MP demands resignation of BoG governor

Member of Parliament (MP) for Bolgatanga Central, Isaac Adongo, is demanding the resignation of the governor of the Bank of Ghana over emerging reports that some of the collapsed banks acquired their licences under false pretences. Three of the five local universal banks which have been collapsed by the BoG for being insolvent, were said to have used fraudulent means to procure their licences. According to the governor, Dr. Ernest Addison, the three banks – Beige,Construction and Sovereign banks – used suspicious and non-existent capital to deceive BoG in issuing them with the operating licences. Commenting on the issue Thursday, Mr. Adongo said the revelation exposes weaknesses in the work of BoG which is the regulatory body, adding BoG did not do due diligence as required. “I want Dr. Addison to look Ghanaians in the face and resign”, Mr. Adongo who is a Member of the Finance Committee of Parliament demanded on 3FM’s Sunrise morning show. Read: Hostile regulation collapsing  banking sector – MP He said the governor should have rather announced his resignation as against the announcement of the revocation of licences of the five banks – Beige Capital, Royal Bank, Construction Bank, Unibank and Sovereign Bank – on August 1. “The breaking news we should have heard yesterday was Bank of Ghana resigns,”  he added. Mr. Adongo observed that Dr. Addison issued only two universal banking licences have been issued since he assumed office as governor and those two are part of the three that were cited for acquiring their licences by false pretense. According to him, the governor has failed “100%” and wondered when the governor will issue the right licences. “The Governor should have exercised due diligence before he issued licences to the two banks to make sure the licences are proper and right”, he said. He further claimed Dr. Addison assured Ghanaians no bank was going to be collapsed again after UT and Capital banks collapsed last year but a year down the line, five more have collapsed. Mr. Adongo is convinced that the Bank of Ghana and the Securities and Exchange Commission who are regulators in the banking sector, are deliberately frustrating the sector. He also mentioned that the establishment of the Consolidated Bank which has taken over the five newly collapsed banks, is not well planned. Read:BoG establishes Consolidated Bank for 5 distressed banks “What he has done is just to manage the process of liquidation of the five banks. We don’t even know the cost of liquidation of these five banks and you say you have set up a company whose main purpose is to sell the assets of banks and pay debts of banks”, he stated. By Helena Charway|3news|Ghana]]>