A former deputy governor of the Bank of Ghana (BoG), Dr. Johnson Asiamah has taken a swipe at Gabby Otchere Darko over the latter’s recent post blaming the previous National Democratic Congress (NDC) of collapsing the banking sector.
The former governor in a write up said described the NPP’s leading member as an ‘’ignorant’’ person over the banking crisis.
‘’Otherwise, he appears to be totally ignorant on the issues and merely doing what he does best. Therefore I need to educate him and help him appreciate the issues better.’’
Mr. Otchere-Darko had through his post suggested that the NDC government nearly collapsed thee banking sector,
“Specifically, during the NDC regime, according to the evidence, some Banks engaged in the following activities which compromised their capital and liquidity, leading to their collapse: poor regulation and irresponsible corporate governance practices, circumvention of banking laws which resulted in some Banks obtaining licenses under false pretences, false financial reporting as well as insider dealings,” he mentioned.
He added that the Bank of Ghana, under the NDC government, effectively condoned under-provisioning and related-party lending to the perverse extent that the bad practice irreparably damaged the capital adequacy for some of the Banks.
He said “they were riding on limited stock of steroids and effectively false pretense.”
According to him, non-performing loans also increased since banks were saddled with public sector legacy debts, including a $2.4 billion energy sector legacy debts, to the point that oil trading companies were also collapsing; a calamity that would have eventually affected our capacity as an economy to even import refined petroleum products for essential consumption.
“The Bank of Ghana, under the NDC government, tried to sweep the problem under the shredding carpet, and managing the worsening situation by providing liquidity support to these failing Banks in a way which they ought to have known was simply not sustainable.”
‘’Specifically, the current government undertook the following activities to salvage the situation: the Government and the Bank of Ghana intervened to prevent a banking crisis by initially injecting GH¢11.2 billion of public funds into the financial sector; these measures saved not only the deposits of one million, one hundred and forty-seven thousand, three hundred and sixty-six (1,147,366) Ghanaians and their businesses and the people they employed, but also minimized job losses in the banking sector, as well, he said.
He urged that “we should not underrate the monumental rescuing job the NPP has done for the banking sector in Ghana. We will see the benefits for a long time to come.”
But Dr. Asiamah has a different opinion and his post he said: ‘’ Now guess what, the new Surgeon who is Gabby Asare Otchere Darko has the guts to accuse me of being responsible for the high cost of ultimately sending the patient abroad and causing financial loss to the hospital !’’
Read his full post below
I wouldn’t have bothered to respond to the tweet from Mr. Gabby Asare Otchere regarding the banking sector reforms, but I noticed reading his article that perhaps someone wrote it for him to just copy and paste.
Otherwise, he appears to be totally ignorant on the issues and merely doing what he does best. Therefore I need to educate him and help him appreciate the issues better.
As an illustration, let us assume that I am a Surgeon working in a government hospital. I have a patient under my care who needs a life-saving kidney operation, however tests show that the patient has other complications such as malaria, diabetes and high blood pressure.
Further tests suggest that his own kidney could last another 3 months with some dialysis, and hence I decided to keep the patient in intensive care while I treat the underlying complications.
The patient also confided in me about other related social pressures that were apparently having impact on his poor health, but for good reason I decided to keep these in a confidential folder.
While this process was ongoing, another Surgeon who has just taken over as the head of the hospital (a political appointment) decided to force me out of the hospital entirely because he simply felt like doing so.
Under the circumstances, I could do nothing but quietly leave the hospital as well as the patient under my care.
After I left, the new surgeon said I was wasting too much time on the patient and hence decided to take him to the theatre and did the surgery without regard for the underlying conditions.
Unfortunately, the wounds could not heal and the new kidney was rejected by the patient’s system. After two weeks, the hospital decided to urgently fly the patient to an expensive hospital abroad as a last option and at great cost.
Now guess what, the new Surgeon who is Gabby Asare Otchere Darko has the guts to accuse me of being responsible for the high cost of ultimately sending the patient abroad and causing financial loss to the hospital !
From Dr Johnson Asiamah, former deputy governor of Bank of Ghana