Member of Parliament for Bolgatanga Central and Minority Spokesperson on Finance, Isaac Adongo, has said profligacy, and the ostentatious lifestyle of the management of UT and Capital banks, led to the collapse of these financial institutions.
According to him, the management of these banks spent huge sums of money on putting up ultra-modern edifices in prime areas across the country leading to the wearing of their financial muscles.
On Monday, the Bank of Ghana announced that GCB Bank has taken over UT Bank Ltd and Capital Bank Ltd as the two banks were struggling to operate financially.
A statement issued by the Central Bank said: “The Bank of Ghana has approved a Purchase and Assumption transaction with GCB Bank Limited that transfers all deposits and selected assets of UT Bank Ltd and Capital Bank Ltd to GCB Bank Ltd. The Bank of Ghana has revoked the licenses of UT Bank Ltd and Capital Bank Ltd. This action has become necessary due to severe impalement of their capital. The remaining assets and liabilities will be realised and settled respectively through a receivership process to be undertaken by Messers Vish Ashiagbor and Eric Nana Nipah of PricewaterhouseCoopers.
“The main offices and branches of UT Bank and Capital Bank will be under the control of GCB Bank, and will be opened at 1 PM today for normal business transactions.”
Speaking on this matter in an interview with Chief Jerry Forson, host of Ghana Yensom on Accra 100.5FM on Tuesday, Mr Adongo said: “Look at the ultra-modern buildings that were put up by these two banks. Where did they get the money from to put up these buildings?
“UT bank and Capital bank were reckless, the Bank of Ghana needed to regulate the moneys they were putting into physical infrastructure. You can’t come for my savings and use it to put up these ultra-modern buildings and expect to survive as a company.”
Source: Ghana/AccraFM.com
