Bank of Ghana approves payment of severance packages for former Capital Bank workers

Bank of Ghana approves payment of severance packages for former Capital Bank workers

- The Central Bank has approved the payment of severance packages for former workers of the defunct Capital Bank

- This comes months after the former employees began agitating for their severance packages after they lost their jobs

- GCB Bank took over the operations of Capital Bank in August 2017

Information available to shows that the Bank of Ghana (BoG) has given the greenlight for the payment of severance packages to former employees of the defunct Capital Bank.

This comes almost two years after the Capital Bank was absorbed by GCB Bank in August 2017, as a result of challenges with solvency.

According to the receivers, Vish Ashiagbor and Eric Nana Nipah of PricewaterhouseCoopers, “BoG has instructed that part of their interim dividends distributable by the joint receivers to them (BoG) as 1st priority creditor, be used to fully fund the severance packages of the ex- staff of Capital Bank.”

The front view of a bank
Source: Supplied
Source: UGC

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The former Capital Bank employees, have for several months, been agitating for their end-of-service-benefits, but to no avail. reports that, according to the joint receivers of Capital Bank, order of payments as per the law, ought to have been to Bank of Ghana, statutory agencies, compensation to employees and other unsecured creditors.

The BoG however directed that the money to be used to service the severance package of the ex-workers for their “loss of employment and attendant hardships.”

Details of when and how the severance package will be paid is expected to be announced this week to the workers through their union, the Union of Commerce, Industry and Finance (UNICOF). understands that the payment of the severance package will be done per the terms negotiated by UNICOF on behalf of the workers.

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