Dr. Nii Kotei Dzani, Group Chief Executive Officer (CEO) of Ideal Financial Holding,
Dr. Nii Kotei Dzani, Group Chief Executive Officer (CEO) of Ideal Financial Holding, has expressed worry about the lack of a deliberate policy by government to help indigenous businesses to grow to build a bright future for the citizenry.
According to him, “The situation whereby local businesses are taxed, sometimes to the point of collapse while foreign companies are granted tax exemption is unacceptable.”
He made the disclosure in a speech during the official opening of Ideal Finance’s first branch outside the Accra-Tema enclave in Kumasi recently.
The Ideal Finance CEO said the unstable currency and the folding up of microfinance institutions were some of the challenges that militated against the growth of the country’s economy, adding that foreign companies repatriate their profits abroad in the name of paying dividends to shareholders.
He also called on government to have a second look at the country’s social intervention programmes since many of the citizens lack the basic necessities of life.
Dr. Abdul Nasiru Isahaku, Second Deputy Governor of BoG, in a speech read on his behalf, said depositors would have the chance to recover their monies in the event of any institutional failure if the Deposit Protection Bill, which is currently before Parliament, is passed into law.
He said the bill had an in-built safety net to protect small savers even though it does not ensure full recovery of deposits.
He said that the new bill would also require banks and Specialized Deposit taking Institutions (SDIs) to adhere to strict prudential norms.
Recent crisis in the microfinance sector has sparked the debate over the protection of consumers of financial services.
The inherent vulnerabilities and risks, coupled with the learnt lessons of the global financial crisis, have called for a re-think of the legal and regulatory regime of the industry, Dr. Isahaku stated.
BoG has put before Parliament another bill – Banking and SDIs Bill – that seeks to strengthen the Central Bank in the area of consolidated supervision, cross-border supervision of banks, bank resolution and registration, among others.
Dr. Isahaku commended Ideal Finance, a subsidiary of Ideal Financial Holding (IFH), for pursuing a growth strategy by opening new branch.
From Ernest Kofi Adu, Kumasi