In August 2017, the Bank of Ghana gave GCB Bank the green light to acquire 2 local banks, UT Bank and Capital Bank.
In August 2018, the Bank of Ghana announced the creation of Consolidated Bank to take over 5 struggling local banks.
The 5 five banks are Beige Bank, Sovereign Bank, Construction Bank, The Royal Bank and Unibank.
The Governor of the Bank of Ghana, Dr. Ernest Addison, said that some banks presented fake documents that made it seem they could meet the new capital requirement.
Meanwhile, it has also emerged that the defunct Capital Bank squandered GHC610 million given to them as liquidity support by the Central Bank.
The same investigative report also indicated that the former Chief Executive Officer (CEO) and Director of defunct UT Bank Mr P.K Amoabeng received payments from a loan defaulting entity, Kofi Jobs Limited.
The loans which amounted to GHC 5m were never disclosed to the Board of the UT Bank.
Members of the general public have asked what the authorities including the auditors of the various defunct banks did before they collapsed.
They argue that auditors, are to give economy confidence in the operations of firms. Third parties relied on the work of those auditors to make decisions and the compromised nature of such accounts left much to be desired.
Here are the auditing firms that were acting as auditors of the collapsed banks
• Beige Bank – Morrison and Associates
• UT and Sovereign Banks – Ernst & Young
• Capital Bank – PKF
• Construction Bank – J. Mills Lamptey and co
• UniBank and Royal Bank – Deloitte and Touche