Business News of Tuesday, 6 November 2007

Source: GNA

Customers of a rural bank appeals to BoG for retrieval of deposits

Kumasi, Nov.6, GNA- Customers of the Atobiase Rural Bank in the Ashanti Region have called on the Bank of Ghana (BOG) to help them retrieve their money, which had locked up with the bank for over four months now.

The customers some of whom have over GH=A220,000 deposit accounts, but could not withdraw due to liquidity risk do not understand why the BOG, which has a specialized supervising and monitoring team with auditors attached should allow a bank to go bankrupt.

Two victims, Mr Awudu Issah and Mohammed Abass who spoke to the Ghana News Agency on the issue in Kumasi on Tuesday, said many businessmen and women are now transacting business with the rural banks because of the involvement of BOG in the supervision and monitoring roles they were playing with the rural banks.

"If something is not done immediately about this development, the public spirit with their participation with rural banking would not only be dampened but would also erode the confidence and trust they have in BOG and the rural banks", they said.

Some of the affected customers who were interviewed indicated that they went to the Kumasi branch of the Association of Rural Bank (ARB) Apex Bank and the information given them was that they would get their money but it would take some time. "Atobiase Rural Bank has no money with us. We are trying to assist them with the problem that has arisen", an official who wanted to remain anonymous said. When the GNA visited the affected branches especially, that of Akwatialine in Kumasi on Tuesday, many customers were seen grouped under trees waiting impatiently to hear a word from the officials but to no avail.

Customers who claimed to be salary workers and pensioners said they found it difficult to collect their pay. The salary workers, however, stressed that efforts were being made by their organizations to find a way out for them to collect their salaries with the other banks.