Prime News Ghana

Special Prosecutor probes banking sector mess

By PrimeNewsGhana
Special Prosecutor opens probe banking sector mess
Special Prosecutor opens probe banking sector mess
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Special Prosecutor, Kissi Agyebeng, has started investigations into the banking and financial sector crisis.

The mess caused the collapse of some banks and financial institutions in the country, culminating in the loss of income, savings and jobs of hundreds of Ghanaians.

“The investigations target alleged corruption and corruption-related offences perpetrated by officials of the Bank of Ghana, banks, specialised deposit-taking institutions and financial holding companies,” the OSP said in a statement issued in Accra on Tuesday, January 25, 2022.

“The OSP invites members of the public who have knowledge of the commission of corruption or corruption-related offences to lodge complaints with the OSP against any official in this regard. The OSP assures the public that all necessary and reasonable steps shall be taken to protect the safety and welfare of all informers, whistleblowers and witnesses. Any official found culpable and complicit would be arrested and prosecuted,” the statement added.

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The crisis affected Ghana between August 2017 and January 2020.

The Bank of Ghana allowed several indigenous banks to be taken over by private companies between August 2017 and January 2019 after Nana Akufo-Addo was elected President in December 2016.

Most of the indigenous banks had been at the risk of defaulting on their loans.

 The central bank on Friday, 16th August 2019, revoked the licenses of 23 savings and loans companies.

This follows a similar action a year ago when the regulator in 2018 ordered a purchase and assumption agreement that saw GCB Bank subsumed UT and Capital Banks.

Five other banks were closed down completely in their stead, forming Consolidated Bank Ghana.