Former executive director of the National Service Scheme (NSS), Dr. Michael Kpessa Whyte, has observed that the rise in ponzi schemes in Ghana lately raises questions about the confidence people have in the traditional banking sector.
According to him, one would have expected people to save and invest in traditional banks which often offer a bit more security to their investments, but however noted, if people rather put their money in ponzi schemes, it raises questions.
Dr. Kpessa Whyte was contributing to a discussion on ponzi schemes on TV3’s Saturday edition of New Day.
The discussion was on the back of the Media General’s first economic dialogue series which empanelled distinguished resource persons to speak on the topic: “Investment in the Face of Ponzi Schemes: How Do we Clean the Mess?”
Matters arising from the economic dialogue
Speakers tackled the core history of the emergence of Ponzi schemes and how to rid the system of such schemes.
The Deputy Director General of the Securities and Exchange Commission (SEC), Paul Ababio, touched on investment risks and the need for information flow on the investment market.
Private Legal practitioner Ace Ankomah also spoke about Ponzi schemes and the laws of Ghana, raising questions on the existence of laws which are yet to be enforced to ensure these schemes are dealt with.
Taking his turn at the Dialogue, Vice President of Imani Ghana Kofi Bentil noted that regulators must be proactive whenever they see the signs of a Ponzi scheme if the country is to avoid them.
President of the Bankers Association of Ghana Alhassan Andani assured all and sundry that the financial sector is still resilient despite recent happenings.
Individuals were cautioned to be vigilant in their dealings with fraudulent institutions.
Churches should teach financial literacy
Dr. Kpessa, like most of the speakers at the dialogue, agreed that there is the need for financial literacy to be taken critically in the country. He believes a financially literate population will be able to make sound financial decisions without falling prey to ponzi schemes.
He also added that churches can be a very good avenue for people to be thought financial knowledge since the churches have a very huge following.