UT bank, Capital Bank’s collapse: Minority calls for bipartisan probe

The Minority in Parliament has called for a bipartisan probe into the circumstances that led to the fall of UT Bank and Capital Bank, leading to their takeover by GCB Bank.

The Bank of Ghana confirmed the takeover of the two banks by GCB Bank in a statement on Monday morning, announcing that it had “approved a Purchase and Assumption transaction with GCB Bank Ltd that transfers all deposits and selected assets of UT Bank Ltd and Capital Bank Ltd to GCB Bank Ltd.”

The Governor of the BoG added at a press conference later on Monday that it will punish any individual or persons whose actions may have led to the collapse of the banks.

“The last phase of the BoG's action would involve a thorough investigation of operations of UT Bank and Capital Bank and appropriate action will be taken against shareholders, Directors, and key a Management personnel who are found to be culpable,” Ernest Addison stated.

However, at a press conference on Tuesday, the Minority called for the investigations to be undertaken by a bipartisan body.

Addressing the conference, the Minority’s spokesperson on Finance, Cassiel Ato Forson, said that a bipartisan approach was necessary to restore the confidence of the public in the banking sector.

According to him, investigating and sanctioning those involved in the collapse of the banks would prevent banks from taking the security of their clients’ assets for granted in future.

“We are urging the government to as a matter of urgency institute a bipartisan probe into what occasioned the rise and fall of these two banks. We think this situation needs to be investigated so that if it's true that actions or inactions of the managers of these banks resulted in the banks collapsing, I believe the state would have to take action,” Ato Forson said.

“We call for a bipartisan probe and we think it should be done and be done immediately so that the people of this country will have confidence in the banking sector and also to serve as a deterrent going forward; so that you can't just open a bank, play with depositors' money and think you can go scot free. We believe some actions need to be taken.”

The remnants of the UT Bank logo on the ground after the GBC rebranding

‘Assure depositors of safe assets’

The Bank of Ghana and GCB Bank have assured customers of the two banks that their savings and investments remain intact amid fears that their collapse could affect them.

A number of people rushed to various branches of the two banks after news of the collapse broke with some threatening to close their accounts entirely.

However, the BoG has insisted that no panic withdrawals have been made by the customers of the banks.

Despite the BoG’s assurances, Ato Forson, who is also the Ranking Member of Parliament’s Finance Committee stated that they would invite the Minister of Finance and the Governor of the Bank of Ghana to make those guarantees before the House.

“We the members of the Minority, as a matter of urgency will be requesting through the Speaker that the Minister of Finance and the Governor of the Bank of Ghana be invited to brief Parliament about this development and to give assurances that depositors will suffer no losses,” he said.

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By: Edwin Kwakofi/citifmonline.com/Ghana