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Business News of Friday, 19 October 2018


Ex UT, Capital banks staff press for exit package payments

EX-employees of erstwhile UT and Capital banks have appealed to the Bank of Ghana (BoG) and the Joint Receivers, PriceWaterhouseCoopers (PWC Ghana), to consider their plight and pay them their exit packages.

The appeal comes in the wake of the recovery of GH¢400 million from the sale of assets of the two defunct banks and debtors, announced by the Joint Receivers in a statement issued on October 9, 2018.

In a statement issued last Wednesday, the ex-employees said although the Joint Receivers admitted that the recoveries would help in paying creditors of the bank, including ex-employees, it was important to highlight that it had been 14 long months since the collapse of the two institutions but ex-employees were yet to receive their exit packages.

“Information available to the group indicates that the total liabilities for staff is about GH¢40 million, which is just 10 per cent of what has been recovered so far by the Joint Receivers. Our lives have been in jeopardy since our banks were liquidated and we are, therefore, appealing to the authorities to intervene and see the ex-employees as a priority and pay their exit packages and other benefits,” the statement said.


On August 14, 2017, ex-employees of the defunct banks were hit with the shocking news that in line with section 123 of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), the Bank of Ghana (BoG) had revoked the licences of their respective banks due to severe impairment of capital.

The BoG appointed Messrs Vish Ashiagbor and Eric Nana Nipah, both Directors of PWC Ghana, as Joint Receivers for the purpose of winding down the affairs of the two banks.

As a result of the receivership, the Joint Receivers terminated the contracts of staff numbering about 1,200.

On September 19, 2017, the ex-employees engaged the Union of Commerce, Industry and Finance (UNICOF) to negotiate an exit pay.

Subsequently, negotiations were held with the Joint Receivers during which an exit pay was agreed for all ex-staff.

The statement added that due to the failure to pay the agreed exit pay, the ex-employees petitioned the President but still did not get any response.

“Despite this agreement, we never received what was due us, necessitating a submission of a petition to President Nana Addo Dankwa Akufo-Addo on May 20, 2018. Sadly, we are yet to receive even an acknowledgement of the receipt of the petition,” the statement said.

Cry of innocent workers

The statement also added that in the last 14 months, life had been tougher than they anticipated.

“We are struggling to feed, pay medical bills, pay rent, pay school fees for our children and also cater for our other dependents.

“We are basically struggling to survive. Unfortunately, some of our colleagues have lost their lives within this torrid period, leaving behind children and other dependents,” it added.

The statement said the ex-staff of the defunct banks were also suffering from the stigma of having worked with those banks.