Business & Finance

OSP Probes 2017-2019 Banking Crisis

The Office of the Special Prosecutor (OSP) has prompted an investigation into the collapse of some banks from 2017 to 2019 in the country, with insolvency being cited as the cause by the Bank of Ghana.

From 2017 to 2019, seven indigenous banks were collapsed by the BoG, what the government called the Financial Sector Cleanup exercise. The banks had their licences revoked with five of the banks amalgamated into the Consolidated Bank Ghana.

UT Bank Limited and Capital Bank Limited (taken over by BoG in 2017), Unibank Ghana Limited, The Royal Bank Limited, Beige Bank LTD, Sovereign Bank Limited, Construction Bank Limited, UT Bank Limited, and Capital Bank Limited (taken over in 2018).

Poor corporate governance was cited as the cause of the state of the banks.

Additionally, the Bank of Ghana revoked the licences of 347 microfinance companies and that of 23 savings and loans and finance house companies in 2019, citing insolvency, mismanagement, and fraud in some cases, Ghanaweb reports.

According to the OSP, the investigations target alleged corruption and corruption-related offenses perpetrated by officials of the Bank of Ghana, banks, specialized deposit-taking institutions, and financial holding companies.

The OSP has therefore extended an invitation to members of the general public with any knowledge on the commission of corruption and corruption-related offences on the crisis to complain with the OSP.

The OSP has guaranteed the confidentiality of informants, whistleblowers, and witnesses.

Source: Fuseini

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