Business News Fri, 4 May 2018

Defunct UT & Capital Bank staff cry over 'exit pay'

Former staff of erstwhile Capital Bank and UT Bank are up in arms with the management of GCB since payment of their “exit pays” after their appointments were terminated in August 2018, still have some outstanding.

Information available to Prime News Ghana indicates that, after the termination of the appointments of about 1,356 workers of the now defunct UT and Capital banks, they were promised “exit pay” but management of GCB that took over these two defunct banks, are not adhering to the promise given them.

Prime News Ghana’s source indicates that, ever since GCB took over, their meetings with the management of GCB have not been successful as expected.

The 1,356 former staff of erstwhile Capital Bank and UT Bank, are therefore, expected to address the media in Accra next week to tell their side of the story.

A press release inviting the media to the media briefing signed by the Raymond Addai-Danquah and Stephen Ernest Aning, who are spokespersons for the former staff of erstwhile Capital Bank and UT Bank and sighted by Prime News Ghana, said, “will like to invite your media house to a press conference to discuss outstanding exit pay and allied issues”.

The release said the media briefing will take place on “Tuesday May 8, 2018, at 9:30am at the International Press Centre”, in Accra.

“The media has been our only ally in these trying times and we hope you will make time to attend this brief event”, the statement added.


The Bank of Ghana (BoG) revoked the Licences of UT Bank Ltd and Capital Bank Ltd on August 8, 2018, due to severe impairment of their capital.

The BoG approved a Purchase and Assumption transaction with GCB Bank Ltd that transfers all deposits and selected assets of UT Bank Ltd and Capital Bank Ltd to GCB Bank Ltd.

A statement issued by the Communications Department of the BoG said the remaining assets and liabilities would be realized and settled through a receivership process to be undertaken by Messrs Vish Ashiagbor and Eric Nana Nipah of PricewaterhouseCoopers (PwC).

It said the main offices and branches of UT Bank and Capital Bank would be under the control of GCB Bank.

The statement assured customers of UT Bank and Capital Bank that they would continue to have access to their funds.

“UT Bank and Capital Bank branches and ATMs will continue to operate as normal as GCB bank branches and ATMs. All staff in the interim will become staff of GCB Bank and GCB Bank will negotiate the terms of their contract,” the statement said.

GCB was selected amongst three others on the basis of purchase price, cost of funding, branches to be retained, staff to be employed and impact on the acquiring bank’s capital adequacy ratio.

The BoG assured the public that all customers can continue normal banking business at all UT Bank and Capital Bank facilities which are now branches of GCB Bank.

The approval by the BoG of this transaction is to strengthen Ghana’s banking sector, ensure financial stability and protect depositors’ funds, the statement added.

“The Bank of Ghana reassures customers of UT Bank and Capital Bank that their money is safe and they can continue to do business at their respective branches which are now the branches of GCB Bank,” it said.
Source: Prime News Ghana
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