Expectedly, the nature of the afflictions of the distressed indigenous banks is beginning to emerge barely two days after the Bank Of Ghana (BOG) marching orders.
Until the dawning of a new political order in the country, these afflictions were veneered by copious propaganda. Even in the midst of the propaganda, the economics savvy, Dr. Mahamudu Bawumia told Ghanaians that the glitters were not gold and that beneath it all lurked trouble. He went ahead to indicate that eight banks were on the verge of going under. That has come to pass and putting paid to the coordinated propaganda by the then ruling NDC.
With a better managed governance system now in place, it has not taken long for the full length of the frog to be determined. The indigenous banks which rode on the waves of bad governance and quantum breaches taking place in the full glare of the regulators at the time, could not have survived for long before even the layman would see the inherent cracks.
We recall the stance by some NDC stalwarts that the Finance Minister seeks to ‘project his Databank to the disadvantage of the now distressed banks. Details which have emerged today have belied their positions.
Economic figures do not lie and those who fidget with these so they can gain political dividends will soon be stripped naked in the marketplace for all to see them for what they are.
Today, the so-called glitters of the indigenous banks; some of them set up by top politicians with tentacles on the corridors of power, have been turned over their bellies showing their infected punctures.
We are just wondering what propaganda template they would adopt next following the expose. There is no doubt that the current crisis that has bedeviled the indigenous banks is the result of the politicization of banking supervision and monitoring. This important department of banking succumbed to political influence, those in charge fearful of big men holding important positions breathing down their necks to do their bidding.
Persons under 40-years-old being licensed to operate financial entities and others using the recapitalized monies to set up new ventures are some of the breaches noted.
Those whose inefficiency and acts of omission led to this mess must be held accountable. The courts are meant to deal with such matters.
Our financial sector has been hit by these acts of irresponsibility by both the regulator and germane agencies. Transfers of monies to savings and loans companies – some of them laced with illicit businesses – must be investigated and the culprits sanctioned according to the law.
Financial crime as committed by identifiable personalities must not be brushed under the carpet as we are wont to do in this country. We want to see those under whose direction these were committed made to answer relevant questions so that this mess does not recur.
Let them shut up those who continue to hop from one radio station to another spewing nonsense about the action taken to instill discipline in the corrupted banking sector.