A political Analyst, Kofi Poku is calling on the opposition National Democratic Congress (NDC) to refrain from negative commentaries on the financial sector clean-up, which helped to ensure that the financial sector is stable and also helped to strengthen banks in the country. He said that instead of the opposition commending the government and the
The post NDC should stop propaganda on financial sector cleanup, some shareholders admitted dissipating depositor funds – Political Analyst first appeared on 3News.
A political Analyst, Kofi Poku is calling on the opposition National Democratic Congress (NDC) to refrain from negative commentaries on the financial sector clean-up, which helped to ensure that the financial sector is stable and also helped to strengthen banks in the country.
He said that instead of the opposition commending the government and the central bank, he has observed that there is always negative propaganda from the opposition on the financial sector clean-up.
“I can tell you that most of the shareholders admitted dissipating depositor funds to acquire assets in their names. Depositors’ funds are not for shareholders. It is against the banking regulations to take depositors’ funds to buy properties.
“In the coming days, We will let the world know the full list of the properties that depositors funds were used for,” he told 3news.com.
Kofi Poku was responding to commentaries by the opposition NDC on the restoration of licences of the resolved banks.
“I can tell you that, most of the local banks breached several banking regulations.They had governance issues.
“You had a situation where loans were given to family and friends without proper documentations. Depositors’ funds were diverted to build businesses of shareholders. Some depositors were not getting back their funds from some of the financial institutions.
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“The NDC has no appreciation of the corporate governance issues that bedeviled the financial sector. Poor governance and breaching of prudential rules were at the core of the Banks that failed. This is not for political propaganda.” Kofi Poku said.
“In fact the financial system at the time, was on the brink of total collapse. Poor business practices and weak capital positions of the banks and financial institutions were visibly seen. The liabilities of some of the local banks were more than their assets. You also had a situation where some of the local banks were just surviving on liquidity support from the Bank of Ghana and putting depositors’ funds at risk.”
He further explained that the Government rather intervened to ensure that customers do not lose their money.
The central bank indicated that the reason why most banks were able to withstand increased withdrawals and met depositors’ demand for cash in the lockdown period, was due to the fact that banks were solvent and well capitalised.
Kojo Poku also indicated that the challenges and problems before the financial sector clean up was caused by the NDC administration.
The post NDC should stop propaganda on financial sector cleanup, some shareholders admitted dissipating depositor funds – Political Analyst first appeared on 3News.
