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Minority demands transparency in management of collapsed financial institutions

Mr Haruna Iddrisu

The Minority in Parliament is demanding for what it calls “greater transparency and accountability in the management, supervision, and regulation of the collapsed financial institutions.”

According to the caucus, the processes surrounding the banking sector clean-up which involved nine universal banks and  dozens of other financial institutions has been shrouded in opacity and secrecy. 

Minority Leader, Haruna Iddrisu, addressing journalists in Parliament yesterday said their demands were borne out of the breaches of the Banks and Specialised Deposit Taking Institutions Act, 2016. 

The Act mandates a receiver to establish a new financial position for the bank or specialised deposit taking institution based on a determination of liquidation values of the assets of the bank or specialised deposit taking institution. 

Section 130(4) states that “The receiver shall within one month of taking possession of a bank or specialised deposit taking institution and transmit a copy of the inventory report to the Bank of Ghana.” 

“We are asking that, where is the inventory report on the collapsed banks and on the microfinance and savings institutions, was it remitted to the Bank of Ghana? If yes, where is it?” he asked. 

The Tamale South MP said the laws of the country must be respected in tandem with democratic governance and not in favour of any individual. 

“We demand respect to the letter and spirit of the Specialised Deposit Taking Institutions Act and that this country is governed by law.” 

He said despite Section 130(5) demanding that the inventory report is published in two national newspapers of national circulation and on the website of the Bank of Ghana, “this has not happen.” 

“We are demanding greater accountability and transparency from the Governor and the Bank of Ghana as the regulator of the financial sector. 

“We cannot run this country on the whims and caprices of any person. This country must be governed in accord with the law,” he charged. 

The receiver, Mr Iddrisu said, was entitled to five per cent of every asset recovered from auction of the assets of the institutions but the assets of the collapsed banks have not been published.

In his view, “probably, the receiver may have earned more than he should and the numbers will excite you to know how much money the state has spent on a receiver on the name of banks they could not salvage.” 

With all these, Haruna Iddrisu said it was important the Bank of Ghana came to clear the air on the management, supervision, and regulation of the collapsed financial institutions.

BY JULIUS YAO PETETSI

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