Bank crisis: Over 2000 security men of 5 dead banks sacked

Bank crisis: Over 2000 security men of 5 dead banks sacked

- Consolidated Bank Ghana has laid off 2000 security guards in its restructuring program

- Reports show the bank has cancelled the contract with ACS Security Services for Vizico Security Company Limited

- The new receiver of all five collapsed banks has so far sacked 1700 workers

Close to 2000 security personnel of all recently collapsed local banks have lost their jobs. This follows the restructuring program by the new receiver - Consolidated bank of Ghana.

This follows a report from MyNewsGH.com which show that these officers under ACS Security Services Limited were sacked last Friday, August 31, 2018, after managers of Consolidated Bank Ghana (CBG) revoked the contract of the security company.

"In the case of the defunct Beige Bank, ACS Security Services Limited deployed 4 security guards to each of the over 90 branches with two operating in the day and the others for night and swap simultaneously," the portal further reported.

READ ALSO: Massive layoffs shake some major companies in Ghana

Meanwhile, the new bank has rather employed the services of Vizico Security Company Limited as the new service provider.

The trend of layoffs in recent times

The third quarter of 2018 has seen massive layoffs especially in the private sector. YEN.com.gh has gathered that major firms, especially media establishments, are either slashing down salaries of workers or laying them off completely.

BXC Company

Already, management of energy supply firm, BXC Company says at least 200 workers of the company will be sacked in the coming days.

The human resource manager of the company, Anastasia Ankrah, has explained that the massive layoffs is because of the distribution system lose reduction agreement by state-owned power distributor Electricity Company of Ghana (ECG) under the concession arrangement.

“So basically out of the 600 workers, 400 workers have been laid off. The 200 that are left are still being paid but by September they’ll also be laid off. The reason being that the 400, no job presently for them to do. The 200 that are even left we have very few jobs on hand now to do, and they’re being paid till the end of September when we will terminate their employment based on the letter we received from the lawyers of ECG,” she revealed.

Vodafone

The Herald newspaper has claimed that management of Vodafone is issuing out dismissal letters to workers as it allegedly prepares to sell the telecom to yet another firm.

The Herald Newspaper claims the huge number of layoff, became necessary because they want the company’s balance sheets to look good to the potential buyers. The number of people going home it is said, constitute 40 percent of Vodafone’s total number of employees in the country.

EIB network

YEN.com.gh has learned through close sources at EIB network that the salaries of workers and lead presenters have been slashed by half as the media company struggles to stay afloat its financial woes. Resignations have already started with the latest being the presenter for the morning show, Baisiwa Dowuona-Hammond.

TV Africa

All programs on TV Africa have been suspended effective Monday, September 3rd. This report, coming from Star FM, claims that the rebranded television station is struggling with its finances and also not able to pay salaries of workers. The owner of the business has told senior management members that he is unable to pay workers going forward.

This development has happened just two years ago after a private financial holding company, the Ideal Groupe, acquired a majority share in the TV station after 13 years of operation under the management of Kwaw Ansah.

GN Media

YEN.com.gh has also learned that Dr. Papa Kwesi Nduom’s GN media a subsidiary of his Groupe Nduom, has laid off about 30 workers. A letter signed by the head of recruitment and selection at the GN media subsidiary thanked workers for their contribution to the company and also further offered them their one month salary in advance.

READ ALSO: NDC Organizer dead as petrol explodes at home

Also, some persons who have been on their mandatory annual leave have been recalled and also issued with dismissals that have rocked the media company of the founding father of Progressive People’s Party (PPP).

The banking crisis and trickle-down effects

Some of the critical challenges facing the banking industry in Ghana include the failure of some banks to capitalise adequately, high exposure to government and quasi government institutions such as the oil sector debts, aggressive growth and weak controls.

Nevertheless, the banking industry in Ghana remains relatively solid and robust. As at the end of June 2017, the banking sector comprised of thirty-six (36) banks. Out of this number, nineteen (19) are domestically-controlled and the remaining seventeen (17) foreign-controlled.

Total assets and deposits of the sector stood at GHS 86.72 billion and GHS 54.48 billion respectively as at the end of June 2017.

So far, the recapitalisation deadline of December 31, 2018 has resulted in the collapse of some eight locally-controlled banks - a development which has crippled into massive job losses.

The trickle down effect of these massive layoffs have been the strict management decision by most banks now to reduce the rate at which they lend to businesses for fear of bad loans - a move which has subsequently affected local businesses that need credit facilities to stay afloat.

Ghana News Today: About Ghana's Banks And Mahama's Presidential Ambition | #Yencomgh

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Source: Yen.com.gh

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