Remove Ofori-Atta, he threatens Ghana’s long-term financial stability – Group

Members of the Defunct Banks and Other Financial Institutions Network (DEBOFIN) have called for the removal of Finance Minister Ken Ofori-Atta due to the deteriorating economic conditions.

The group condemned the collapse of domestic banks during the banking sector clean-up exercise.

“Their approach in resolving the so-called mess was spending a whooping GH¢25bn to collapse our institutions instead of injecting GH¢9bn to resuscitate them in the form of liquidity support was a clear signal of incompetence and political witch hunting among others which could only be left to time to manifest,” a statement issued and signed by Convener Thomas Ayisi Kumah said.

Below is the full statement…

We sympathize with Ghanaians the unfortunate level of deterioration and hardship the Ghanaian economy has been plunged into and the apprehension surrounding the DDEP.

A few years ago, the current economic management team described our institutions as facing insolvency, liquidity and asset quality challenges and accused our CEOs and Directors of mismanagement hence the liquidation of the banks, savings and loans, microfinance and other finance houses. Some of our CEOs and Directors are facing prosecution for various kinds of offences. The finance minister an investment banker, described our institutions as in a “zombie state”.

The regulator BOG who supervised our activities, described the financial sector as being in “a considerable state of distress” and that our continuous existence posed risk to investors. With all these descriptions, the expectation of players especially staffs of DEBOFIN who lost their jobs was a better management of the economy and the financial service sector. Their approach in resolving the so called mess was spending a whooping GH¢25bn to collapse our institutions instead of injecting GH¢9bn to resuscitate them in the form of liquidity support was a clear signal of incompetence and political witch hunting among others which could only be left to time to manifest.

It was very clear after the exercise was inefficient, imprudent and wasteful use of tax payer’s money. Their actions which increased the nation’s debt stock has now come to hunt us as a country. Fast forward 2023, the Ghanaian economy can now be described as facing a debt distress and will only take an IMF bailout to restore stability. Even that, their approach needs much to be desired in the handling of the DDEP. What they are scheming to do with the DDEP is to shift fiscal responsibility to innocent bondholders and the next government upon losing the 2024 elections but more important to them to create fiscal space for political machinations in the interest of breaking an 8.

The posture of the members of the economic management team is a situation of hopelessness. While the vice president as head of the economic management team appears unconcerned with the current economic situation and going about promising one tablet per student and others just in furtherance of his quest to lead his party. The same unbudgeted political sloganeering they did that has ended us in this quagmire.

The unsolicited and unrepentant finance minister whose services is no longer needed and can be charged with same malice as our directors and CEOs is still at post. His face at the ministry reduces investor confidence in the economy and until he is removed, confidence in our economy will be a long chase dream. He’s been left on his own by the president and is undertaking unproductive decisions of no hope. The BOG governor is aiding and abetting their unproductive policy initiatives crippling the sector.

We call on well-meaning Ghanaians, led by our two former presidents; John Agyekum Kuffour and John Dramani Mahama, the likes of Dr Kwabena Duffour, Dr Kwame Pianim, our Minority leader Dr Cassiel Ato Forson,  CSO’s and academia to organize a “save our country” dialogue session reminiscent of the Senchi forum to find better ways of addressing our current predicament.

In the nut shell, it is the fervent believe of DEBOFIN that the current economic managers are getting everything about the management of the economy and financial service sector wrong and can only be described as incompetent, wasteful and leading Ghana nowhere. Their try and error approach to managing this economy is detrimental to the future of this country and the earlier we together rescue Ghana the better.