Story by Carlos Afanou

A video circulating on social media alleged that the Danquah Institute was behind the collapse of financial institutions in the country. But the Executive Director of the institute, Mr. Richard Ahiagbah has reacted to the video and said that it was a grand strategy by the National Democratic Congress (NDC) to poison the atmosphere, create enmity and distort the issues at hand.

According to Mr. Ahiagbah, the wild allegations that the institute has conspired with the government to collapse Unibank and others, was just a wicked motive to ruin their reputation and characterize falsely the government's honest effort to see through a daunting but necessary clean up exercise.

In the circulating video was a male voice detailing how some of the local Ghanaian banks collapsed, alleging that it was a conspired plan of the Akufo Addo government while in opposition.

An unidentified voice in the video accused government of acting on an article put out by Danquah Institute, a think tank affiliated to the ruling New Patriotic Party (NPP) to collapse the banks.

But in a rebuttal, Mr Ahiagbah maintained that “unless you are mischief-preneur, you know that willful collapse of banks or financial institutions, as claimed in the video , is not the disposition of a center-right policy institute or government whose policy bias is the growth and wellness of private enterprise , property and property rights , economic freedom and the rule of law among others.

Mr. Ahiagbah further explained that the government chose , arguably the most challenging approach but one that was realistic and consistent with its compassionate liberal conservative values to protect the interest of depositors, employees and the economy.

He disclosed that the approached had saved the solvent but struggling banks through the Ghana Amalgamated Trust (GAT) and a cleanup of the insolvent banks to promote long-term growth and confidence in the sector.

He continued that the decision was a choice between a comprehensive cleanup or the failed liquidity support approach of the John Mahama administration recalling 2015 and 2016 when the IMF supported the Bank of Ghana to undertake an asset quality review which revealed severe challenges with solvency, asset quality while other suffered capital shortfalls.

He said in his concluding statement, “The John Mahama administration opted to use liquidity support without a plan to address the underlying regulatory deficits and corporate governance malpractices, as it turned out , much of the liquidity support given to its friends were diverted to fund unrelated investments, poor corporate governance practices ruled the day paving the way for related interests deals to the detriment of employees , depositors and investors."
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