The Alliance For Accountable Governance (AFAG) has said government of Ghana and its Central Bank headed by Dr Phillip Addison are being “destructive and irresponsible” in handling the banking crisis, and more irresponsible, AFAG said, was a screamer notice published by the Bank of Ghana in newspapers to warn Savings and Loans companies that “They are next!”, after the Banks.
In a release that was not personalized to the President or Central Bank Governor, AFAG referred to government and the Bank of Ghana as being irresponsible and destructive.
AFAG said there is no show of maturity in any way, in how Dr Addison and his team at the Central Bank are handling affairs or as much as the collapse of the Banks and now the Savings and Loans are concerned.
“AFAG strongly urges the BoG to demonstrate the utmost maturity, and circumspection in carrying out the overall, not-necessary-at this time, financial sector reforms,” AFAG said in the release .
They added: “Concerning the Savings and Loans reforms, there is a clear indication that the BoG has begun on the wrong foot.”
In the AFAG statement signed by its leadership, AFAG called for the application of what it calls “common sense in affairs” of the Banks and the Savings and Loans.
Again, AFAG said they are appalled by the unbridled arrogance of the Central Bank which is behaving like a master of its own affairs, causing problems with the type of decisions they are taking.
According to AFAG, if care is not taken in the Bank of Ghana’s work on Savings and Loans companies, the economy of Ghana will be on its knees.
“Any mistake would bring much of the economy to its knees,” AFAG warned.
“This is more critical when we take into consideration the fact that about 80% of SMEs are funded through them with these SMEs creating about 80% of jobs in the country. With unemployment so high with neither lasting solution nor concrete plans to remedy in place, AFAG would have thought the BoG would be circumspect, but that is not the case.” They said.
“The BoG is so enamored with its statutory powers as to listen to alternative voices.” AFAG bemoaned.