GFL blames Bawumia for banking sector clean-up mess

On Sunday, the Ghana Federation of Labour (GFL) held Vice President Dr. Mahamudu Bawumia responsible for the negative outcomes of the banking sector cleanup, which led to widespread job losses and the collapse of local banks.

GFL Secretary General Mr. Abraham Koomson emphasized that Dr. Bawumia should be held accountable for his role as head of the government’s economic management team and as former deputy governor of the Bank of Ghana, as his advice influenced the cleanup’s execution.

"The decision to proceed with the banking sector reform under the New Patriotic Party (NPP) government, led by President Nana Addo Dankwa Akufo-Addo, was largely based on Dr. Bawumia’s recommendations," Koomson stated. “He cannot escape responsibility for the resulting hardships."

“Thousands of Ghanaians lost their jobs; some lost their life savings, while others are still struggling with the consequences of Dr. Bawumia’s economic advice. He must face reality and accept responsibility for the outcome,” Koomson added.

Speaking further, Koomson called on Dr. Bawumia to explain his role in the banking sector cleanup to Ghanaians, particularly as he now stands as the NPP's presidential candidate. He stressed that both Dr. Bawumia and the NPP owe Ghanaians an account of the cleanup's effects. "Industry players and Ghanaians need clarity on what led to the banking crisis and how effective the reforms have been," he added.

Koomson posed additional questions for Dr. Bawumia: "What role did the government play in the sector's downfall? How were decisions made to close banks? What happened to affected workers? How can similar crises be avoided in the future? And what is the current state of the banking sector?"

The GFL also highlighted a need for transparency and accountability, especially regarding economic policies that significantly impact citizens' lives. Mr. Koomson noted that as the NPP seeks a third term in office, it is crucial for the party and Dr. Bawumia to address the ongoing impact of the banking sector cleanup on ordinary Ghanaians.

The cleanup, initiated as a measure to stabilize and strengthen the banking sector, led to the closure of several indigenous banks and significant job losses within the banking workforce.

Additionally, Mr. Koomson expressed concerns about Ghana’s democratic landscape, asserting that the NPP under Akufo-Addo and Dr. Bawumia has contributed to a "democratic recession." He claimed that under their leadership, democratic institutions have been weakened, civil liberties eroded, and authoritarian tendencies have emerged. “The country is experiencing restricted freedoms in speech, assembly, and press, alongside a weakened rule of law and judicial independence,” he stated.

Koomson accused the NPP of undermining governance bodies and noted a trend toward populist, authoritarian methods, which he claimed contradict the party’s democratic image. He predicted that due to widespread hardships—including the collapse of local banks, investment losses, excessive borrowing, high-interest rates, a struggling cedi, and general economic difficulties—the NPP under Dr. Bawumia might face significant challenges in securing even 30 percent of votes in a free and fair election.