A Senior Lecturer at the University of Ghana Business School (UGBS), Dr. Lord Mensah is calling on the National Board for Small Scale Industries (NBSSI) to win itself from government after the COVID-19 pandemic.
According to the University Lecturer, NBSSI should be able to stand on its own after receiving 600 million Ghana Cedis from government as stimulus package to disburse to Small and Medium Enterprises (SMEs) which are in need of financial support due to the novel coronavirus pandemic.
Dr. Mensah made the call when contributing to a discussion via zoom on Joy TV’s AM Show today. The UGBS Lecturer argued that the Ghc600 million COVID-19 Stimulus package received by NBSSI was more than enough to setup a full-fledge commercial bank. Thus NBSSI should be independent of government support after the pandemic.
“One needs only 400 million Ghana Cedis to set up a commercial bank in Ghana. Hance NBSSI should be able to work efficiently and effectively with Ghc600 million to make a huge returns on investment to take care of their operations because beneficiaries of the stimulus package will pay interest cum principal on whatever money they receive” Dr. Mensah maintained.
In a quick reaction to Dr. Mensah’s call, the Deputy Executive Director, NBSSI, Madam Armo-Himbson who was seated in the studio explained that the Ghc600 million COVID-19 Stimulus package does not sit in their account.
“None of the Ghc600 million COVID-19 Stimulus package sits in our account. Every pesewa is sent to the selected Ghanaian local banks which the government intends to build their capacity through this initiative are doing the disbursement and collection of repayment of loans” she pointed out.
Madam Armo-Himbson further explained that interest accrue from loans goes to the banks but not NBSSI. “The banks are barring the risk of given out the loans and also to ensure that there are no defaults in repayment of the loans by beneficiaries” she added.
But UGBS Lecturer still maintained his stands that the NBSSI should be able to stand on its own after the COVID-19 pandemic. Saying managers of the NBSSI after the corona-virus pandemic should come out and account to Ghanaians how the funds were disbursed and how many businesses benefited from the package.
Story: Franklin ASARE-DONKOH