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General News of Wednesday, 5 September 2018

Source: Myjoyonline.com

Nobody at BoG has been punished - Parliamentary probe reveals

Not a single Bank of Ghana official has been punished despite the regulator's admission that it was partly to blame for the collapse of some indigenous banks.

The Governor of the central bank who appeared before a Parliamentary probe into banking crisis failed to show it had sanctioned its officers, a member of the probe John Jinapor said.

He said Ernest Addison beyond admitting the central bank was complicit in the failed banks saga, couldn’t give firm responses on what is being done to punish BOG officials who supervised the collapse.

Between August 2017 and August 2018, seven banks - uniBank, The Beige bank, UT, Capital, Sovereign, Royal and Construction banks - have had their licenses withdrawn by the regulator.

Government merged the liabilities and assets of five defunct banks to create the Consolidated Bank Ghana (CBG). Severe job losses are expected as the staff of these defunct banks have been transferred to CBG.

A parliamentary probe began Wednesday and has heard the central bank governor in an in-camera hearing. Dr. Addison spent three and a half hours at the Finance committee of parliament which is conducting the probe.

But National Democratic Congress MP for Yapei/Kusawgu in the Northern region has expressed disappointment in the Central bank governor over his responses.

"He was evasive", the Minority MP told journalists saying, Dr. Ernest Addison failed to give direct answers to questions thrown at him during the in-camera hearing.

John Jinapor said the governor failed to tell how long workers from the defunct banks who are now at the Consolidated Bank will be engaged.

According to him, the governor said the workers are "not going to lose their jobs immediately".



"We asked him, what does he mean by immediate, was it one month, two months he failed to answer that question. We don't even know the fate of the workers".

Dr. Ernest Addison emerged from the probe and told journalists, it was a pleasure supplying the committee with information.