Prosecute shareholders implicated in banking sector clean-up – Dr. Addison tells government

The Governor of the Bank of Ghana, Dr. Ernest Addison, has urged the government to prosecute shareholders of banks and financial institutions implicated in the financial sector clean-up that took place in 2017.

Dr. Addison argues that there is a need for accountability in light of the rationale for the clean-up exercise. Therefore, individuals responsible for the insolvency of banks and financial institutions must face legal consequences.

Speaking during a joint IMF/Bank of Ghana/Finance Ministry press briefing on July 1, 2024, the BoG Governor expressed concern about the slow pace of the government in bringing the perpetrators to justice.

“It is taking a really long time to really bring all of these matters to a close. However, it is important that the state needs to persevere and pursue these shareholders who have misappropriated depositors’ funds," the BoG Governor said.

“The large amounts of monies that we claim were used to clean up the financial sector, some of these monies are being held in assets by the shareholders and I think that the law needs to be allowed to do its work,” he added.

As part of efforts to strengthen the banking sector, the Bank of Ghana conducted a clean-up exercise in 2017 to ensure stability in the financial sector and bolster the position of banks in the country as part of its mandate.

The exercise, which took place from mid-2017 to January 2020, resulted in a reduction in the number of banks from 34 to 23. Additionally, 347 microfinance institutions, 15 savings and loans, and eight finance houses had their licenses revoked for various breaches, according to the Central Bank.

MA

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