EOCO can investigate CEOs of failed banks not us - BoG

EOCO can investigate CEOs of failed banks not us - BoG

- The Central Bank has declared that it has no power to prosecute the CEOs of the 5 collapsed banks

- It explained that EOCO has the powers to prosecute the CEOs

- The Central Bank announced the consolidation of 5 local banks on August 1, 2018

The Head of the Research Department of the Bank of Ghana (BoG), Dr Benjamin Amoah, has revealed that the Central Bank has no right to prosecute the heads of the collapsed banks.

According to him, it is the Economic and Organized Crimes Office (EOCO) that has the prosecutorial powers to enforce such an action.

The Central Bank, on Wednesday, 1 August 2018, announced the merger of five struggling local banks into a Consolidated Bank, since they cannot meet the minimum capital requirement of GHS400 million.

CEOs of banks

Credit: Ghanaweb

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The newly-established Consolidated Bank is fully owned by the Government of Ghana, with a start-up capital of GHS450 million.

The banks that have been merged are The Royal Bank, The BIEGE Bank, Sovereign Bank, Construction Bank and uniBank.

According to the BoG, The BEIGE, Sovereign and the Construction banks obtained their banking licences under false pretences through the use of suspicious and non-existent capital, whereas the Royal Bank had non-performing loans which constitute 78.9 per cent and uniBank which also had a capital of GHS7.4 billion compared to the regulatory minimum of GHS400 million.

On the issue of whether employees of the affected banks will lose their jobs, he explained that such employees should report to their places of work, as there are no such plans.

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