Bank Of Ghana To Punish Commercial Banks

The Bank of Ghana (BoG) is to take punitive measures against all commercial banks which failed to pay teachers their three months salary arrears on time.

The arrears, released by the Bank of Ghana accrued as a result of the migration of teachers onto the Single Spine Salary Structure (SSSS).

Following a directive from President Mills for an investigation into the delay in the payment of the arrears for teachers. It was found out that the commercial banks caused the delay since the Controller and Accountant-General’s Department facilitated the early release of the money by the Bank of Ghana to them alongside the December salaries for workers.

A reliable source at the Bank of Ghana told the Times yesterday, that it had taken a strong exception to the failure of the commercial banks to ensure early payment of the arrears, describing it as unfortunate, and stated that ‘the central bank is in the process of sanctioning all the commercial banks found culpable.”

The source said the commercial banks were yet to give reasons for their failure to disburse the arrears to the teachers on time. “The problem was from the banks, and the Central Bank is demanding answers,” it said

The money for the payment of the arrears, the source confirmed, was released by the Central Bank to the Commercial banks on December 16, with the expectation that the accounts of teachers would be credited by December 29, but that did not happen.

It resulted in many teachers having to spend the Christmas without the payment of the arrears owed them.

According to the source, the banks disbursed only the December salaries leaving the three months arrears for unexplained reasons.

In fulfillment of the President’s directive to pay workers on time for the yuletide, all institutions that had been migrated onto the SSSS were paid three months salary arrears in addition to their salary for December.

Ralf Tuffour, Controller and Accountant General, had explained that with the exception of staff of the Ghana Education Service (GES), moneys for the arrears owed teachers had been released, and that teachers were expected to be paid latest by December 29.