At least 15 staff of the Bank of Ghana are before a Disciplinary Committee over misconduct leading to the collapse of over seven banks in Ghana.

The newly formed Ethics and Investigative Office of the Central Bank referred the 15 officials to the committee after investigating their alleged role in licensing and supervising the defunct banks.

The Office was set up in August last year to investigate allegations of misconduct by staff including any role in respect of the collapse of the defunct banks.

Top BoG officials have revealed “staff found culpable will be dealt with” in accordance with the Human Resource policies, and referred to law enforcement agencies.

The Finance Minister, Ken Ofori Atta, revealed in the 2019 budget statement that the collapse of seven banks – unibank, Beige Bank, Sovereign Bank, Construction Bank, Royal Bank, Capital Bank, UT Bank – has cost the government an amount of GH¢9.9 billion.

According to him, through government’s intervention in August this year, deposits of some GH¢11.0 billion have been saved as well as some 2,661 jobs in addition to several hundred saved in 2017 from the insolvent 2 banks that were closed in 2017.

“Mr. Speaker, since the assumption of office by the current administration of the Bank of Ghana, bold measures have been taken to restore the health and resilience of the banking sector and to clamp down on unlicensed deposit-taking financial houses. In addition to the two insolvent banks that were closed last year by the Bank of Ghana, five more were closed in August this year for insolvency and other infractions of the law.

“Rescuing the situation regarding these seven banks has, so far, cost some GH¢9.9 billion in monies that Government had not budgeted for and could have surely been put in good use to fix our numerous infrastructural needs, such as housing, roads, bridges, etc.

“The Government has continued to provide assurances to depositors and customers of licensed banks and specialised deposit-taking institutions, through demonstrable actions, that their deposits are safe. Indeed, following the creation of the Consolidated Bank Ghana Limited (a wholly owned Government of Ghana and licensed by the Bank of Ghana as a universal bank), the government capitalised it with GH¢450 million. In addition, Government had to issue a bond with a face value of

“GH¢7.6 billion to cover the gap, between the deposit liabilities and the remaining good assets of the failed banks. This singular action of government has reposed confidence in the banking system because it will ensure that no deposit will be lost, and customers will continue to access their deposits without difficulty.

“Through Government’s intervention in August this year, deposits of some GH¢11.0 billion have been saved as well as some 2,661 jobs in addition to several hundred saved in 2017 from the insolvent 2 banks that were closed in 2017. The Government’s action has also created a strong indigenous Ghanaian bank in place of the five failed banks.”