Heritage Bank Saga: BoG politics 'sad', 'disturbing' – Adongo

Bolgatanga Central MP, Isaac Adongo, has criticised the Bank of Ghana (BoG) for dabbling in politics by dint of its revocation of the licence of Heritage Bank.

The local bank’s licence was revoked with the explanation by BoG that its majority shareholder, Mr Seidu Agongo, is not “fit and proper” to own a bank because he was being prosecuted by the state in connection with an alleged GHS271 million Ghana Cocoa Board (COCOBOD) fertiliser scandal, which is pending before the high court.

Reacting to the development, the financial analyst told Benjamin Akakpo on Class 91.3FM’s Executive Breakfast Show on Tuesday, 8 January that the action by the apex bank is “sad”.

In his opinion, the BoG deliberately targeted and collapsed Heritage Bank for political reasons.

“It has become very clear that we are now mingling politics with regulation and the earlier this is stopped the better for us,” he said.

He explained that: “There is more political angle to banking and financial sector regulation today than purely technical regulation and that is my biggest worry”.

He questioned why the BoG is not operating as a “political player in the regulatory environment”.

According to him, when anyone conducts an analysis on the “excuses” given for the revocation of the licence, the person will struggle to understand where in the world such practices occur.

He was worried that a legal suit against an individual could form the basis for the revocation of the licence of a bank because the person is the majority shareholder.

For him, it is wrong for the BoG to cancel Heritage Bank’s licence based on a suspicion which has not been confirmed or verified.

Mr Adongo said “the standard of scrutiny [by the BoG] is so abysmal” and must be condemned.