The President, Nana Akufo-Addo has said that most finance houses in the country operated what he described as ‘glorified ponzi schemes’ during the presidency of John Dramani Mahama.
Delivering the last State of the Nation Address (SONA) in Parliament, the President said his government stabilised the financial sector which led to the collapse of several of these financial institutions.
“The supervisory agencies were unfortunately not performing their duties. Many of our finance houses were running what can be called glorified Ponzi scheme.”
Therefore, he said, a radical measure must be undertaken to deal with it, hence the clean up exercise.
The approach towards the clean up exercise was criticized by a section on the Ghanaian public with others saying the government could have rescued the failing banks rather than collapsing them.
But last Finance Minister Ken Ofori-Atta defended the approach that was adopted towards the clean-up exercise.