Former President John Mahama says the government has no money to pay all depositors of the collapsed Savings and Loans companies as well as microfinance companies their locked up funds this year despite a directive by President Akufo-Addo to the Ministry of Finance and the Bank of Ghana to pay every single customer.
Mr. Mahama says government will need between GH¢13 billion to GH¢15 billion in addition to the amount already approved by Parliament before all customers of the defunct Savings and Loans and Microfinance companies can be paid.
President Akufo-Addo in his Christmas message in December 2019 directed the Finance Ministry and the Bank of Ghana to provide liquidity to pay all customers their locked up funds. The Private Enterprise Federation recently called on the president to enforce the directive.
But speaking to journalists in Accra on the economy, Mr. Mahama said the budget did not provide for such funding hence government will not be able to pay all customers this year.ADVERTISEMENT
“Everybody wants his money in the shortest possible time and the President says we will pay you your deposits in full, and yet if you look at the budget there is no provision for paying. If you look at the quantum of depositors’ claims that have to be reimbursed, there is no way that this can be paid this year,” he said.
He argued that the best way forward is for government to announce a payment schedule that will spread the payment over time.
“..Because we are in an election year he’s creating the impression that Ghanaians are going to receive their monies,” he said, adding that the “President must be truthful to Ghanaians”.
Mr. Mahama also accused the government of altering its economic figures to make it appear as though the fiscal deficit is under 5 percent when the IMF is saying Ghana’s Fiscal deficit is at 7 percent.
He stated that the IMF’s projection already puts the country’s fiscal deficit above what the government is claiming.