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    It's still baffling why a ¢4bn problem cost taxpayers ¢25bn – Mahama on banking cleanup

    Former President John Mahama has said it still beats his understanding, how the Akufo-Addo government used ¢25 billion to fix a ¢4 billion banking sector problem.

    Speaking at the 7th Ghana CEOs Summit and Expo held in Accra, Mr Mahama said he believes there was malice behind the state-sponsored collapse of most of the nine local banks in the exercise.

    'I cannot to this day understand why a GH¢4 billion problem was made to cost the taxpayers GHS25 billion", Mr Mahama said.

    "These banks were asked to capitalise to GHS400 million, and if there were even 10 of them, that would be GHS4 billion and yet with the closure of banks, we incurred a public debt of GHS25 billion guaranteeing depositors’ accounts".

    "Indeed, for some of these banks, there was no problem. It was purely politics or personal vendetta", he said.

    "One bank was shutdown solely because its principal shareholder was being investigated for corruption in a case involving a state enterprise", he cited as an example.

    He said: "We must create an environment where businesses are allowed to grow no matter their political, ethnic or other colourisation".

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