Banking rot: OccupyGhana calls for ‘Unrelenting Action’

Pressure group, OccupyGhana, is calling on the Government of the Republic not only to make public the results of all investigations conducted in the rot happening in the banking sector but to ensure that the law (both civil and criminal) is made and allowed to take its course without fear or favou

The group has further called on the government to probe the collapse of seven banks and punish persons found to have breached prudential or banking regulations.

Ghana is currently experiencing a period of uncertainty in the country’s financial sector with many analysts calling for pragmatic measures to save the ailing banking sector.

The government has also issued a bond of GHc5.76 billion to cover the gap between the liability and assets assumed by the Consolidated Bank Ghana Limited which was recently formed following the merging of five struggling local banks.

According to the legislator, not enough concern had been shown by the public that their tax would be used to write off the debt from the collapse of the banks.

”Those in management or other positions of trust who have been implicated and who have to lose their jobs, should lose their jobs. Those whose personal properties have to be seized and sold to pay back the public debt should be taken through the due process. And those who have committed crimes against the Republic should be ruthlessly and mercilessly prosecuted,” the pressure group made up of eminent Ghanaian professionals stated in a press release dated August 13, 2018

The group says it is confident firm actions will be taken to protect the banking sector, which it describes as a critical sector of Ghana’s economy.

Capital Bank’s CEO signature allegedly forged to divert funds – Report An investigative report sighted by THE PUBLISHER NEWSPAPER has noted that the then-Capital Bank CEO, Rev. Fitzgerald Odonkor may have had his signature forged in the authorization of certain deals related to the GHc 610 million liquidity support to the doomed bank.

The management of the Bank, with the approval of the Board Chair, diverted some of the BoG support or other uses.

Some of that money was presented as capital to set up another collapsed bank, Sovereign Bank. Some of that money was presented as capital to set up another collapsed bank, Sovereign Bank.

Read the full press release below.

13th August, 2018

PRESS RELEASE

OCCUPYGHANA CALLS FOR FIRM ACTION TO DEAL WITH ROT EMANATING FROM GHANA’S FINANCIAL SECTOR

OccupyGhana has followed closely, reports on the state of our financial sector, particularly with respect to some private, indigenous banks.

We are horrified at the several, repeated and blatant breaches of the law and rules of banking and corporate governance, plain theft, obvious fraud, naked bribery, undisguised money laundering and criminal causing of financial loss engaged in by regulators, industry players and practitioners, and possibly even auditors.

We are amazed that banks could be established in this country with next to no funds and sometimes with funds stolen from government bailout cash extended to other banks. Shareholders appeared to help themselves to depositors’ funds as if it was their personal “piggy banks.” Directors and auditors apparently breached their fiduciary duties with reckless abandon. Directors also failed to exercise utmost good faith, shamelessly engaged in ultra vires transactions and other deals with conflict of interest and conflict of duty implications.

We are shocked at the failure, refusal or neglect of regulators, in the face of several reports evidencing the obvious wrongs and impending collapse, to do anything to stem the tide or stop the flow, save pouring more bailout money into the banks without asking for collateral or even appointing advisers to control the use of the taxpayer’s monies.

We see near-fatal collapse of the hub of national development caused by the failure of regulatory authority and what is appearing to be major corruption linked to, especially the Banking Supervision Department of the Bank of Ghana.

We can only wait with trepidation what we believe will be the exposure of further and deeper rot when the Central Bank sets to deal with other deposit-taking institutions such as the Microfinance and Savings & Loans companies.

This failure of regulation in one of, if not the most critical sector of our economy, calls for the firmest, most strident, ruthless and decisive action from the Central Bank and the Government. We urge the Government to act immediately to investigate, arrest and prosecute all culprits involved in all instances of fraud perpetrated against the state and theft of depositors’ and taxpayers’ monies.

Citizens have had to rescue the financial sector at least once before, in a major recovery of assets via the Non Performing Asset Recovery Trust (NPART) in the 1990s and we do not expect that we should have to relive that painful experience.

We call on the Government not only to make public the results of all investigations conducted, but to ensure that the law (both civil and criminal) is made and allowed to take its course without fear or favour.

Those in management or other positions of trust who have been implicated and who have to lose their jobs, should lose their jobs. Those whose personal properties have to be seized and sold to pay back the public debt should be taken through the due process. And those who have committed crimes against the Republic should be ruthlessly and mercilessly prosecuted.

We trust that the Government will act urgently and thoroughly to clean the sector of all criminal elements who have caused much damage to our wealth and future recovery.

Yours in the service of God and Country

OccupyGhana