Public loans were spent on cars and conferences, not development — Ato Forson drops shock claims

Finance Minister Dr. Cassiel Ato Forson has indicated that the government has no immediate plans to provide recapitalisation support to savings and loans companies in Ghana, insisting that private financial institutions must explore alternative ways of strengthening their operations and restoring confidence in the sector.

According to the Finance Minister, most savings and loans companies operate as privately owned entities and should therefore take greater responsibility for improving their financial stability through strategic partnerships, risk-sharing arrangements and access to private capital.

The Finance Minister made the remarks during an interview on the Citi Breakfast Show on Friday, July 24, where he spoke with host Bernard Avle about the government’s economic priorities, public spending and the allocation of limited state resources.

He intimated that while he recognises the importance of the financial sector to economic growth, the government must carefully prioritise its expenditure commitments and cannot divert public funds meant for critical social and infrastructure projects to recapitalise private institutions.

He said savings and loans companies must consider options such as merging with stronger institutions, bringing in new investors or listing on the Ghana Stock Exchange to raise capital and improve corporate governance.

“At the moment, I have no plans to help with the recapitalisation of savings and loans companies. I like to be honest, and I don’t want to sit here and say I have it in my plans and fail tomorrow.

“They are private companies, and I think they should have the willingness to partner and share risk with others, go to either the Stock Exchange or bring partners on board.

“The problem in Ghana is that everybody wants to own 100 percent of something, and I have said that 100 percent of nothing is zero and 1 percent of 1 percent is still something. I cannot give the money that I am going to use to build schools, pay teachers, and build hospitals to do only that.

“I don’t have limitless resources, I have only tax revenue, and I need to account for it and cannot cede it to another sector when public good is at risk.”