Funds Used In Supporting Liquidated Banks Will Be Accounted For – Finance Minister

Finance Minister Ken Ofori-Atta has assured that state funds used in supporting the liquidated banks will be fully accounted for.

The assurance follows concerns that the funds, over GH¢8 billion used in assisting the troubled banks may not be recovered.

Background
Government is said to have issued about GH¢2.2 billion bond to support GCB as a result of the acquisition of the good assets of UT and Capital Bank.

The country has also issued over GH¢5 billion to support the operations of Consolidated Bank, the financial institution that took the good assets of the five collapsed banks.

Assurance to recover funds
But speaking at the launch of the Tax Dialogue Program in Accra, the Finance Minister said all these funds would be recovered.

The Minister noted that “if I have to spend about 5.6 billion cedis to bail out the banking system, because I have to protect depositors, the question is not bank failure but I should be able to tell you that the money was stolen by a director or shareholder and it has to be proven very upfront.”

Mr Ofori Atta added that; “We should understand that the problem is not bank failure, but rather individuals that have been irresponsible with the management of these banks, which has brought us into this compromising position”

Launch of Tax Dialogue Program
The Dialogue is to create a forum for key counterparts in tax administration to meet periodically to discuss and resolve tax administration issues in a timely and friendly manager.

Launching the program, Mr Ofori-Atta noted that, “building a cordial relationship between the Ghana Revenue Authority and key taxpayers, consultants and advisors will help enhance tax administration in the country.”

The Tax Dialogue which begun this year has successfully accomplished the following:

• Improvement in payment of VAT refunds
• Payment of due VAT refunds through banks transfers instead of cheques

• Development of tracking arrangement for a request for private ruling letters to ensure prompt responses and Development of an institutional database for tax rulings to avoid duplication and conflicting

Government is hoping to realize GH¢50.6 billion in revenue this year.