The newly-licensed Consolidated Bank Ghana Limited (CBG) has announced that it has established an integration roadmap outlining how hundreds of its employees are to be distributed among its branches throughout the country.

“Whilst this may involve some reduction in headcount, management is taking steps to ensure that this does not impose undue hardship on its staff,” reads a statement from the bank’s CEO, Daniel Wilson Addo.

CBG plans to coordinate career training programs for all staff who will be laid off, the statement continued. The bank will also provide materials for former employees to transition to other economic models, which they can use to provide outsourced services where needed.

“CBG is an indigenous bank with a strong balance sheet, well-positioned to protect the best interests of our depositors and staff. We look forward to an enduring partnership with all our stakeholders and to building an entity that will transcend this generation.”

Background

On August 2, five financial institutions (The Construction Bank, The Royal Bank, uniBank, BEIGE Bank and Sovereign Bank) merged to form The Consolidated Bank of Ghana Limited (CBG). The Bank of Ghana’s decision to combine the banks was based on investigations finding several malpractices including misapplication of funds.

Second Deputy Governor at Bank of Ghana (BoG), Elsie Addo Awadzi, told Joy FM at the time that banks who do not abide by the rules of the central bank would be penalized to the fullest extent of law.

Read more: BoG creates Consolidated Bank to take over 5 struggling banks

“What happened bears testimony to the fact that this is a new day and we are building a new culture of integrity and trust within the banking sector,” Awadzi avowed.

She explained that in March 2018, an administrator was sent to investigate wrongdoings at one of the collapsed banks, uniBank.

Five Managing Directors of the dissolved banks: L-R: Stephen Kpordzih (Construction Bank); Osei Asafo – Adjei (Royal Bank); Dr Duffuor II (uniBank); Johan Rheeder (Sovereign Bank); Mike Nyinaku (Beige Bank)

Upon investigation, the central bank found that the bank was flubbing bank sheet numbers. Scores of financial transactions were improperly recorded. A paper trail led BoG to find transactions were not in the benefit of depositors.

“As a result, to protect the profits of the banks, we took a big decision to revoke their licenses.”

Following the banks’ collapse, the government of Ghana has issued a ¢5.7 billion bond to support CBG.

In a statement, the central bank detailed that all funds at the banks have been transferred to CBG. Customers must now conduct all businesses through their respective banks that have now become branches of CBG. All Board of Directors and shareholders of the former banks have been terminated.

“We had suspicions that the returns from uniBank were not correct,” adding that the bank failed to report returns it was required to complete monthly.

“Ghana needs a strong and stable banking sector to drive the process of economic transformation,” the statement read. “A weak banking sector means that access to credit will be limited while lending rates will continue to be high.”

BoG further maintained that customers’ funds are safe. The regulator stated that it expects “the new bank will be better governed and managed to become a strong indigenous bank to support Ghana’s economic transformation.”

Awadzi said that in the interest of the depositors, the decision to merge the banks will be beneficial to the future of Ghana’s financial sector.

“We take supervision seriously and the BoG is taking great effort to ensure that supervision is enforced,” she elaborated. “Not complying with the law will not be tolerated.”

 

 

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