General News Fri, 17 Aug 2018

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BoG to prosecute ‘dirty’ Bank officials

The Bank of Ghana (BoG) has announced that it will not shield any official or persons who contributed to the collapse of some seven banks recently.

According to the bank, such officials and persons would be made to face the full rigour of the law.

It also said it was instituting measures to introduce more accountability and integrity in its offices and the industry.

In its quest to forestall the banking crisis, the Central Bank offered lifeline of GH¢860 million to erstwhile UT Bank, GH¢610 million to the defunct Capital Bank and GH¢2.2 billion to defunct uniBank Ghana, among others.

In a statement issued dated on Wednesday, 15th August, 2018, the Central Bank said it would take administrative and civil action against such persons and “liaise with relevant investigative and prosecutorial agencies of the State to take appropriate action as needed.”

The affected banks are UT Bank, Capital Bank, uniBank, Sovereign Bank, Construction Bank, Royal Bank and Beige Bank.

Furthermore, it said it has commissioned similar investigations into the affairs of five of the seven failed banks whose licences were revoked.

Ethics and internal investigations

It has recently established a new office called the Office of Ethics and Internal Investigations to strengthen good governance in the bank and promote the highest standards of ethical conduct commensurate with its mandate.

“The Office will investigate all allegations of misconduct by staff, including any role in respect of the collapse of the defunct banks. Staff found culpable will be dealt with in accordance with our human resource policies, and referred to law enforcement agencies, if necessary.”

BoG added that it recently issued a number of directives to strengthen corporate governance, risk management and capital base of banks.

The Central Bank reiterated its commitment to promoting a strong, stable and viable banking industry.

In August 2017, the Bank of Ghana commissioned an independent investigation into circumstances that led to the collapse of UT Bank and Capital Bank.

The investigation was conducted by Boulders Advisors Limited, whose report cited various instances of supervisory weaknesses, regulatory breaches, corporate governance failures, insider dealings and accounting and financial improprieties, among others.

Source: dailyguideafrica.com

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