Articles by Abubakar Ibrahim

World

John Awuah blames Ghana’s lending crisis on deep structural failures

CEO of the Ghana Association of Banks (GAB), John Awuah, says the challenges in Ghana’s lending system reflect the character of the country and deep structural deficiencies that extend far beyond the banks themselves. Speaking on JoyNews’ PM Express on November 12, he said that comparing Ghana’s lending rates to those in Côte d’Ivoire exposes systemic problems that have nothing to do with banking discipline alone. He pointed out that many of the banks operating in Ghana also operate in Côte d’Ivoire, yet they lend at much lower rates there. “Half of the banks operating in Ghana are also operating in Côte d’Ivoire — talk of the Ecobanks, Access Bank and the likes. How is it that in Côte d’Ivoire, the same bank is able to lend at the rate we are talking about?” he asked. According to him, the difference is not simply about risk or management. It is about the broader systems that support financial operations. “It’s a character of a country and the structural deficiencies that we have in this country,” he said. He explained that processes within key state institutions affect how banks function and how credit risk is assessed. “We have a lot of structural bottlenecks — from the Lands Commission to the court system to credit culture,” he noted. Mr. Awuah said the absence of a unified credit reporting system makes it difficult for banks to properly assess loan applicants. “If Mr Joseph Obeng [GUTA president who was also on the show] approaches a bank to borrow, let’s say ¢100,000, all the bank could do is say, Oh, where else do you have exposure? It is word of mouth. There is no mechanism for having a 360 view of the customer,” he explained. He said borrowers often withhold information about other debts, making it impossible for banks to assess their true financial exposure. “Whether he has a supplier’s credit, he won’t disclose to the bank. Whether he has taken a loan from the landlord of the property where he rents, whether he is even in arrears, he won’t disclose to the bank,” Mr Awuah said. This lack of transparency, he warned, distorts lending decisions and increases the risk of loan defaults. “So the bank gives ¢100,000, thinking it is going to maybe bring goods from China to sell, make money, and pay back the loan. "Half of it goes to pay the supplier, another half goes to pay rent and salary in arrears. By the time you realise, what you funded is gone. Where is he going to get the money to pay you back?” he said. Mr Awuah insisted that Ghana’s lending environment cannot be fixed by focusing on banks alone. The weaknesses, he said, lie in the national systems that define how information flows, how property is verified, and how the courts enforce credit agreements. “The system that gives the bank a 360 view of the customer is non-existent,” he emphasised.

4 hours ago

Politics

Suspend, decentralise, reform – Annoh-Dompreh pleads after El-Wak deaths

The Minority Chief Whip, Frank Annoh-Dompreh, has made an emotional plea to the government to suspend and reform the Ghana Armed Forces recruitment process following the deaths at the El-Wak Sports Stadium. Speaking on the floor of Parliament on Tuesday, November 12, the Nsawam-Adoagyiri MP described the incident as a profound tragedy that exposed deep failures in the system. “It is with deep concern and sorrow that I make this important statement to recognise the impact of the tragic incident that has been reported in our media space just this morning; the death of six potential recruits for the Ghana Armed Forces, which took place at the El-Wak Sports Stadium in Accra,” he said. He noted that the confirmation by the Ghana Armed Forces had thrown the entire nation into mourning. “Indeed, as has been confirmed by the GAF in its press statement issued this morning, we have all been caused to recline to mourning. Our heavy hearts go out to the families of those victims, including the several others who have been injured on various levels of severity and are receiving treatment,” he said. Mr Annor-Dompreh reflected on the fragility of life, quoting Shakespeare. “At the hearing of this news, I thought of the words of Shakespeare in The Tempest when he said, ‘We are such stuff as dreams are made on; and our little life is rounded with a sleep.’ "These victims were once among thousands of Ghanaians waiting for the opportunity to join the Ghana Armed Forces, but met their fate in such an unfortunate event.” He said the tragedy should not be treated as an isolated accident but as a sign of a broken system. “My grief heightened when other reports came indicating that the death toll was now at least twelve persons. It then came clearly to me that we must act immediately to resolve the risks associated with such recruitment processes, which have lingered for too long a time.” Calling for urgent action, the Minority Chief Whip said, “I resolved to make this important call as the first step to immediately suspend the recruitment processes for the time being. "We also must urgently ensure that the process be decentralised to address the excessively large crowds as well as the other risks faced by people travelling from various parts of the country.” He called on the Defence Ministry to appear before Parliament to explain how such a tragedy could occur and what steps would be taken next. “As an arm of government, we urgently need the Deputy Minister for Defence to come to the House and brief the people on what alternative measures will be employed to deal with such risks.” Mr Annoh-Dompreh said the country must see the incident for what it truly is — a collective failure. “This is not merely a tragic accident; it is a profound and systemic failure, and the indictment of a system that has lost its effectiveness. This sad news from El-Wak is a deafening wake-up call. It is a direct summons to the Ghana Armed Forces and the Ministry of Defence, and the nation at large.” He warned that the tragedy raises questions far beyond recruitment procedures. “The question is no longer about protocol or procedure; it is about humanity and leadership.” In his closing remarks, the MP urged a total review of recruitment practices. “In the spirit of patriotism, and the begging need to honour those bold, hopeful victims, whose spirits led them only to the brink of true service to their nation, Ghana, we must review the existing practices relating to these recruitments.” He cautioned that future recruitment drives could be crippled by public fear if reforms are not made. “Let us bear in mind that a greater blow to our nation will be the day that men and women refuse to enlist because of the many challenges the Service agencies’ recruitments are plagued with.” Mr Annoh-Dompreh said his appeal was not an attack on any state institution but a call for empathy and reform. “My call is simple and devoid of ill will to any agency of the state, but rather an advocacy for the teeming youth who will today or tomorrow be faced with the same risks. Let it not be said that we looked on with heavy hearts and folded arms.”

1 days ago

Politics

This is not an accident, it’s a wake-up call – Annoh-Dompreh on El-Wak disaster

Minority Chief Whip Frank Annoh-Dompreh has described the El-Wak Sports Stadium tragedy as a wake-up call to the nation and a sign of systemic failure. The Nsawam-Adoagyiri MP, speaking on the floor of Parliament on Tuesday, November 12, said the deaths of young Ghanaians seeking to join the Ghana Armed Forces must not be treated as a routine accident. “This is not merely a tragic accident; it is a profound and systemic failure, and the indictment of a system that has lost its effectiveness,” he stated. “This sad news from El-Wak is a deafening wake-up call. It is a direct summons to the Ghana Armed Forces and the Ministry of Defence, and the nation at large. The question is no longer about protocol or procedure; it is about humanity and leadership.” Mr Annoh-Dompreh said the news of the tragedy left him deeply shaken. “It is with deep concern and sorrow that I make this important statement to recognise the impact of the tragic incident that has been reported in our media space just this morning; the death of six potential recruits for the Ghana Armed Forces (GAF), which took place at the El-Wak Sports Stadium in Accra,” he told the House. He noted that the incident had since claimed more lives. “My grief heightened when other reports came indicating that the death toll was now at least 12 persons,” he said. Annor-Dompreh called for immediate action to prevent such incidents in the future. “We must act immediately to resolve the risks associated with such recruitment processes, which have lingered for too long a time,” he urged. “I resolved to make this important call as the first step to immediately suspend the recruitment processes for the time being. We also must urgently ensure that the process be decentralised to address the excessively large crowds as well as the other risks faced by people travelling from various parts of the country.” He said the Deputy Minister for Defence must appear before Parliament to brief the House on alternative measures to protect prospective recruits. “As an arm of government, we urgently need the Deputy Minister for Defence to come to the House and brief the people on what alternative measures will be employed to deal with such risks,” he said. Annoh-Dompreh urged a national review of recruitment practices to restore confidence and honour the memory of the victims. “In the spirit of patriotism, and the begging need to honour those bold, hopeful victims, whose spirits led them only to the brink of true service to their nation, Ghana, we must review the existing practices relating to these recruitments,” he said. He warned that failure to act decisively could deter future enlistments. “Let us bear in mind that a greater blow to our nation will be the day that men and women refuse to enlist because of the many challenges the Service agencies’ recruitments are plagued with,” he added. He ended his statement with an emotional appeal for responsibility and leadership. “My call is simple and devoid of ill will to any agency of the state, but rather an advocacy for the teeming youth who will today or tomorrow be faced with the same risks. Let it not be said that we looked on with heavy hearts and folded arms.”

1 days ago

Politics

El-Wak tragedy exposes systemic rot in military recruitment – Minority Chief Whip

Minority Chief Whip Frank Annoh-Dompreh has described the El-Wak tragedy as a revelation of deep systemic failure within Ghana’s military recruitment process. Speaking on the floor of Parliament hours after the incident on November 12, the Nsawam-Adoagyiri MP said the nation must act immediately to correct the lapses that led to the deaths of the young recruits. “Mr Speaker, it is with deep concern and sorrow that I make this important statement to recognise the impact of the tragic incident that has been reported in our media space just this morning; the death of six potential recruits for the Ghana Armed Forces (GAF) which took place at the El-Wak Sports Stadium in Accra,” he said. He noted that the Ghana Armed Forces had confirmed the incident in a press statement earlier in the day. “Indeed, as has been confirmed by the GAF in its press statement issued this morning, we have all been caused to recline to mourning. Our heavy hearts go out to the families of those victims, including the several others who have been injured on various levels of severity and are receiving treatment.” Mr Annoh-Dompreh reflected on the tragedy with a quote from Shakespeare. “At the hearing of this news, I thought of the words of Shakespeare in The Tempest when he said, ‘We are such stuff as dreams are made on; and our little life is rounded with a sleep.’ "These victims were once among thousands of Ghanaians waiting for the opportunity to join the Ghana Armed Forces, but met their fate in such an unfortunate event. This is no small matter to shelve, and as concerned and indeed affected leaders, we must move to restore hope in our people even in this time of grief.” He said his grief deepened when reports showed that the death toll had risen to twelve. “My grief heightened when other reports came indicating that the death toll was now at least twelve persons,” he said. “It then came clearly to me that we must act immediately to resolve the risks associated with such recruitment processes, which have lingered for too long a time.” The Minority Chief Whip called for an immediate suspension of the ongoing recruitment process. “I resolved to make this important call as the first step to immediately suspend the recruitment processes for the time,” he said. He further urged the decentralisation of the process to prevent overcrowding. “We also must urgently ensure that the process be decentralised to address the excessively large crowds as well as the other risks faced by people travelling from various parts of the country,” he added. Mr Annoh-Dompreh called for accountability and transparency from the Defence Ministry. “As an arm of government, we urgently need the Deputy Minister for Defence to come to the House and brief the people on what alternative measures will be employed to deal with such risks,” he said. He stressed that the tragedy must be seen as a national failure, not an isolated mishap. “This is not merely a tragic accident; it is a profound and systemic failure, and the indictment of a system that has lost its effectiveness. This sad news from El-Wak is a deafening wake-up call. "It is a direct summons to the Ghana Armed Forces and the Ministry of Defence, and the nation at large. The question is no longer about protocol or procedure; it is about humanity and leadership.” The MP urged Parliament to review recruitment practices in honour of the victims. “In the spirit of patriotism, and the begging need to honour those bold, hopeful victims, whose spirits led them only to the brink of true service to their nation, Ghana, we must review the existing practices relating to these recruitments,” he said. He warned that failure to reform could deter future enlistment. “Let us bear in mind that a greater blow to our nation will be the day that men and women refuse to enlist because of the many challenges the Service agencies’ recruitments are plagued with.” He concluded his statement with a plea for action and compassion. “My call is simple and devoid of ill will to any agency of the state, but rather an advocacy for the teeming youth who will today or tomorrow be faced with the same risks. "Let it not be said that we looked on with heavy hearts and folded arms. I thank you for the opportunity, Mr Speaker.”

1 days ago