Why does the cost of the financial sector clean-up keep changing? - Bright Simons
Vice President of Imani Africa, Bright Simons
Simons says cost of clean-up was GH¢11b in 2019, GH¢16b in 2020 and now GH¢ 21b
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Vice President of Imani Africa, Bright Simons, has questioned why the cost of the financial sector clean-up done by the government keeps changing.
According to Bright Simons, the government said the cost of the clean-up was approximately GH¢ 11 billion in 2019, in 2020 it said the cost of the GH¢ 16 billion and now it is saying it is GH¢ 21 billion.
“The 2019 Ghana financial sector cleanup was needed. But there are questions: 1. Why does the cost keep changing?
"In 2019, BoG said total cost = 11bn GHS. In 2020, it changed to 16bn. Now, 21bn? 2. What about the massive asset recovery? 3. The financial sector recovery levy?” a tweet shared on April 8 by the Imani vice president read.
Also, Simons questioned why the government has not failed to account for the assets it recovered from the financial institution but it keeps mentioning the cost of the clean-up.
“How can govt attribute the rise in national debt to the costs of the cleanup but refuse to account for: 1. Resources from the good assets of those banks they have given to other banks & those still being liquidating/recovered? 2. Taxes imposed on banks to pay for the clean-up?” he questioned.
The financial sector clean-up, which was done in 2019, led to the collapse of 11 banks and several micro-finance institutions as well as saving and loans companies.
Some economists including Prof Stephen Adei have questioned the rationale for the clean-up, saying it is one of the reasons for the current economic challenges the country is facing.
Read the tweet Bright Simons below:
