The financial sector cleanup that was undertaken by the Bank of Ghana (BoG) in collaboration with the Ministry of Finance which resulted in the collapse of nine domestic banks and several Microfinance companies, badly affected the governing New Patriotic Party (NPP) in the 2020 general elections, Member of Parliament for Okaikwei Central, Patrick Yaw Boamah, has said.
He noted that the exercise negatively affected the middle class in the country, a constituency the NPP controls therefore most of these affected persons voted against the party.
He explained that if the government goes ahead to touch individual bondholders under the Domestic Debt Exchange programme, the NPP will suffer badly in the next general elections.
Speaking exclusively to TV3’s Komla Kluste on Monday, January 23, the vice chairman of the Finance Committee said “I am not an advisor to the Finance Minister, he has advisors so I cannot proffer alternatives or say that you could do A, instead of B. He has the full knowledge of facts of the state of our financing and our economy and with the support of his technical advisors, he will be able to make a firm determination as to where and what he wants to take this country to.
“For me, the answer is simple, even with DKM and God is Love, we saw what happened to the NDC and other individuals within that small space. The banking sector cleanup or financial sector cleanup affected [NPP] in a bad way in the 2020 elections. NPP prides itself on having a strong base within the middle class, which was the class that the cleanup affected.
“If you are saying you are going to affect individual bondholders then it means you are putting the party at a higher risk of losing the 2024 general elections because when it comes to people’s savings and investments they don’t look right, they don’t look left, they look for who is going to save them and one promise by somebody can who can’t even honour it, they will take solace in that person.
“So it is a very dangerous curve but I am happy that the Minister says he is going back for further consultations. I pray he comes back and says that I am not touching it, same with Pensions Funds, otherwise the party and the government will suffer dearly because of this singular policy.