The Assin Central Member of Parliament for Assin Central, Kennedy AAgyapong has revealed the former president John Dramani Mahama failed to act in respect of collapsed banks.
The New Patriotic Party MP told Adom Badwam show though the ex-president was made aware of the situation whilst in power, he failed to act accordingly.
“Mahama took 80million out of the 130 million cedis used to establish Sovereign Bank . The money was not made available it was needed most”, he claims.
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That notwithstanding, he says through government intervention, depositors are able to get their investments through deposits back.
“The government has cushioned the collapsed banks and even though their withdrawals from these banks are facilitated by the Central Bank, it is paid by the taxpayers”.
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Licensed in January 2016 as a universal bank, the Sovereign Bank Limited began operations in April 2016.
Bank of Ghana’s investigations however revealed the bank’s initial capital contributed by its shareholders was funded from transfers from Capital Bank and presented to the Bank of Ghana as investments.
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The promoters of the bank admitted to not paying for shares they acquired in the bank.