Finance Minister Cassiel Ato Forson has said the government currently does not have the financial capacity to compensate customers whose funds remain locked up in collapsed financial institutions following Ghana’s financial sector clean-up exercise.
Speaking in an interview, Dr. Ato Forson said the state cannot continue to absorb liabilities created by privately managed financial institutions while the country faces serious economic challenges.
According to him, compensating all affected customers would require huge sums of money that the government does not currently have.
“The money must come from somewhere. Tell me, am I going to stop paying for school feeding? Am I going to stop paying capitation grant?” he questioned during an interview on Joy News.
He added that the government must prioritise key social intervention programmes while working to stabilise the economy and maintain fiscal discipline.
The Finance Minister’s comments have sparked disappointment among customers whose investments remain locked up after the collapse of several banks and fund management companies during Ghana’s financial sector clean-up exercise.
The clean-up, which began in 2017 under the previous Akufo-Addo administration, led to the closure of some banks, savings and loans companies, microfinance institutions and fund management firms.
The Bank of Ghana introduced the exercise to restore confidence and stability in the financial sector after concerns over poor management, insolvency and regulatory breaches.
Although the government paid billions of cedis to protect some depositors, thousands of customers, especially those linked to fund management companies, are yet to receive their investments.
Ahead of the 2024 general election, President John Dramani Mahama and the National Democratic Congress (NDC) promised to reimburse victims of the financial sector clean-up within the first year of an NDC administration.
However, sixteen months after the NDC returned to power, many affected customers say there is still no clear roadmap for compensation.
Convener of the Aggrieved Customers of Gold Coast Fund Management, Charles Nyame, accused the government of abandoning promises made during the election campaign.
The group has also threatened fresh protests if no provision is made for compensation in the upcoming mid-year budget review.
