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Business News of Wednesday, 9 May 2018


EX Capital and UT Bank staff call for payment of exit-pay, benefits

Former staff of the defunct Capital Bank and UT Bank have reiterated their appeal to the President and other stakeholders to help address their concerns over the payment of their exit pay and other service benefits.

The ex-staff said it was unfortunate that eight months down the line, they were yet to receive their Exit Pay and are leaving under strenuous conditions.

“We are hopeful that the government will listen to our plight and come to our aid,” Mr Edem Adimado told a press conference in Accra.

Bank of Ghana had revoked the licenses of Capital Bank and UT Bank in August last year due to severe impairment of capital and appointed Messrs Vish Ashiagbor and Eric Nana Nipah both Directors of PricewaterhouseCoopers (Ghana) Limited as Joint Receivers for the purpose of winding down the affairs of the two Banks.

GCB Bank was authorized by Bank of Ghana to take over the management of the defunct Banks under a Purchase and Assumption Agreement.

Mr Adimado said the actions by the Government and the Bank of Ghana to protect depositors’ funds and to ensure that no customer deposit was affected was fundamental to the success of Ghana’s Banking industry.

“We believe that any waver or dither of confidence in the industry by an already unbanked population can only spell doom for the economy,” he said.

However, he said the posture of the Bank of Ghana over the last few weeks anytime the plight of the ex-staff come up is for them to deal with the Receivers.

“We believe that this high level of insensitivity to our plight is highly discomforting and most unfortunate,” he said.

As per the Joint Receivers’ letter dated 15th January, 2018, an agreement was reached with UNICOF; our representatives to pay all staff of these defunct banks an Exit Package.

However, nothing has been paid to staff. We are therefore appealing for all entitlements to be paid to us as a matter of urgency.

He said while the ex-staff as responsible citizens and bankers were mindful of their obligations in the payment of loans secured “we are rightfully asking for our loans to be discounted so we can discharge our obligations to the Receiver.”

“Finally, many of us had outstanding leave days and as per the Labour Act 2003, sections 25 and 26, we are requesting for all outstanding leave to be computed and paid for,” he said.