The Institute for Liberty and Policy Innovation (ILAPI) has voiced strong opposition to the government's proposal to use dormant bank accounts for national development funding. This plan, suggested by the Minister for Finance, raises significant constitutional, economic, and ethical concerns for the nation.
ILAPI argues that appropriating private savings, even inactive ones, threatens public trust in Ghana's banking system. The organization stresses that citizens' savings are private property, regardless of their activity status. This approach could erode confidence in the financial sector and discourage future savings.
This development occurs as Ghana faces urgent pressure to mobilize domestic resources to address fiscal challenges. The government has been seeking various avenues to bolster its finances. However, ILAPI believes that such a policy would undermine the long-term stability and integrity of the financial system.
Peter Bismark, Executive Director of ILAPI-Ghana, stated that national development cannot rely on policies that erode property rights. He emphasized that an economy thrives when individuals trust that their assets are safe from arbitrary government intervention. Bismark highlighted that dormant accounts are not abandoned simply because they are inactive for a period.
ILAPI points out several legitimate reasons for account inactivity. These include long-term savings, overseas migration, illness, ongoing inheritance disputes, and retirement planning. Financial institutions already have clear mechanisms to reactivate these accounts once ownership is verified, according to ILAPI.
The policy group asserts that the government's primary goal should be reuniting citizens with their money. Converting dormant balances into government revenue for fiscal convenience is not the correct approach. This would shift the focus from protecting private assets to using them as a quick fix for budget shortfalls.
Instead of targeting private savings, ILAPI urges the state to focus on structural fiscal discipline. This includes cutting unbudgeted and inefficient public expenditure to create fiscal space. Strengthening accountability and anti-corruption mechanisms to recover misappropriated funds is also crucial.
ILAPI also calls for a publicly accessible, transparent online registry to help families trace and claim missing assets. The organization believes that eliminating administrative bottlenecks would allow families to access these funds efficiently. This would directly help lift households out of poverty.
To ensure proper governance and safeguard constitutional rights, ILAPI proposes establishing an Independent Unclaimed Assets Trust. This trust would operate under strict statutory protections, free from political interference or fiscal raiding. It would guarantee that legitimate account holders or their heirs retain perpetual rights to make claims.
The proposed trust would be required to publish mandatory, regular public audits and financial reports. This ensures total operational transparency. Idle balances would be managed conservatively in low-risk investment instruments to maintain sufficient liquidity for incoming ownership claims. All assets would be held strictly in trust, not treated as standard government revenue.
ILAPI urges policymakers to abandon any proposal that treats private savings as fiscal funding. The organization advocates for reforms that expand economic prosperity, uphold fiscal discipline, and preserve constitutional protections for all Ghanaians. This approach would foster a more stable and trustworthy financial environment.