The Bank of Ghana has created a pool of competent managers who will relieve managers of rural banks proceeding on annual leave, Mr. Joseph Clottey, Chief Manager at the Banking Supervision Department of the bank, said at Dodowa
He told the Annual General Meeting of shareholders of the Shai Rural Bank at Dodowa "the move is to help reduce the high incidence of financial irregularities at the rural banks". Mr. Clottey said that in most rural banks where managers remain at post without a break, "there is the tendency of their indulging in fraudulent acts and practices.
"Additionally, some of these fraud cases normally occur because some members of the board of directors as well as other staffers exploit the weak internal control systems in the banks". The Chief Manager said the Bank of Ghana strongly objects to lease agreements between some rural banks and leasing companies for the supply of computers and other office equipment and machines.
Mr Clottey reminded rural banks of section 149 of the Companies Code of 1963, which "enjoins them to hold their Annual General Meetings each year", and charged rural banks to comply with this law. He cautioned rural banks to take adequate security measures, which, he said, include the prompt renewal of insurance policies, alarm systems, armed guard "to protect their assets from thuggery." Mr Clottey advised the public to cultivate the habit of using cheques and other non-cash products of the banks in their transactions.
He commended the Shai Rural Bank for its excellent performances over the years, and warned management not to be complacent. They should work assiduously to attain greater heights. The Chief Manager urged management of the bank to institute appropriate recovery measures including the adoption of prudent fund management strategies to retrieve all outstanding loans.
