Business

Sanctioning UT, Capital banks officials will be in order – Institute of Directors

The Institute Of Directors has welcomed the decision by the Bank of Ghana to sanction those behind the bankruptcy of UT and Capital banks leading to the eventual takeover of the two commercial banks by GCB bank.

Bank of Ghana on Monday announced a takeover of the two commercial banks by GCB Bank, and said it would stop at nothing in ensuring that perpetrators are punished.

“The last phase of the BoG’s action would involve a thorough investigation of operations of UT Bank and Capital Bank and appropriate action will be taken against shareholders, Directors, and key a Management personnel who are found to be culpable,” the BoG Governor, Dr. Ernest Addison said.

The decision has been welcomed by some stakeholders.

Speaking to 3FM BUSINESS, president of the Institute of Directors, Fredrick Ofosu Darko, though welcomed the move, saying “We welcome any move or decision that the central bank will agree on.

“By law directors are responsible for their actions, and they must be held accountable for it. They answer to their stakeholders and higher authorities and so if their actions have resulted in the collapse of the banks, then they should be held responsible,” he said.

Mr Ofosu Darko added: “now the advice is that directors should be more vigilant in whatever they do. They should know that all their actions have effects on others. I believe this should be a wake up call for all of us,” he said

He was speaking at the maiden edition of the Institutes’ bi-monthly business meeting, which brings together members of the Institute and other stakeholders to discuss issues of relevance.

The meeting was themed: Stimulating Public-Private Sector Dialogue: The Place of Key Stakeholders in Leadership and Corporate Governance in the Accelerated Socio Economic Development of Ghana”.

By Grace Asare|3news.com|Ghana

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One Comment

  1. #SHOULD A CHURCH OWN A BANK?
    The new DOOM in the BANK
    Who is the enemy in our country? is it our Money? The Banks? Or the Bank of Ghana?
    The new DOOM in the banking industry in Ghana defines the reliability of the operators of the industry.
    It was just last two years when the Northern part of our country faced the storm in the bank. Some innocent souls in the industry were severely hit by the element and object which were carried by the storm.
    In less than 2 years, the Brong-Ahafo and some part of the Northern saw a rapid growth in small business, infrastructure, companies, transportation and many others.
    The Bank Of Ghana was expected to do to those institutions such as DKM, God Is Love, Little Drop, Jaster Motors, etc just as it did to Capital Bank and UT Bank yesterday on the 14/8/2017.
    I don’t believe the collapsed of the UT Bank and Capital Bank started yesterday and ended yesterday. The due process was followed but the public and the internal workers could not know off. The show casing take over by the Ghana Commercial Bank was unveil yesterday. Could the BOG not do the same to DKM and the rest the previous years?
    There would have been panic withdrawal if the 180 days investigation should have been broadcast. There would have been mob beating if a moratorium notice would have been placed on public notices or on their premises.
    What was the different now? Were the CEOs of DKM and the rest not Ghanaian? Or because they were not political supporters of a Political party, or probably because they are not the pastors.
    Supposed ICGC is a share holder and a beneficiary of Capital Bank or affiliates are the share holders, should the BOG suspend the operations of the church or better still the Christian Council should take over the ICGC church.
    Okey, so it is well noted that all other subsidiaries of DKM and the rest collapsed as well. What shall be the fate of all other subsidiaries of UT Bank and Capital Bank? We are yet to read any publication on that.
    On May, 11th 2015, An official of the UT Bank Sunyani Branch told the aggrieved DKM clients that “we told you they are bad and you still come and withdraw and send to their bank, now you see your money is gone” I remember vividly that, UT Bank was one of the banks who come collect the daily proceeds of DKM everyday with their (Bullow Van)
    I think UT Bank was supposed to have supported DKM in their times of trouble because they were the example of a little bank growing to be a major operating bank in the industry. Their story was inspiring to new banks and other entrepreneurs.
    The biggest lie is that, the UT bank management could not give the Bank a LOAN IN LESS THAN 48 HOURS but still promised the public to give loans in less than 48 hrs.
    Is this promise not a lie? After the BOG has given them 180 days to furnish BOG with plans to inject fresh capital into their operations, i am shock the strategic plan did not include their capability to give themselves a loan in less than 48 hrs.
    The BOG would have advice the Capital bank to quickly and speedily to go for a loan in less than 48 hrs from the loan masters UT Bank.
    If the ICGC was not paying tax to the Government after investing their monies into Capital Bank as share holders then there is a problem.
    If the ICGC could not intervene to give all it has to save the poor customers and poor staff who would be laid off after the takeover then there is a problem.
    The problem is that, the church and their leader who has shares in the collapsed Capital Bank were not ready to lose all they have.
    But Jesus Christ of Nazareth in the Holy Bible, advised the rich man to go sell all that he has and give to the poor then he should come back and follow him. The might have forgotten about that earlier but this an opportunity to remind them. They can change their mind and sell all that belongs to them and give to the poor.
    The Share holders are finished!
    The press release from the operators announced that, share holders of the Capital Bank are not share holders of GCB. Means, your shares in UT Bank and Capital are not automatic transferable to GCB. This means that if you were a share holder of the two collapsed bank, there is no dividend for you at the end of the coming financial year.
    This is why I am advocating that, at least, the leaders of the ICGC should sell all that they have and give to the poor and then come back to follow Jesus Christ as the Head Pastor has been teaching us. The down fall of a man is not end of his life. Even if we fall seven times we shall rise again. A very successful student leader said “he who knows the right now committed the first wrong”. By t.d.wise
    The journey from life to death is a school for our final destination, I always say. So you choose where your destination should be.
    After working in about 5 different financial institutions, I humbly advice you to Save what you can, Spend what you can and Give all what you can.
    Article by:
    T.D. Wise.
    You can invite me for TV and radio discussions or with other media.
    Or call 0245838285

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