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Business News of Thursday, 23 July 2020

Source: My News GH

Banking clean-up: My reaction was sentimental and not scientific - Baako


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Editor-in-Chief of the New Crusading Guide Newspaper, Abdul Kweku Baako Junior, has revealed that his reaction to the banking sector clean-up was based on sentiments and not scientific, based on his relationship with the owners of the affected banks.

According to him, some reports he saw from accounting professionals such as KPMG were not good enough which justified the decision by the Central Bank to close down those institutions.

“I will be honest with you, it was purely sentimental with no scientific basis. I said it a couple of times here and I think Metro and even on Joy FM. Subsequently, I saw some reports from KPMG. The content was not good enough”, he disclosed on Peace FM’s Kokroko Show, monitored by MyNewsGh.com

“It was a tricky area, but I’m ok some of them went to court and battling the case there…I wish them well”, he emphasized.

“I have said it a couple of times that without the backing of science, meaning which is of evidential value, but rather you [BoG] took a sentimental action without any evidence…I felt for the three banks. Nduom’s bank [GN Bank], Heritage Bank that belongs to that young man, Seidu Agongo (because of his extension into radio we met a couple of times in 2014 and 2015) and Dr. Duffuor’s bank".

"He [Seidu Agongo] is a young man and I appreciated him and I want to see a young man like him who does great things…it was painful his bank went down. The same with uniBank, I will tell say honestly Dr. Dufuor is a personal friend but the action taken against the banks was not right”, he added.

It would be recalled that the Central Bank in 2018 announced the collapse Beige Bank, Heritage, GN Bank, Royal Bank , Unibank, Construction and Sovereign Banks by the Bank of Ghana (BoG) leading to the emergence of Consolidated Bank Ghana Limited.

This came barely a year after the collapse of UT Bank and Capital Banks.

Other banks that were collapsed.

In May 2019, 347 Microfinance Companies also had their licences revoked.

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