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General News of Tuesday, 15 August 2017


UT, Capital Bank workers to be put on probation

Workers of UT AND Capital Bank will be put on probation for 6 months while the full transition of their companies into GCB Bank Ltd is completed.

The transition is expected to take about six months to be completed. Related stories

Citi Business News understands following the probation at least a quarter of workers of both banks will be absorbed while the remaining are likely to lose their jobs.

Sources familiar with the development say top level management of both banks especially those found guilty of causing the collapse of the two banks will be the hardest hit.

The Bank of Ghana (BoG) yesterday- August 14, 2017, served notice it will punish any individual or persons whose actions may have led to the collapse of UT Bank and Capital Bank.

The Governor of the Bank of Ghana, Dr. Ernest Addison during a press conference explained that the move is to sanitize the banking sector and make it more robust.

“The last phase of the BoG’s action would involve a thorough investigation of operations of UT Bank and Capital Bank and appropriate action will be taken against shareholders, Directors, and key a Management personnel who are found to be culpable,” Governor Ernest Addison stated.

Financial analyst Mr Mahama Iddrisu speaking on the fate of the workers said although there would be some high level of retrenchment there are various options available in dealing with the matter.

‘There will be clashes of posts and clashes of portfolios and clashes of schedules, those who cannot stay because they think they are not getting what they want and they have other offers are the two groups".

"The next group is those who want to stay and contribute their quota to the success of the banks. The MD’s will not be seated as MDs. If they still want to take up some portfolios in the bigger bank, they will have to do that and it also depends on the package and their contribution, whether positive or negative.

So it’s undoubtedly clear that not everybody will be guaranteed but I can assure you that the middle and the down level will definitely have some level of peace there. It is the top level that will probably have to be cleared somewhere’. He stated.

The Central Bank yesterday, granted GCB Bank the permission to purchase UT Bank and Capital Bank over the two bank’s inability to sustain their operations due to low insolvency.