Government of Ghana to soon publish investigations into banks’ collapse, President Akuffo-Addo assures

According to him, preliminary investigations revealed that huge assets of the collapsed banks were diverted.

President Akufo-Addo said this while he gave his Christmas message to Ghanaians.

He assured that those found guilty will be dealt with.

“Investigations into potential criminal conduct are proceeding. As it appears, there has been a massive diversion of assets of these financial institutions. I assure you that the outcome of these inquiries will be made known very soon as well as actions taken to bring those responsible to book,” the President promised.

He further admitted that the decision to collapse these banks was a painful one.

“We have had to take painful but necessary measures to sanitize and save the banking system. A process which I know has brought discomfort to many a household. It is worthy to note however that the jobs of some 6500 workers were saved as a result instead of the 10,000 that could have been lost. In addition to the protection of funds of 4.6 million depositors.

“Thus far, the Ministry of Finance and the Bank of Ghana have worked together to guarantee payments of 100% of deposits of customers of the failed banks which is being done. I have directed the Ministry of Finance to work with the Bank of Ghana to ensure that same applies to customers of microfinance and Savings and Loans Companies whose licenses have been revoked.”

Background

The Central Bank has over the past two years revoked the licenses of several banks, microfinance companies, and Savings and Loans companies.

SEC also, recently, revoked the licenses of some 53 Fund Management Companies.

The 53 fund management companies who have lost their licenses were said to be managing a customer base of about 56,000 whose funds run over GH¢8 billion out of the total GH¢25 billion of the entire securities sector.

SEC explained that the revocation is “in accordance with its mandate of protecting investors and the integrity of the capital market.”

The financial sector clean-up, commenced by the Akufo-Addo administration in August 2017, has led to the collapse of nine universal banks, 347 microfinance companies, 39 microcredit companies or money lenders, 15 savings and loans companies, eight finance house companies, and two non-bank financial institutions.