary.
“You have got to be clear that there were a lot of challenges in the financial sector, huge challenges. Some of the institutions were in deep trouble such that there is arguably a legitimate reason for the central banks stepping in. You may disagree with the process but you cannot disagree with the premise that these institutions were in trouble.
“The caveat is they were unjustifiably shut down. First of all, we have to wait and see who can claim legitimately that they unjustifiably shut down but the bigger problem is this, it is going to be some seven or eight years after the event, even if you win, how are you going to entangle this?”
Joe Jackson
In response to the newly elected flagbearer of the National Democratic Congress (NDC) promising to reinstate the licenses of the banks that were unjustifiably collapsed, he stated, “At best, maybe you will compensate the owners and the shareholders.”
After winning the position of flagbearer for the National Democratic Congress (NDC) on Saturday, May 13, John Dramani Mahama gave his formal acceptance speech at the University of Development Studies (UDS) on Monday, May 15. In it, he pledged to “promote robust, local participation in our banking and financial, telecommunication, tourism, mining, and agric and manufacturing sectors to grow our economy and create sustainable employment for our youths.”
“We will restore indigenous Ghanaian investments in the finance and banking sector and we will create a tier banking system that will serve various segments of the market.
“We will give the opportunity to experience banking hands who were laid off needlessly to secure their careers once more and move away from the menial jobs that they were compelled to take. As far as practicable the banking licenses that were unjustly canceled by this government will be restored.”
John Dramani Mahama
The minimum paid-up capital requirement for both current banks and new entrants was increased by the central bank from GHS120 million to GHS400 million. The regulator stated that this was done to evaluate the banks’ viability. Banks that could not fulfill this new standard were either merged or failed.
During the exercise, 53 money management companies, 39 finance houses, 23 savings and loans, 347 microfinance organizations, and nine local banks closed their doors.
All of the following institutions went under: UniBank, The Sovereign Bank, The Beige Bank, Premium Bank, The Royal Bank, Heritage Bank, Construction Bank, UT Bank, and Capital Bank. The BoG and the Finance Ministry have come under fire from certain analysts and observers over the banks’ failure since, in their opinion, these banks could have been saved to keep hiring Ghanaians.
Haruna Iddrisu Asserts That Mahama Will Free Ghana From Akufo-Addo’s Grasp
According to Haruna Iddrisu, a former minority leader and member of parliament for Tamale South, John Dramani Mahama has been chosen to represent the opposition National Democratic Congress and help free Ghana from the grasp of the Akufo-Addo/Bawumia administration.
At the University of Development Studies in Tamale’s post-election speech celebration honoring John Mahama, Haruna Iddrisu criticized the government for exposing Ghanaians to agonizing suffering. The lawmaker characterized John Dramani Mahama as a national leader with moral character and compassion.
“He [Mr. Mahama] comes in with unique characteristics. Former President Mahama is not a sketch but a full portrait of a leader. For him, public service is a calling, and he’s only come back to lead the NDC to rescue our country which has been run to its lowest ebb. Nana Addo Dankwa and Bawumia have run this country into economic failure manifesting in excruciating hardship.
“The man to rescue the economy is former President John Dramani Mahama. He also comes to this office with five characteristics such as character, temperament, integrity and compassion. He is not a president who will promise no haircut but will cut hairs.”
Haruna Iddrisu
There were party leaders, executives, and party members present for the acceptance speech ceremony.
