Collapsed Banks: BoG Governor not a hero; he slept on his job – Paul Adom-Otchere

Collapsed Banks: BoG Governor not a hero; he slept on his job – Paul Adom-Otchere

Host of Metro TV’s “Good Evening Ghana” show, Paul Adom-Otchere, on Saturday went ballistic on the Governor of Bank of Ghana, Dr Ernest Addison, accusing him of “dereliction” of duty.

The journalist speaking on Multimedia’s News Analysis programme on Joy News, Newsfile, said Dr Addison should be blame for the operations and subsequent collapse of Construction Bank especially.

Quoting Act 930 of the Banking Act to buttress his point, Adom-Otchere, said officials of the Bank of Ghana, particularly the governor was reckless in granting Construction Bank license to commence operations.

“I am disgusted that people are commending Dr Addison for a yeoman’s job; that he has done well by collapsing Construction Bank and others.

“The governor slept on his job! It is a clear dereliction of duty on the part of Dr Addison and officials of the central bank. He participated in supporting Construction Bank to collect deposits illegally.

“Dr Addison failed to conduct due diligence but we saw him take pictures with officials of Construction Bank when it was officially opened.  And he must be applauded for that? What is happening in Ghana?” Adom-Otchere queried.

He further argues that the BoG violated Section 16 of the Banking Act by not writing to Construction Bank and Beige Bank upon noticing that the banks obtained their final licenses by false representation.

Adom-Otchere added: “The Act passed by Parliament clearly states that if the BoG wants to revoke the license of financial institutions, it is mandated to offer prior notice of at least 30 days before closure – but the BoG failed to do so in this regard and they want us to clap for them?

However, the 2nd Deputy Governor of BoG, Dr Elsie Awadzie, who called-in to contribute to the programme flatly denied Adom-Otchere’s assertions.

She argued that Act 123 of the Banking Act gives the central bank the power to, without prior notice, revoke licenses when it is found that a bank is insolvent.

Dr Awadzie says the BoG can’t be blamed for the inefficiencies of banks in the country, even though it is the regulator.

‘The fact that we could not identify that these banks acquired their licenses by false pretense does not mean we shouldn’t take action against such institutions when they are found out,” she added.

Asked whether there is a blue print in strengthening financial institutions going forward, Dr Awadzie responded in the affirmative.

“Yes, we have a clear blue print in place, these revocations are not adhoc measures at all. There are plans in place to stall a recurrence,” she said.


This week the country’s banking took another turbulent turn as five banks folded up and metamorphised into one bank – the Consolidated Bank Ghana Limited.

Sovereign Bank, Construction Bank, Beige Bank, unibank and Royal Bank all went under for various reasons, the Central Bank explained.

Three of the banks, the Governor of the Bank of Ghana (BoG) said used false pretense to obtain their banking licenses while two others were insolvent.

On August 14, 2017, Capital Bank and UT Bank also suffered similar fate and BoG did not hesitate to close them down. GCB Bank inherited all the two banks’ assets and liabilities.


Source: asempanews

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