BoG Solely Responsible For Banking Crisis – Jinapor

• Posted on September 5, 2018
• by Ellsamwise King
• Comment

Former Deputy Power Minister and a Member of the Finance Committee John Jinapor says the Bank of Ghana is solely responsible for the crisis in the banking sector leading to the collapse of some seven indigenous banks.

His comments followed the appearance of the governor of the central bank, Dr Ernest Addison and officials of the Finance Ministry before the Finance Committee of Parliament to answer questions on the circumstances leading to the collapse of the  banks.

The collapsed banks are; Capital, UT, Sovereign, Royal, Beige, Construction and uniBank.

Five of the aforementioned banks – Sovereign, Royal, Beige, Construction and uniBank have since been merged into one entity under the name Consolidated Bank of Ghana.

Speaking to Starr News’ Parliamentary Correspondent Ibrahim Alhasssan at the sidelines of the Finance Committee’s enquiry into the banking crisis, Jinapor said per the answers given by the governor of the Central Bank to questions on the circumstances leading to the banking crisis “clearly the fault ought to be put at the doorsteps of the Bank of Ghana and not any other person.”

“Any other thing that’s followed up for me is consequential on the fact that the Bank of Ghana failed to do due diligence to enforce the law. There was so much laxity and I think if there is anybody to be held responsible it ought to be the Bank of Ghana themselves, because clearly at the meeting, it is obvious that they failed to implement the law to the letter. There was some level of complexity. There was some level of laxity,” he added.

Fate Of CBG Workers Unknown

The former Deputy Power Minister noted worryingly that the Finance Committee is in the dark regarding the faith of workers of Consolidated Bank of Ghana (CBG).

“As we speak we don’t…know the fate of the workers whether they are going to be guaranteed employment for one month, three months while they search for employment,” he stated.

According to Jinapor, the Committee’s attempt to get the Central Bank’s governor to make a definite statement on the employment status of the CBG staff was unsuccessful.

“I want to make it clear that I’m disappointed in the Bank of Ghana,” he stated.

Re-apply for your jobs – CBG to staff

Meanwhile, the staff of CBG have been asked to re-apply for their jobs in a new memo.

The recruitment exercise has since taken place, starting on 29 August 2018 to Monday, September 3.

The memo by the Managing Director of the CBG, Daniel Addo, said a link to the recruitment portal would be sent to the staff via email and those interested in having a future with CBG are required to submit their details and CV through the portal.