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Business News of Thursday, 28 July 2022

Source: www.ghanaweb.com

NDC superintended 'Ponzi schemes' which led to banking sector clean-up – Majority Leader

Majority Leader of Parliament, Osei Kyei-Mensah-Bonsu play videoMajority Leader of Parliament, Osei Kyei-Mensah-Bonsu

Majority Leader, Osei Kyei-Mensah-Bonsu, has accused the erstwhile John Mahama administration of superintending over what he describes as ‘Ponzi Schemes’ which led to the near collapse of the banking sector.

According to him, the NDC government at the time used glorified banks which were operating as ‘Ponzi schemes’ to dupe unsuspecting depositors of their hard-earned investments.

Making remarks on the floor of parliament following the 2022 mid-year budget review, the Majority Leader said “Mr. Speaker, we spent GH¢25 billion to clean up the banking sector due to the operation of some glorified Ponzi schemes that the [NDC] superintended and yet pretended they were operating banks.”

“These Ponzi schemes duped the good and unsuspecting people of this country. Mr Speaker, the effect of the banking sector clean-up and the amount the country has spent on the exercise to rescue depositors’ funds is greater than perhaps ten bombs from the Russia-Ukraine crisis.”

He made the comments during a debate by the Majority and Minority in parliament after the presentation of the 2022 mid-year budget review on July 25.

The banking sector clean-up exercise undertaken in 2017 saw the Bank of Ghana revoke licenses of nine (9) banks including Heritage Bank, Limited, Premium Bank Limited, uniBank, Sovereign bank, BEIGE Bank, Royal Bank, Construction bank, UT Bank and Capital bank.

In addition to this, over 40 other financial institutions were also affected by the clean-up which included some fund management firms.



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