Communications Director of the opposition National Democratic Congress (NDC), Solomon Nkansah has chided government for the collapse of Unibank.

According to him, the failure of government to pay contractors who owe the bank culminated in the rippling effect that led to the collapse of the once biggest indigenous bank in the country.

Mr. Nkansah pointed out that the cancellation and truncation of the payment of salaries of government workers through Unibank was one cardinal factors that militated against the fortunes of the bank, leading to its eventual collapse and takeover.

He is of the view that the move is a deliberate attempt by government aimed at weakening the financial base of businesses and institutions affiliated to the opposition National Democratic Congress.





Mr. Nkansah who was speaking on Accra based Agoo television and monitored by MyNewsGh.com cautioned that if care is not taken, the country risk killing local businesses to the advantage of foreign ones.

Background

The Bank of Ghana (BoG) this week merged five banks into a Consolidated Bank of Ghana Limited.

The banks are BEIGE, Sovereign, Construction, UniBank and Royal Bank.

It follows the insolvency of the five banks after investigations by Bank of Ghana (BoG).

Consolidated Bank Ghana Limited is expected to help the government in economic development.

The government has also issued a bond totaling GHc5.6 billion to cater for bad assets of the four banks, Dr Addison said.

Explaining, the Governor said Unibank and Royal Bank were under capitalised and that those banks were beyond rehabilitation.

On Royal Bank, he said non-performing loans were high whilst Sovereign Bank obtained its license by false pretences through the use of suspicious and non-existent capital.

Dr Addison said the consolidated banks will be headed by Mr. Nii Amanor Dodoo of KPMG as the Receiver for the five banks.