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Business News of Wednesday, 9 May 2018

Source: citibusinessnews.com

Ex Capital bank workers lament locked up provident funds

Former workers of defunct Capital bank are livid over what they say is the calculated attempt by their fund managers not to pay their provident funds.

The disclosure comes despite the approval by the receiver of the joint purchase and assumption of UT and Capital banks, PricewaterhouseCoopers (PwC), for payment of such funds to the workers.

The workers tell Citi Business News the development is worrying and are seeking a swift intervention.

The non-payment of the provident fund comes months after PwC sanctioned that the fund managers transfer all funds to their owners with the collapse of the two banks.

Workers of UT bank have been able to access their due but the situation is different with their colleagues from Capital bank.

One of the affected workers of Capital Bank, Philip Yawson tells Citi Business News his inability to access the providence funds has adversely impacted his family.

He has not been absorbed by GCB Bank and says the delay by their fund managers, CBL, also a subsidiary of the capital group, is getting them frustrated.

“The company has refused to respond to our letter we wrote to them just last week; they have been ignoring us and we are tempted to believe they want to tell us that our money is missing,” he said.

Admittedly, not all workers will have access to their funds as the receivers say some workers had pledged their provident funds for loans taken from their banks.

Another affected worker and formerly with UT Bank, Stephen Anning, talks of the alleged decision by GCB Bank to reduce the rank and benefits of majority of the workers of the former banks, which he says has made them worse off.

“You do not make the workers worse off by taking them on at entry levels…they have experience and qualification.”

In all, the workers say they feel embittered as in their words; they were as innocent as the customers of the bank regarding the circumstances leading to the collapse of the two banks.

The former workers are to petition the Presidency this week.

Meanwhile, Philip Yawson is hopeful that the joint receivers will consider them even as government issues a 2 billion cedi bond to cater for the debts created by the two banks and other associated costs.