Former Chairman of Parliament’s Finance Committee, Dr. Mark Assibey Yeboah, has rejected former President John Dramani Mahama’s proposal to reinstate collapsed banks, labelling the pledge as impractical and burdensome.
John Dramani Mahama, the 2024 flagbearer of the opposition National Democratic Congress (NDC), recently reiterated his commitment to restoring some of the collapsed financial institutions, contingent upon a thorough and unbiased evaluation.
Mahama emphasised the necessity of such actions to stabilise the financial sector and rebuild public trust, arguing that the recovery of these institutions would help address the country’s growing unemployment crisis.
He urged Ghanaians to throw their full support behind him in the upcoming 2024 elections, presenting himself as the leader capable of revitalising the ailing economy.
However, during an interview on Asempa FM’s Ekosii Sen program on September 25, Dr. Assibey Yeboah dismissed Mahama’s proposition, describing it as a “joke.”
He questioned the practicality of reinstating the banks, given the factors that led to the financial sector clean-up, which he deemed crucial to restoring stability.
According to Dr. Yeboah, the collapse of several banks during the clean-up exercise was an inevitable step to protect depositors and preserve the integrity of the financial system.
He contended that the reforms, although harsh, were aimed at curbing the widespread mismanagement and insolvency that had plagued the sector. Attempting to reverse these changes, Yeboah argued, would undermine the progress made and potentially jeopardise the stability of Ghana’s financial system.
The former finance chair also pointed out that many of the collapsed banks had been involved in regulatory violations, including failure to meet capital requirements and engaging in fraudulent activities.
He questioned how Mahama planned to reintroduce these institutions without encouraging laxity in financial oversight. For him, reinstating these banks would send the wrong message, rewarding poor management and non-compliance.
Dr. Assibey Yeboah also dismissed the former president’s promise as a populist tactic aimed at securing votes. He noted that Mahama’s administration had failed to address the financial sector’s shortcomings during his presidency, ultimately leading to the crisis that necessitated the banking reforms.
“That is a joke. How are they going to do it?” Dr. Yeboah remarked. “In the unlikely event that he wins and is sworn in on January 7, he’ll tell Unibank to come for their license? The bank is gone. Would they walk around with the license in hand? It’s a joke.”
In his critique, Dr. Yeboah emphasised that while Mahama’s rhetoric may resonate with some voters, the logistics of reviving collapsed banks present significant challenges that cannot be easily overcome.