Minority Demands Answers As Gov't Moves To Blow GHC2bn On Collapsed UT, Capital Banks

Government is finalising plans to return to the financial market to raise GH ¢2billion to clear debts owed by two collapsed banks, UT and Capital banks, the Minority in Parliament has alleged.

The opposition lawmakers have served notice they will resist that decision unless the reasons behind the collapse of the two indigenous banks are made public.

The collapse of UT and Capital banks in August last year shook the financial market and triggered calls for the Central Bank to take its regulatory role seriously.

Related Article: GCB bank rebrands collapsed UT, Capital Banks

Casiel Ato Forson
The two banks were acquired by another indigenous bank, GCB after they were declared financially distressed to exist as autonomous institutions.

Nearly a year on, the reasons for their collapse have not been made public, a development the Minority has described as worrying.

Former Deputy Finance Minister, Casiel Ato Forson wants the government to be open to the taxpayer regarding its decision to take over the liabilities of the two banks.

Related Article: No change in ownership - adb debunks uniBank takeover claims

Dr Mark Assibey-Yeboah
"If a bank collapses, should the taxpayer pay [for it]?" the Minority Spokesperson on Finance said on Joy FM's Top Story Thursday.

He said the Minority will be pursuing the matter to ensure that any decision to clear the debts of UT and Capital bank will receive prior approval of Parliament.

But the Chairman of Parliament's Finance Committee said he is unaware of the government's intention to use taxpayers' money to pay the debts.

Although he acknowledged the two banks left huge debts, Dr Mark Assibey-Yeboah ruled out plans to issue a bond to clear that.

Story by Ghana | Myjoyonline.com |