BoG Sets Up Office to Probe Directors of Collapsed Banks

The Bank of Ghana (BoG) has established an office of Ethics and Integral Investigations to strengthen good governance within banks in the country.

This is to also promote the highest standards of ethical conduct commensurate with the Bank’s mandate.

A statement issued on Wednesday, mentioned that the office would investigate all allegations of misconduct by staff including any role in respect of the collapse of the defunct banks.

“Staff found culpable will be dealt with in accordance with our Human Resource policies, and referred to law enforcement agencies, if necessary,” the statement read.

This follows after scores of Ghanaians called for the prosecution of Directors of the seven (7) collapsed banks.

An investigation conducted by Boulders Advisors Limited, revealed that the Directors and shareholders of Capital, UT banks whose license were revoked by the Central Bank, engaged in several acts of misconduct leading to the collapse of the bank.

According to the Bank of Ghana, “the report cited various instances of supervisory weakness, regulatory breaches, corporate governance failures, insider dealings, and accounting and financial improprieties among others.”

However, the Central Bank has announced that similar investigation has been commissioned into the affairs of the five failed banks whose licenses were recently revoked.

The bank also announced that it will pursue administrative and civil action against persons whose actions contributed to the collapse of the seven banks.

“As part of the efforts by the current leadership of the Bank of Ghana to introduce more accountability and integrity both within the Bank itself and in the industry, persons whose actions contributed to the collapse of the 7 banks will not be shielded,” the statement read.

By: Emmanuel Yeboah Britwum