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Business News of Thursday, 26 April 2018


Severance packages for staff of defunct UT, Capital banks in limbo

The licences of Capital and UT Banks were revoked by the Bank of Ghana The licences of Capital and UT Banks were revoked by the Bank of Ghana

The body negotiating the severance packages for the staff of defunct UT and Capital Banks has served notice it is unable to tell when payment will be made.

The General Secretary of UNICOF, John Senanu Amegashi said the joint receivers are yet to know the worth of assets of the defunct banks – a development integral to planning the retrenchment packages.

“The joint receivers must be able to realize value from the sale of the assets of these two banks. What we do not know as of today is the value of the assets these two banks have as against the liabilities,” Amegashi said.

The Bank of Ghana revoked the two banks’ licenses due to severe impairment of capital on August 14, 2017, and appointed Messrs Vish Ashiagbor and Eric Nana Nipah – both Directors of PwC – as Joint Receivers for the purpose of winding-down the two banks’ affairs.

GCB Bank was authorised by the Bank of Ghana to take over management of the defunct banks under a Purchase and Assumption Agreement.

A joint statement by former workers of the two banks to Starr Business said: “As a result of this action, the ex-employees of Capital and UT Banks appointed UNICOF to negotiate an Exit Package on behalf of staff. As per the Joint Receivers’ letter dated 15th January, 2018, an agreement was reached with UNICOF to pay all staff of these defunct banks an Exit Package”.

Seven months down the line, the frustrated former workers have no idea how much and when they will be paid.

Speaking to Ghone News, Mr. Amegashi said talks have not been concluded on the packages for the workers.

When asked as to any deadline for the payment of the packages, he opined: “No I can’t say that for now”.