Adongo jabs BoG fort unfair collapse of Heritage Bank

Adongo jabs BoG fort unfair collapse of Heritage Bank

- MP, Isaac Adongo alleges a certain local bank in Ghana is owned by one man who has 99% shares

- The NDC MP accused the central bank of bias and unfair treatment

The NDC Member of Parliament for Bolgatanga Central, Isaac Adongo, is alleging the Bank of Ghana is been unfair in collapse the Heritage Bank on grounds that its significant shareholder, Mr Seidu Agongo owned 70% of the bank when another local bank is in operation despite one shareholder owning 99% of it.

The MP made the revelation at a lecture on the Ghanaian economy in Accra on Thursday, 4 April 2019.

He opined that even though the Heritage Bank was partly collapsed because Seidu Agongo owned 70% of the bank, the unnamed bank, which Adongo claims is almost wholly-owned by one individual, is still in existence.

Adongo jabs BoG fort unfair collapse of Heritage Bank
Adongo jabs BoG fort unfair collapse of Heritage Bank. Source: B&FT
Source: UGC

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Mr Adongo, thus, questioned the motive behind the withdrawal of the licence of Heritage Bank on January 4, 2019 and the Bank of Ghana's reforms which saw eight other local banks lose their licences.

The governor of the BoG, Dr Ernest Addison, announcing the revocation of HBL’s licence, also said Mr Agongo, among other things, used proceeds realised from alleged fraudulent contracts he executed for the Ghana Cocoa Board (COCOBOD), for which he and former COCOBOD CEO, Dr Stephen Opuni are being tried, to set up the bank.

He told journalists – when asked if he did not deem the action as premature, since the COCOBOD case was still in court – that: “The issue of Heritage Bank, I wanted to get into the law with you, I don’t know if I should, but we don’t need the court’s decision to take the decisions that we have taken. We have to be sure of the sources of capital to license a bank; if we have any doubt, if we feel that it’s suspicious, just on the basis of that we find that that is not acceptable as capital. We don’t need the court to decide for us whether anybody is ‘fit and proper’, just being involved in a case that involves a criminal procedure makes you not fit and proper”.

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HBL has been added to Consolidated Bank Ghana Limited (CBG), which was first formed when the central bank collapsed some five local banks in August 2018.

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