Vice President, Dr Mahamudu Bawumia, says Ghana’s banking system would have “collapsed” under the National Democratic Congress (NDC) if it had not been voted out.
The economist said the then president John Dramani Mahama lacked the “courage” to deal with the banking rot that escalated in 2017.
Speaking at the maiden Townhall Meeting at the Kwame Nkrumah University of Science and Technology Tuesday, Dr Bawumia said: “left to the NDC the banking system would have collapsed.”
“The NDC was unable to do it…they were aware of the problem but were unable to deal with it,” the former deputy Governor of the Central bank said.
A total of 16 banks – some indigenous – have collapsed between 2017-2019 following a clean-up exercise undertaken by the Bank of Ghana.
The banks include; UT Bank, Capital Bank, The Sovereign Bank, The Beige Bank, Premium Bank, The Royal Bank, Heritage Bank, and Construction Bank among others.
The banking crisis had been persisting for many years, predating the 2016 General Elections.
Dr Bawumia said he had warned the government about the imminent collapse but he was disregarded.
“As an opposition member I predicted it [but] they did nothing,” he said, adding the current government “stepped in to provide financial support for depositors of the collapsed banks.”
Dr Bawumia admitted the banking exercise had been a “painful” one but was necessary to save the economy.
“Over a million have access to their deposit and over 7000 jobs have been saved,” he said, adding this would not have happened under the NDC.