• John Kumah said, the establishment of Development Bank of Ghana does not require legislation
• He said there are so many ways of setting up a bank in Ghana
• The minority has vowed to oppose the government decision in setting up the bank
John Kumah, a deputy finance minister, has dismissed suggestions that it is illegal for the government to set a national bank without an Act of Parliament.
According to him, there are many ways to set up a bank in Ghana, therefore, the government does not need a piece of legislation to establish the Development Bank of Ghana.
He said, the government of Ghana has chosen to use existing laws as well as structures to set up the bank.
Kumah explained on Joy FM, Thursday, September 2, that, “I think that what is going on is not illegal or contrary to our laws. The Minister of Finance is going through the existing banking regime, for instance, securing licenses from the Bank of Ghana, [and], operating and setting up structures within the banking governance regime that is already existing. it is not wholly true that you could do this by setting up legislation.”
He also dismissed claims that the finance minister has not furnished MPs with the needed information on the bank government intends to establish.
He said, in the 2021 budget, a seed fund of about GH¢300 million was earmarked for the bank. It was highlighted and additional information was captured in the 2021 mid-year budget review statement.
“So (with) all these, every time the Finance Minister has been to Parliament, he has informed them about steps that have been taken to set up the Development Bank of Ghana…So let’s not make it look like the Finance Minister is taking revenue from the government without informing Parliament about what he is using it for,” John Kumah said.
He noted that, the government has chosen to not set up the bank via an Act because, it is to steer the bank away from politics.
“If you choose to go by an Act of Parliament, it means that the President or the government will have to appoint the Board and then eventually, it may turn out to become political. But, they are choosing to set it up within the existing structures.”
“I heard the Minority Leader say they will oppose any allocation for such an arrangement, but the government has already spent monies on various banks without going for any Act but still within the banking structures, the Bank of Ghana licensing regime and the Banking Act,” John Kumah noted.
He, however, stated that, should the government need an Act or choose to set up the bank using one, the Finance Ministry will not hesitate to do so.