Member of Parliament or Assin Central Constituency, Kennedy Agyapong claims the crisis in Ghana’s banking sector started under the erstwhile John Mahama led National Democratic Congress government.

The crisis, according to the MP was however covered up by the NDC government because they lacked courage to resolve the issue and did not want to be accused for the collapse.

Speaking on Adom TV’s Badwam, the MP said “People are saying banks have collapsed under NPP government. The banks collapsed as far back as 2015. They were covering them. Why did the NDC release money to cushion the banks?”

He added, “It didn’t start under the NPP government. It started in 2015 but the NDC lacked the boldness and didn’t want to take the blame for it.”

In defense of his party, MP for Bodi constituency Sampson Ahi who was on the show with Mr. Agyapong explained that the monies released by his government was not meant to cover up the crisis but to rather bail out the banks from collapsing.

“It was just to bail them out. What is wrong in saving companies that provide employment to people in this country? We were not only thinking about profits but also the social impact the crisis may have,” he stressed.

Background

Some seven banks in Ghana have collapsed just in a year following an investigation by the Central Bank of Ghana into their operations.

According to the BoG’s investigations, The Beige Bank, Sovereign Bank and Construction Bank which have gone bankrupt, obtained their banking licences illegally through the use of suspicious and non-existent capital.

The BoG has, therefore, merged The BEIGE, Sovereign, Construction, UniBank and Royal Bank into a Consolidated Bank of Ghana Limited to save them situation.