Banking sector cleanup: Akufo-Addo orders payment of victims

President Nana Addo Dankwa Akufo-Addo has directed the Finance Ministry to pay victims of the banking sector cleanup. This must be done between now and October 2024, before the heat of the 2024 general elections kicks in.

Dr Amin Adam, the Minister of Finance disclosed the plan during a Town Hall Meeting in the United Kingdom over the weekend.

This could probably be the last of such payments after the Bank of Ghana governor, Dr Ernest Addison revealed in 2020 that all the failed banks’ customers have been paid. He added that 95% of the savings and loans and microfinance customers too were paid. The government paid GH¢3.4 billion to victims of the banking sector cleanup in 2020.

“The second phase has to do with the SDIs – these are the savings and loans, microfinance institutions and finance houses. In their case, for individual depositors who have been fully paid, the data that we have suggests that more than 95% of depositors have been fully paid.

“…there are just about 5% depositors who have large amounts, these are the high net worth individuals that were settled with loans which were to be retired over five years. So, we think that most of it has been done,” Dr Addison said in 2020.

Announcing the President’s directive, Dr Amin Adam reiterated Dr Bawumia’s earlier statement that the investments made in those financial institutions were private decisions for which the government cannot be held accountable. The Minister said the government’s decision to pay them is a gesture of care, not responsibility.

“Ideally, government should 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, and 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,” Amin Adam said.

He said because the government is so caring, a bailout was granted to all affected persons and they are set to do it again. This time, the government has earmarked GH₵1.5 billion to pay the banking sector cleanup victims.

“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,” Dr Amin Adam stated.