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The Consolidated Bank Ghana Limited (CBG) has announced that all former branches of the local bank will cease operations today, Thursday, February 28, 2019, except two.
Having a number of branches and it will not make business sense to operate all of them therefore, there is going to be huge job losses.
The Receiver at CBG, Vish Ashiagbor said "Please be informed that with the exception of the Tema Community 1 and Suame – Kumasi branches, CBG will cease to operate the former branches of Heritage Bank after close of business on Thursday, 28 February 2019."
In a statement, he said "Unless specifically requested, all the Receiver’s consultant staff will no longer be required to physically report to work at the former branches or Head Office daily."
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The latest development "does not affect the terms of the existing consultancy contract between the Receiver and the Consultant Staff. Accordingly, allowances will be paid in line with the consultancy contracts for the term of the contract which ends on 31 March 2019," it added.
On January 4, the central bank revoked the license of Heritage Bank and merged with Consolidated Bank Ghana.
Governor of the Bank of Ghana, Dr Ernest Addison stated that the operating licenses of Heritage Bank have now been revoked over various issues including low capital.
As a result, selected assets and liabilities of the local bank will now be transferred to the Consolidated Bank.
Dr Ernest Addison also stated that the original source of finance for the bank is currently a basis of criminal prosecution in court.
He said Seidu Agongo was not a "fit and proper person" to be significant shareholder of HBL.
In a statement, Agongo, however, said the BoG's decision is pre-judged one which should not have happened.
He added: "The determination that I am not a fit and proper person to be a significant shareholder of HBL because the Central Bank suspects the funds are derived from illicit or suspicious contracts with the Cocobod is not only calculated to pre-judge the outcome of the criminal proceedings but also violative of the principle of presumption of innocence to which every individual is entitled. Since when has suspicion become a substitute for credible evidence?"
He insisted that in establishing HBL "I engaged in no underhand dealings and, in fact, as the Central Bank itself had attested on many occasions, HBL was a very well governed Ghanaian bank which remained solvent till the very end."