Finance Committee enquires into UT, Capital Bank takeover

Parliament’s Finance Committee has been enquiring into the takeover of UT and Capital Banks by GCB Bank under the supervision of the Bank of Ghana.

The committee has been demanding answers from various stakeholders associated with the transaction on the true reasons for the transactions, and the processes involved.

Officials from the Bank of Ghana, PricewaterhouseCoopers - the Receiver, Securities and Exchange Commission, the Ghana Stock Exchange and GCB Bank are reported to have responded to probing questions for hours during closed-door sessions.

According to persons close to the committee, the hearings were necessary to give Parliament a clear understanding of why the Banks went under and how regulators managed the transaction.

The Committee Chairman, Dr Assibey-Yeboah later told the media that it is important to determine whether or not the collapse of the Banks was as a result of regulatory failures or unavoidable challenges that the affected banks suffered. He said the Committee chose to hold the hearings in-camera in order not to prejudice the official ongoing investigations by the Receiver, consequent to the transaction.

At the end of the hearings, the committee is reported to have urged the Bank of Ghana and the Securities and Exchange Commission to be firmer in regulating operators within the capital markets and the Banking sector.

A report of the hearings will soon be presented to the Speaker of Parliament.