GHS 1.5bn for customers of failed banks is a political gimmick – Adongo

Bolgatanga Central lawmaker Isaac Adongo has described the GHS1.5 billion that the government says it has earmarked to pay customers of the defaulting banks as a political gimmick.

He says the government made a similar promise ahead of the 2020 general elections but did not deliver.

Speaking to journalists in Parliament on Wednesday, June 26, he said “You remember in 2020 I gave a lecture at the Kama conference center and at that programme, I told you that I had received a call from HE John Dramani Mahama saying that I should tell the people of Ghana that when he wins power he will pay everybody. Immediately they went and issued papers, they gave everybody a bond, what happened to the bonds? 2024 is another election. They have forgotten that in 2020 they made that promise. People have forgotten where the papers are lying.”

The Finance Minister Dr Mohammed Amin Adam who announced the plan to pay the customers said that the GHS1.5 billion will be released from now to October.

He said although the government is not responsible for the investment decisions of individuals, it is a caring government hence the decision to earmark the 1.5 billion to compensate them.

Answering questions during a town hall meeting in the United Kingdom over the weekend, he said ” The question on the money locked out, we are going to pay. We do not take responsibility as a government because when people decide to invest in one bond or one instrument or another government is not consulted, it is an individual decision and when you are investing you know you can make your returns or you can also lose.

“Even, as a government when we invest in euro bonds the market is volatile, we lose, we gain and when we lose we don’t blame America or Britain for losing, we are advised before we invest so it is important for us to establish that foundation that the government will not be held responsible for the investment decisions of individuals but this government is so caring.

“Mistakes were made and people were not well-informed, maybe they didn’t know who to consult to be advised, but we also know that the people who are affected are suffering, and we have heard that some people have died and others had to commit suicide.

“This government is so caring that in the first place, we granted some bailout to all the affected and I want to tell you again that the President has directed that we do another bailout.

“So between now and October, we will release 1.5 billion Ghana Cedis to the affected people,” he said.

He added “This will not be the entire amount, the entire amount is GHS4billion but we are showing the roadmap, we will do the GHS1.5billion and Insha Allah Dr Bawumia will come as the president and we will do the rest but as we do this we will also be cautioning you that just as we have responsible banks we also have bad banks, you will say that the regulators must ensure we don’t have bad banks but in every house there is a Mensah, so we also have to watch out, let’s study them, let’s assess them, seek advise of financial advisors before we decide where we invest and how much to invest.”