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13.12.2019 Business & Finance

Banks Clean-up: 10,000 People Would Have Lost Their Jobs

The Central Bank has led a clean-up of the sector since 2017The Central Bank has led a clean-up of the sector since 2017
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President Akufo-Addo says more than 3,000 persons would have lost their jobs if not for the reforms in the financial sector.

He indicated that, “10,000 would have gone out of the window” had they not intervened.

Addressing journalists Friday, at the Jubilee House, Akufo-Addo reiterated his government’s chorus that lack of scrutiny in the erstwhile John Mahama administration, led to the challenges with the sector.

He said poor or no regulation by the central bank then, led to violations of the law by bank directors.

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Eight banks collapsed since the clean-up began in 2017.

UT Bank and Capital Bank had their licenses revoked and they were taken over by GCB Bank.

Later, five banks lost their licenses and were merged to form the Consolidated Bank Ghana Limited and later Heritage Bank which went down January 2019 was acquired by the CBG.

The Bank of Ghana said the licenses were revoked due to liquidity challenges facing the bank.

Some of the banks also acquired their licenses under false pretenses; by presenting non-existent capital.

Since then, 23 Savings and Loans companies have also gone down.

Job losses

Speaking in September 2018, Deputy Employment Minister, Bright Wereko-Brobbey, said some 2000 persons would lose their jobs as a result of the clean-up.

He said the CBG could not absorb all the employees from the defunct banks.

Confirming the impact Friday, President Akufo-Addo put the “net figure around 3000.”

Former employees

A deputy manager in the now-defunct Capital Bank Raymond Dankwa now grills pork for survival.

When JoyNews spoke to him last year, Dankwa said he makes a living by grilling meat at events.

He told Joy News’ Justice Baidoo that he also started the ‘RaD Kitchen’ where he supplies food to the staff of financial and other institutions.

Edem Adimado, husband and father of two, also told JoyNews his reputation in the financial industry has been damaged due to his affiliation with Capital Bank.

He now drives an Uber to make ends meet.