The Minority Caucus of Ghana’s Parliament has sent a note to the Minister of Finance, Ken Ofori-Atta and the Governor of the Bank of Ghana, Dr. Ernest Kwamina Yedu Addison, demanding from the two leaders, the true burden of cost of liquidation of Capital and UT Banks.
They also want firm assurance that the end-2016 budget deficit has been adjusted as well as clarification on the consistent application of the rule on calculating commitments at the end of 2017.
In the view of the National Democratic Congress (NDC) Members of Parliament (MPs), having studied the turn of events in the takeover of the Capital and UT Banks by GCB Bank, they are of the firm view that the taxpayer will bear the cost of the liquidation.
This, according to the NDC MPs, will be done through the issuance of a GH₵1.6 billion bonds and therefore, want the Finance Minister and the Governor of the central bank to speak to the issue.
“We urge you, Hon. Minister and Governor, to respond immediately and explain the entire circumstances of the liquidation to Ghanaians, who will be forced to bear the brunt of the liquidation. This is contrary to the perception that the GCB Bank will absorb the loss as well as the policy prescription in the advanced countries where the burden of these costs are now to be put on shareholders and investors”, a letter dated March 5, 2018, and signed by the Minority Leader, Haruna Iddrisu, and the Ranking Member on the Finance Committee, Cassiel Ato Forson, in part read.
Further to this, the NDC group also wants a pronouncement on the implications of the rule change, especially, with regards to the cut-off rules, thus, end – 2016 debt service amount.
“We note that it is over two months since the 2018 Budget was read. We also observe that the Minister did not pronounce on the implications of the rule change and he has not done so to date. The Governor has also not pronounced on the matter in presenting MPC reports to Ghanaians. We wish to make a formal request on the matter to the Hon. Minister and the Governor, to appraise the Minority of the full implications of the rule change”, the letter in part further read.
In addition to the request, the group wants the Finance Minister and the Governor of the Bank of Ghana to make public the outcome of the audit done on the end-2016 budget deficit which in their opinion, has been adjusted.