As the 2024 elections approach, former President John Mahama has made headlines with his promise to restore collapsed banks if elected.
While his pledge may resonate with those affected by recent financial sector challenges, it is essential to scrutinize Mahama’s track record on financial management, particularly during the DKM Diamond Microfinance Ltd. scandal.
In 2015, under John Mahama’s administration, DKM Diamond Microfinance Ltd., a microfinance company based in Sunyani, which was established under his own regime was suspended by the Bank of Ghana for severe regulatory breaches.
The company was found to be running a Ponzi-like scheme, misusing customer deposits for extravagant capital expenditures, maintaining unsustainable interest rates, and misreporting transactions.
This gross mismanagement led to severe liquidity issues and exposed the company’s deep financial despite the evident malpractices, Mahama’s government failed to address the crisis effectively.
DKM’s operations were suspended, and its accounts were frozen, but no substantial measures were taken to secure the funds of thousands of depositors who had their life savings locked up.
The lack of decisive action and financial intervention left countless Ghanaians in financial distress and eroded public trust in the microfinance sector. It was not until President Akufo-Addo’s administration that meaningful steps were taken to resolve the crisis.
In 2020, the government committed to repaying the locked-up funds of DKM customers. By September of that year, 74,000 validated customers had been fully paid, with 13,857 cases remaining outstanding but actively being addressed.
This stark contrast in handling the financial debacle highlights a significant gap in Mahama’s governance and crisis management capabilities. Mahama’s recent promise to restore collapsed banks must be critically examined against his past performance.
If he failed to protect the interests of DKM depositors in 2015, what assurance do Ghanaians have that he will competently handle similar financial challenges in the future? His administration’s inability to act swiftly and effectively during the DKM crisis casts serious doubts on his promises and capacity to manage the nation’s financial sector.
As voters contemplate their choices for the 2024 elections, it is crucial to hold leaders accountable for their past actions.
Mahama’s track record with DKM Diamond Microfinance Ltd. is a clear indicator of his shortcomings in financial oversight and crisis resolution.
Ghanaians deserve a leader who has demonstrated the ability to protect their financial interests and navigate economic challenges with competence and integrity. In the face of empty promises, the electorate must demand accountability and evidence of genuine capability.
The DKM disaster under Mahama’s regime serves as a poignant reminder of the importance of informed voting and the need for leaders who deliver on their commitments, not just in rhetoric but in real, tangible outcomes.
Even though the two events are of different scenarios, the principle of solving the problem cannot be different. If Mahama could not solve the problem of only one Micro-Finance Company, how could he solve the problem of about five banks? Your guess is as good as mine
Editor’s Note: The author is a member of the New Patriotic Party (NPP) National Communication Team. Until recently, he was the Vice Chairman for the NPP in the Asokwa Constituency.
