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General News of Thursday, 17 August 2017

Source: mynewsgh.com

NDC’s bad economic management cause of UT, Capital Banks collapse - Lecturer

A Development Economist and Research Fellow with the Centre for Social Policy Studies at the University of Ghana, Legon, Dr George Domfeh has rejected claims by the opposition National Democratic Congress that Akufo-Addo led government is to be blamed for the collapse of UT Bank and Capital Bank.

He said rather the immediate past NDC administration led by John Dramani Mahama is to be blamed for the financial distress which the two banks faced resulting in their taken over by GCB Bank.

Dr. Domfeh recalled the vice presidential candidate of then opposition New Patriotic Party(NPP) and now Vice President Dr. Mahamudu Bawumia prior to the 2016 elections, saying that some eight banks were nearing collapse because of the mismanagement of the economy by the John Mahama administration.

“The NDC rejected Bawumia’s claim but here we’re today. The reality is starring in our face, ” he said.

Speaking on Oman FM’s political analysis programme “Boiling Point” Dr Domfeh stated that the woes of the two banks started way back in 2015 hence NPP government cannot be blamed.

“All the economic indicators were not favourable under Mahama,” he said adding that Mahama’s bad governance and economic management is what caused the collapse of the two banks,” he said.

He explained that as result of this bad governance and mismanagement of the economy, many customers who borrowed to do business couldn’t pay back the loans.

He commended Bank of Ghana for being swift in saving customers of the two banks.