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Business News of Monday, 6 August 2018

Source: Myjoyonline.com

Banks closure: Financial analyst calls for independent probe

A Ghanaian financial consultant based in Canada has called for an independent probe into the collapse of the five indigenous banks.

Emmanuel Akrong said an independent probe will settle the issue and safeguard the banking sector because so far the Central Bank's side of the story has been heard.

"We have only heard one side of the story, which only talks about the role played by the bankers and shareholders. We do not know the role the Bank of Ghana played if any," he told Samson Lardy Anyenini on Joy FM/MultiTV's new analysis programme, Newsfile on Saturday.

According to Mr Akrong, there is the need for a critical look at the issue to forestall any future occurrence.

The Bank of Ghana (BoG) on Wednesday announced it has taken over Royal, Sovereign, Beige, Construction and Unique banks and merged them to form Consolidated Bank Ghana Limited.

The closed banks were said to be facing liquidity challenges with some of their directors and board members accused of directly contributing to the crisis.

Government has made ¢450 million available for the Consolidated Bank as starting capital and has named Daniel Addo as its CEO.



Commenting on the development, the financial consultant said, "my initial assessment is that parliament and Ministry of Finance should set up an independent committee or a consultant to look into this from end to end.

"In this whole thing, BoG is a bit conflicted...it is a total failure of their part and on the part of the auditors...I will not hold any breath for any of those bankers who did wrong. But if the BoG allowed the banks to cross the red light 10 times before closure, then there is something wrong that needs looking at," he said.

Also contributing on the discussion, the host of Good Evening Ghana, Paul Adom Otchere, called out the BoG Governor for absolving the Central Bank from the mess the banks found themselves in leading to their eventual closure.

He said there was an obvious dereliction of duty by Dr Addison which led to the closure of the banks forcing the creation of Consolidated Bank Ghana Limited.

The Board member of National Communication Authority (NCA) said he was worried that the Governor failed in his role to protect public when it comes to where they bank their monies and other valuables.