Banking Cleanup Vital for Ghana’s Stability, Says Akufo-Addo

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KEY POINTS

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• Banking cleanup was necessary to safeguard depositors’ funds and stability.
• Bold legislation and systemic measures were among the anti-corruption policies.
• Accountability institutions received unprecedented budgetary increases for effectiveness.

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President Nana Addo Dankwa Akufo-Addo has reiterated the need for the government to complete the extensive banking sector clean-up as crucial to protecting Ghana’s financial system.

During his last State of the Nation address before parliament, Akufo-Addo found it necessary to quell speculations of the order being a politically motivated act of vengeance, instead posited that the act was a collaborative effort in the best interest of the nation to ensure stability and security of the savings of millions of individuals in Ghana.

Strengthening the protection of the financial system and citizens’ trust

Before highlighting the reform made in the financial sector, Akufo-Addo described the severity of the problems that affected part of Ghana’s financial institutions and banks such as engaging and others that participate in acts that they knew were unlawful.

According to him, these malpractices threatened the foundation of the country’s banking system and jeopardized depositors’ funds.

“Our actions ensured that not a single depositor lost their money, an unprecedented achievement in financial crisis management,” Akufo-Addo said.

And he explained the outcomes of the cleanup stressing that the sector is stronger and ready to spearhead growth in the economy.

More to this, the President applauded the resilience of Ghanaians and stated that for people to start trusting the financial market again it requires great determination.

He said his government’s interventions laid a strong foundation for sustained economic growth, making the banking sector more stable and resilient.

Fighting corruption with action, not rhetoric

On anti-corruption, Akufo-Addo noted that his administration was not an era of rhetoric only in the fight against the corrupt menace but was systemic.

However, he stressed that it was a significant achievement that the government has set up the Office of the Special Prosecutor to prevent anybody from being above the law.

“This office represents my administration’s resolve to tackle corruption head-on,” he said. The office was at first received with a lot of criticism, however, it has now been embraced as a key weapon in the fight against corruption, Akufo-Addo said.

Also, the government approved main legislative changes: the Witness Protection Act of 2018; and the Criminal Offences (Amendment) Act of 2020, which enhanced procedures on corruption, turning the latter from a misdemeanor into a felony, along with higher penalties.

“We enacted key laws such as the Fiscal Responsibility Act and the Anti-Money Laundering Act to strengthen our institutional framework against corruption,” he added.

Empowering accountability institutions through record investments

On his part, to ascertain that accountability institutions are strengthened under his administration, Akufo-Addo indicated that there have been unprecedented budgets for enhancing the institutions.

According to Graphic Online, from 2017 to 2023, the budget for the Commission on Human Rights and Administrative Justice (CHRAJ) grew by 99 Percent, Parliament’s by 100 Percent, the Attorney-General’s Office by 162 Percent, the Audit Service by 258 Percent, and the Police by 274 Percent.

“These investments reflect our dedication to equipping institutions with the tools needed to hold public office holders accountable, including those within my own government,” he said.

Akufo-Addo ended his speech by stressing his government’s achievements in addressing structural problems and laying the foundation for sustainable development in Ghana.