BoG Blamed For Bank Crisis

A Private legal practitioner, Clara Kasser-Tee has blamed Bank of Ghana (BoG) for the recent collapse of the seven indigenous banks.

She said the situation could have been averted if BoG as a regulator had been effective in enforcing its mandate.

Speaking at the Danquah Institute Forum on Wednesday, in collaboration with Citi FM on the theme, ‘The Banking Clean Up, Are Depositors Safe?’ she said “If Ghanaian businesses have issues running their companies, as part of a regulator and as part of policies going forward you must consider capacity building and make sure you equip your people because at the end of the day those are the people you have.”

The license of seven indigenous banks has been revoked so far by the central bank.

The banks which includes UT, Capital, Beige, Unibank, Soverign, Construction, and Royal bank, according to BoG had their license revoked due to some acts of misconduct.

However, Mrs. Kasser-Tee has asked BoG to explain how the administrative lapses occurred.

“I would want to look at the corporate governance level within the Bank of Ghana itself. The checks and balances in place, how that is resolved, and how those who were responsible are held accountable,” she stressed.

She also questioned how directors or board members are appointed in the country.

According to her, several banking institutions appoint directors based on reputations and relationships.

“There are some who don’t realize that being a board member comes with a responsibility because you must be able to act at all times in the interest of the company. If you don’t have the competence to help the company you can decline and recommend someone who have the competence or you acquire the competence.

Meanwhile, the Finance Minister, Ken Ofori Atta has announced that owners of the defunct banks who are found to have engaged in malpractices and illegalities associated with their set up and operations would be prosecuted.

Speaking at the forum he said “As long as we go ahead to clean up and to prosecute so that it doesn’t happen again. But first and foremost a contagion towards economic crisis has been eliminated [and] we confident about that.”

The forum was aimed at assuring depositors of the safety of their funds.

In attendance were the Minister of Finance, Ken Ofori Atta, Deputy Minister, Charles Adu-Boahen, and Private Legal Practitioner Ace Ankomah.

By Emmanuel Yeboah Britwum