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BoG officials, others to face prosecution over collapse of 7 local banks

Officials of Bank of Ghana (BoG) and persons whose actions or inactions caused the collapse of seven indigenous banks are to brace themselves up for punitive sanctions and prosecution as the central bank commissions independent investigations into events leading to the insolvency of the banks.

The current leadership of the central bank has served notice it will not shield its staff and persons in the industry who contributed to the financial mess as it seeks to introduce stringent accountability and integrity measures in the country’s financial sector.

“Persons whose actions contributed to the collapse of the 7 banks will not be shielded, but will be made to face the full rigour of the relevant laws of Ghana,” a statement issued by BoG Wednesday assured.

BoG said it would explore all both administrative and civil action against those individuals who will be found complicit in the collapsed of the banks.

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

The central bank added it “will liaise with relevant investigative and prosecutorial agencies of the State to take appropriate action as needed”.

In the meantime, the BoG said it has commissioned an independent investigation into the circumstances that led to the collapse of five banks whose licences were revoked for being insolvent just as it did in the case if the UT and Capital banks.

Investigations into UT and Capital banks, BoG said, revealed various instances of supervisory weaknesses, regulatory breaches, corporate governance failures, insider dealings, and accounting and financial improprieties, among others.

BoG said it remains committed to promoting a strong, stable, and viable banking industry built on the values of trust, confidence, and integrity, to support robust macroeconomic development.

Click here to read the full statement

By Irene Amesimeku||Ghana

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