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$250m saga: Gov’t killing state banks – Group

A group known as Ghana Must Know, has accused the government of deliberately collapsing state-owned banks.

This followed the transfer of $250 million of last year’s $1 billion Eurobond proceeds to the UBA bank, an action government has strongly defended.

Speaking at a press conference in Accra Friday May 13, Convener of the group, Hopeson Adorye, said monies deposited at UBA could have saved the state-owned Merchant Bank from being sold.

“Will our banks not have improved to create more jobs for the unemployed masses? Wouldn’t we have saved the seeming collapse of our state-owned banks? These are questions we need to demand answers from the Minster,” he told the press.

“Let us take a look at the current performance of our own Government of Ghana bank, [an] example [being] the Agriculture Development Bank (ADB). The ADB is on the verge of collapse. The bank [needs] to raise an amount of $105 million through its initial public offer to survive.

“At the same time, the Government of Ghana, led by the proven incompetent Mahama, has dashed out $250 million to Nigeria’s own bank. This same amount, if given to ADB to deposit, would have gone a long way to help the bank.

“Nonetheless, Mr Seth Terkper and his boss, knowing very well their selfish benefit cannot be acquired through the state banks, rather chose where they could loot and share after such a 419 creation of a sort.

“You will recall that not too long ago, a state bank, Merchant, totally collapsed all in need of cash. At the time of sale of Merchant Bank to Fortiz, it needed $19million for recapitalisation. This is less than 10 per cent of what has been given to UBA to deposit. Merchant Bank would have survived.”

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