General News Wed, 19 Sep 2018

Collapse of banks result of lawlessness of your gov’t – Ayariga to Akufo-Addo

Ardent critic of the Akufo-Addo administration Hassan Ayariga has hit out at the President following the latter’s remarks regarding the collapse of some seven local banks in the country.

uniBank, Royal Bank, Sovereign Bank, Beige Bank and the Construction Bank were merged into the Consolidated Bank Ghana Limited by the Central Bank after it was discovered that some were struggling to meet new capital requirement declared whereas others had acquired their licences through questionable means.

Prior to the collapse of the five banks, two other banks; Capital and UT had their licences revoked by Bank of Ghana because the liabilities of the two banks overwhelmed their assets.

Hundreds of staffs lost their jobs as a result of the collapse of the banks incurring the wrath of majority of Ghanaians.

The Bank of Ghana noted that persons whose actions contributed to the collapse of the 7 banks will not be shielded, but will be made to face the full rigor of the relevant laws of Ghana.

According to the Central Bank, it will pursue administrative and civil action against such persons found culpable.

In a press statement, BoG said workers whose actions contributed to the collapse of these 7 banks either at BoG or at any of the 7 banks will be dealt with accordingly.

“The Bank of Ghana has recently established a new office called the Office of Ethics and Internal Investigations to strengthen good governance within the Bank and to promote the highest standards of ethical conduct commensurate with the Bank’s mandate. The Office will investigate all allegations of misconduct by staff including any role in respect of the collapse of the defunct banks. Staff found culpable will be dealt with in accordance with our Human Resource policies, and referred to law enforcement agencies, if necessary.”

To buttress the position of government, President Akufo-Addo also indicated that “The story of every bank that has had problems, be they indigenous Ghanaian banks or international banks, like Barings Bank, Lehman Brothers, Bank of Credit and Commerce International (BCCI), each one can be traced to someone or some people breaking the law, or trying to cut corners by flouting regulations.”

The culprits he stressed would face the full rigours of the law.

But the APC founder, Hassan Ayariga believes otherwise and claims the lawlessness exhibited by persons surrounding the President and his party members are to blame for the collapse of the banks.

“Mr. President, the collapse of the seven banks is not as a result of act of lawlessness of the banks but the Act of lawlessness of your government and the gross political incompetence of your appointees. These banks collapsed as a result of your refusal to pay your debts to Ghanaian contractors.

What is lawlessness than a government refusing to pay contractors who diligently executed their projects? Our local banks are distressed because, in their quest to empower Ghanaian contractors, they gave out loans to these businessmen who haven't been paid by your government. Mr. President, our local banks are not collapsing because of lawlessness, pay contractors and the problem is solved! This is common sense,” He stated.
Source: www.ghanaweb.com
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