Dr. Mahamudu Bawumia, the presidential candidate for the New Patriotic Party (NPP), has sharply criticized John Dramani Mahama, the flagbearer of the National Democratic Congress (NDC), over his recent pledge to restore the licenses of financial institutions that were shut down during the NPP’s administration.
At the NDC manifesto launch in Winneba, Mahama vowed to reinstate the licenses of certain banks he claims the NPP government unfairly closed.
However, Bawumia, speaking during a media engagement in Accra, expressed disbelief at Mahama’s proposal.
“We saved the deposits of 4.6 million bank depositors who were at risk of losing their savings if those banks had not been rescued,” Bawumia reassured, highlighting the NPP’s unwavering commitment to financial stability.
“I need to understand whether the former president has taken the time to understand the banking sector.
Some serious infractions occurred, so these banks had to be addressed.”
Bawumia elaborated that the banks in question did not simply collapse but were merged into other institutions, ensuring no depositor lost funds.
He accused the troubled banks of violating regulations, including extending loans beyond permissible limits.
“Some of these banks were given substantial capital by the Bank of Ghana to remedy their situation but misused the funds.
In some cases, they used the money to set up new ventures, which also failed,” Bawumia said.
He underscored that resolving these issues was crucial to preventing a complete collapse of the banking sector, a testament to the NPP’s proactive measures.
“This was one of my nightmares over the past eight years. Most people did not realize how close we came to a total banking sector collapse.
We had to merge many of these banks to save 4.6 million depositors,” Bawumia added.
The NPP presidential candidate also emphasized that the reinstatement of bank licenses is subject to rigorous legal processes, a fact that cannot be overlooked in any discussion on the matter.
“The restoration of bank licenses is subject to legal processes and cannot be done on a whim,” he concluded.
