Tuesday, 12 December 2017
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BoG to prosecute officials of UT, Capital Banks over bad loans if…

BoG to prosecute officials of UT, Capital Banks over bad loans if… Featured

The Central Bank says some officials of the two collapsed banks will be prosecuted if they are found to have breached its regulations in the discharge of their duties.

 

 

Head of Supervision at the Bank of Ghana, Raymond Amanfo said investigators are probing the circumstances that led to the collapse of UT and Capital Banks.

He said there are issues about loans given under some suspicious circumstances.

“Is there anything showing the loans were not granted [under the right process]?” he asked, adding this form part of the many things that are being investigated.

The banking regulator on Monday gave its blessing for the acquisition of two banks, UT and Capital banks by GCB Bank Limited.

Bank of Ghana said the two banks have “severe capital impairment” that needed quick solution to save the deposits of customers.

The Central Bank said its approval of the transaction is to strengthen Ghana’s banking sector, ensure financial stability and protect despositors’ funds.

But labour experts have raised issues with regard to the way the acquisition was communicated to employees of the two banks.

The two banks have network strength of 53 with over 900 employees across the country.

Labour analyst, Senyo Adjabeng told Raymond Acquah on Joy FM’s Top Story, the psyche of the employees will be affected because of the way the issue has been handled by the Bank of Ghana.

“There should [have been] a takeover window, but under this circumstances, it will go a long way to affect the workers,” he said.

He entreated the employees to brace up for major shakeup during the retrenchment process, likely to start in the coming weeks.

“This is the purchase assumption of the deal, now come the real system integration,” he warned.

But Mr Amanfo said the Central Bank will be monitoring the process as it is rolled out by GCB Bank.

Although he said the regulator has no role to play after the deal approval, he appealed to GCB Bank to follow the laid down transactional procedures.

He hinted persons found to have played a role in the current status of the two collapsed banks are likely to be prosecuted.

 

Last modified on Tuesday, 15 August 2017 13:26