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General News of Tuesday, 27 August 2019

Source: YEN

Fact check: Mahama and his brother contributed to banking mess

Former President John Dramani Mahama has had a lot to say concerning the banking scandal which has led to the closure of many financial institutions.

About 420 financial institutions in the country have been closed down in the last 24 months due to their alleged insolvency.

The Bank of Ghana recently revoked the licences of some 23 Savings and Loans companies in the country.

Among the affected financial institutions are GN Savings and Loans, First Allied Savings and Loans, Global Access Savings and Loans and Midland Savings and Loans.

The revocation of the licences of the 23 Savings and Loans companies adds to woes of the financial sector in recent years.

The last two and half years have seen several banks, investment companies and microfinance companies closed down by the Central Bank.

Interacting with Ghanaians on social media Thursday, August 22, Mahama described the mess in the banking sector as a threat to national security.

He said the financial sector clean-up has led to many Ghanaians losing trust in the financial system.

According to him, about 20,000 direct jobs have been lost due to the BoG’s revocation of the licenses of many financial institutions.

However, what the NDC flagbearer failed to mention was that he also contributed to current mess in the financial sector.

All that is happening started two and half years ago when UT and Capital Banks were consolidated after the Central Bank deemed both institutions insolvent.

The UT Bank, in particular, was forced to bend over backwards because Mahama’s own brother, Ibrahim Mahama, owed the institution.

Ibrahim Mahama reportedly owed the defunct bank ¢302m, a facility that was extended to his four companies.

With the above case, which happened when Mahama was President, it points to the fact that the former President is as guilty as those he is trying to accuse today of causing the banking crisis.

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