Directors of failed banks will be prosecuted - Akufo-Addo

Directors of failed banks will be prosecuted - Akufo-Addo

- President Akufo-Addo has given an assurance that everyone who played a role in the collapse of local banks will be dealt with according to the law

- He added that the collapse of the banks came at a cost of the taxpayer and the employees of the banks

President Akufo-Addo has disclosed that everyone found culpable in the collapse of banks in Ghana will face the full rigours of the law.

In an interaction with journalists on Wednesday, December 19, 2018, he added that “there is no doubt that the failure of the seven banks came at a cost to the Ghanaian taxpayer and staff of the affected banks.”

Former managing directors of the defunct banks and top directors, including Dr. Kwabena Duffuor II of uniBank, Johan Rheeder of Sovereign Bank, Mike Nyinaku of Beige Bank, Osei Asafo of Royal Bank and Pastor Mensa Otabil of the Capital Bank, among others, are all under investigations for the roles they played in the collapse of the banks.

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Some of the directors, including William Ato Essien of Capital Bank, have been accused of diverting funds from their banks and undertaking insider trading to deny the respective banks of the needed funds to operate.

In August, 2017, the Bank of Ghana (BoG) closed down two indigenous banks, namely UT Bank and Capital because they were said to be under capitalised and beyond rehabilitation.

BoG subsequently appointed the Ghana Commercial Bank (GCB) to take over the two banks, and in August 2018, five additional banks, namely Royal Bank, Sovereign Bank, Beige Bank, uniBank and Construction were merged into an entity known as the Consolidated Bank of Ghana Limited, due to capital inadequacy as reported by the Central Bank.

Some of the collapsed banks were said to have acquired their operating licences through fraudulent means.

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