Pulse.com.gh logo

Collapse Of Banks UT, Capital banks collapse cost Ghana GH¢3.4bn - Isaac Adongo

Speaking at a public lecture in Accra organised by a pro-NDC group, Coalition for Restoration (CRF), Mr Adongo said that the collapse of the two banks has so far cost the country GH¢3.4 billion.

  • Published:

The Member of Parliament (MP) for Bolgatanga Central, Mr Isaac Adongo, has expressed worry as to why the government and the Bank of Ghana (BoG) have remained silent on the financial impact of the collapse of UT and Capital banks on the taxpayer.

Speaking at a public lecture in Accra organised by a pro-NDC group, Coalition for Restoration (CRF), Mr Adongo said that the collapse of the two banks has so far cost the country GH¢3.4 billion.

play Isaac Adongo


He said that out of that amount, GH¢1.4 billion was used as liquidity support for the failed banks in 2016 prior to their collapse in August, this year, while “the government now intends to issue a bond of GH¢2 billion to pay the GCB Bank for the difference in the valuation of the selected assets and liabilities taken over.”

“This GH¢3.4 billion is to be borne by the taxpayer and it is three times the budget of the Free SHS programme for the first year. Yet neither the Minister of Finance nor the BoG Governor is telling us about it,” Mr Adongo added.

READ ALSO: Former CEO predicted the collapse of Capital Bank in 2014

The Bank of Ghana withdrew the licences of the two banks on Monday (August 14, 2017) and GCB Bank subsequently took over transfers of all their deposits and selected assets after a purchase agreement.

Mr Adongo said even though the government and the BoG Governor, Dr Ernest Addison, mentioned recklessness and non-adherence to good corporate governance by the banks as the cause of the collapse, it is unfortunate that they [BoG and government] are yet to reveal the cost of the collapse of the two on the taxpayer.

“When the governor met his colleagues at the Chartered Institute of Bankers at a dinner, he failed to tell them how much the taxpayer is paying to clean up the mess of those who collapsed the banks.”

READ ALSO: Mass withdrawals hit UT, Capital ... - Pulse.com.gh

“The taxpayer has already paid GH¢1.4 billion to clean up the mess of the directors and there is a further GH¢2 billion that has been set aside in the 2018 budget to clean up the mess this year. In total, it is costing us GH¢3.4 billion to clean up this mess,” he said.

He believed that the figure could have been used to finance the education of children in the country.

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos

Top Articles

1 Investment banks in Ghana Top 5 investment banks in Ghana and why you...bullet
2 Banking Crises Joe Jackson urges BoG to ‘rate’ banks to restore confidencebullet
3 Salaries In 2018 Here are the dates public workers will be paid in 2018bullet
4 Duncan Amoah Fuel prices up by 2%; COPEC calls for dialogue on pricingbullet
5 Banking In Ghana Stranded customers of First Allied Savings &...bullet
6 Tax Policy Gov't weighs in on controversial MoMo taxbullet
7 Unibank Collapse Shareholders of uniBank unhappy with leaked...bullet
8 How to create a verified PayPal account Learn how to...bullet
9 UT Banks Collapse “I’m saddened by the turn of events” –...bullet
10 Unibank Collapse KPMG denies auditing UniBankbullet

Top Videos

1 Former Capital Bank staff grills pork for survivalbullet
2 Forbes 2018 Africa's billionaires rich listbullet
3 Support Finance minister buys Kantanka carbullet
4 Plane Crash Starbow suspends operations following plane crashbullet
5 Dr Joseph Siaw Agyepong Nobody can collapse my company – JOSPONGbullet
6 Money Alert Meet Africa's richest womanbullet
7 New Discovery Ghana discovers new mineral, lithium in...bullet
8 Bozoma Saint John 10 quotes from Uber top official,...bullet