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Business News of Saturday, 22 February 2020


How will you pay depositors funds? - Seth Terkper to govt

Seth Terpker, former finance minister Seth Terpker, former finance minister

The Former Finance Minister Seth Terpker is raising questions on where government intends to secure funds to pay customers of defunct savings and loans companies.

Seth Terkper, speaking on Joy FM’s Super Morning Show Friday, said there is no provision for the monies in the 2020 budget.

Speaking on JoyNews, the former finance boss said the 2020 budget makes no provision for monies to be paid to these unfortunate depositors.

“Why is the provision for bailout cost zero in the 2020 budget? Where is the money going to come from? Outside the budget?” he queried.

The former Finance Minister was reacting to President Nana Akufo-Addo’s comments in Parliament on Thursday when he reiterated what leaders of his Economic Management Team namely Vice President Dr Mahamudu Bawumia and Finance Minister, Ken Ofori-Atta had said on various platforms.

Current Finance Minister Ofori-Atta hinted on Newsfile that customers of the various defunct financial institutions will be paid their deposits in full, by the end of 2020.

Dr Bawumia in his Kumasi Town Hall meeting speech also assured depositors of full restitution of their funds.

Delivering the 2020 State of the Nation Address, President Akufo-Addo said even customers of “DKM which collapsed in 2015 will receive a 100 per cent of their deposits once the validation exercise is concluded.”

With all these assurances from government, Seth Terkper is asking where the funds will come from.

Responding to him, Deputy Finance Minister Kwaku Kwarteng said government would create the space to get the money to pay the depositors.

“Governance is about the people, if we have not made provision for it and there is no space in the budget, it is for the government to create that space,” said Kwarteng.