Sack BoG Boss – Adongo tell Gov’t

Member of Parliament for Bolgatanga Central constituency in the Upper East Region, Isaac Adongo says the Governor of the Bank of Ghana, Dr. Ernest Addison must resign. According to him he has supervised the collapse of indigenous banks.

Speaking on Okay FM’s ‘Ade Akye Abia’ programme, he explained that he has also helped some Directors of the defunct banks to misappropriate tax payers money.

The Bank of Ghana last week merged five banks into the Consolidated Bank of Ghana Limited. The affected financial institutions are; Beige, Sovereign, Construction, UniBank and Royal Banks. It follows the insolvency of the five banks after investigations by Bank of Ghana (BoG).

“Government has also issued a bond totalling GHc5.6 billion to cater for bad assets of the five banks,” – Dr Addison said.

Explaining, the Governor said Unibank and Royal Banks were under capitalised and that those banks were beyond rehabilitation. On Royal Bank, he said non performing loans were high, whiles Sovereign Bank obtained its license by false pretences through the use of suspicious and non-existent capital.

But, Hon. Adongo believes Mr. Ernest Addison has shown gross incompetence and that he must resign.

“Collapsing indigenous banks does not make sense. It is just a lazy approach to put banks on their toes. What were they doing when these banks started to experience financial distress. They have the oversight responsibility of monitoring and supervising these banks,” he said.

However General Secretary of the ruling New Patriotic Party (NPP), John Boadu says Mr. Addison should be padded on the shoulder for the work he is doing to sanitize the banking system.

Speaking on the same programme, he explained that though they were not effective in dispensing their duties, Mr. Addison cannot be blamed.

He said it was a painful but necessary decision for the government to take since monies of customers of these banks needed to be protected.