The Member of Parliament for the Odododiodio constituency, Edwin Nii Lante Vanderpuye, has indicated that the government will spend nearly thirty-four billion Ghana Cedis (GHS 34,000,000,000) on its financial sector cleanup and not twenty-five billion Ghana Cedis (GHS 25,000,000,000).
The former Finance Minister, Ken Ofori-Atta had estimated that the total expenditure on the financial sector clean-up to GH₵25 billion.
However, addressing members of parliament Nii Lante Vanderpuye explained that the earlier estimation by the finance ministry must be adjusted as there are other factors that must be considered.
He mentioned that 61,000 customers of the collapsed Gold Coast Fund Management expect a compensation from government.
According to him, settling each victim will amount to close to nine billion Ghana Cedis (9,000,000,000).
He concluded that adding that to the initial amount (GHS 25,000,000,000) will cost the government GHS 34,000,000,000.
“We were in this house when the former minister told all of us that they are done with the banking sector cleanup and it has caused the state 25 billion. Considering the fact that these 61 customers are yet to be paid if you calculate and according to them and their petitioner, they are owed close to almost about 9 billion, if you add that to the 25 billion that the minister of finance indicated to us that we spent on the banking sector cleanup, it means that we are going close to 34 billion cedis in that exercise,” he added.
Meanwhile, the Chairman of the Special Committee investigating these customer claims, Joe Ghartey, informed urged government to honor its pledge to reimburse the investors.
“We urge government to do its part in terms of prosecuting the matter and following it in court so that the question of whether they should be liquidated or not will come to an end so that further payments can be made,” he said.
The Committee also recommended incorporating insurance into these financial measures to avoid the government bearing the financial burden of institutional failures.
“We recognise the fact that this House passed the Ghana Deposit Protection Act 2016, and it was passed to protect depositors. We cannot continue at this rate where people set up financial institutions and then they collapse and the last resort is government.
“The government cannot continue being a guarantor between institutions and the people of Ghana. Therefore, one way to go around this is for us to insist that when you are making such investments you take insurance,” he noted.
Financial Sector Clean up: Cost of clean up expected to rise to 34 billion cedis – Nii Lante Vanderpuye.#JoyNews pic.twitter.com/HoyjY6RtZs
— Joy 99.7 FM (@Joy997FM) August 1, 2024
Source: tigpost.co
