Mahama’s promise to reinstate collapsed banks is a joke – Dr Mark Assibey

Former Chairman of the Finance Committee in Parliament, Dr Mark Assibey Yeboah, has dismissed former President John Dramani Mahama’s promise to reinstate some of the banks that collapsed during the banking sector clamp as unrealistic and onerous.

The 2024 flagbearer of the opposition National Democratic Congress (NDC), John Dramani Mahama, has reaffirmed his pledge to possibly revive some of the collapsed banks and financial institutions after a comprehensive and unbiased assessment.

He stressed the importance of this initiative in stabilising the financial sector and restoring public confidence.

Expressing concern over Ghana’s escalating unemployment rate, Mahama urged Ghanaians to support him overwhelmingly in the 2024 general elections to rejuvenate the struggling economy.

In an interview on Asempa FM’s ‘Ekosii Sen’ programme on Wednesday, September 25, Dr Assibey Yeboah dismissed the pledge as a “joke,” raising doubts about the practicality of such a promise given the challenges that prompted the financial sector reforms.

According to Dr Assibey Yeboah, the collapse of several banks and financial institutions during the clean-up exercise was necessary to stabilise the financial sector, which had been riddled with mismanagement and insolvency.

He argued that Mahama’s attempt to politicise the clean-up was disingenuous, as the move was essential to protect depositors’ funds and restore confidence in the sector.

He further explained that the state could not afford to reinstate insolvent banks without compromising the gains made in the financial system.

Dr Yeboah also questioned the practicality of Mahama’s promise, pointing out that many of the collapsed institutions were facing severe regulatory breaches, including non-compliance with capital requirements and fraudulent activities.

He emphasised that any move to reverse the clean-up would set a dangerous precedent, rewarding institutions that had failed to adhere to proper financial management practices.

He stated that Mahama’s promise was merely a populist appeal aimed at winning votes ahead of the 2024 elections.

Furthermore, the former Finance Committee Chair argued that Mahama had no track record of successfully managing the banking sector during his presidency, citing the numerous challenges the sector faced under his administration.

He noted that Mahama’s government did little to address the weaknesses in the financial system, which ultimately led to the crisis that necessitated the clean-up.

“That is a joke. How are they going to do it? Let’s take that in the unlikely event, that he wins the forthcoming election and is sworn in on January 7 and on January 8, he will call Unibank that they should come for their license. Where is the bank? The bank is gone. So would they be holding the license and walking about that they’ve given me my license? It’s a joke,” he insisted.

Source: myjoyonline