Member of Parliament for Bolgatanga Central constituency in the Upper East Region, Isaac Adongo says the Governor of the Bank of Ghana, Dr. Ernest Addison must resign.
To him, Dr Addison supervised the recent collapse of indigenous banks in the country.
Speaking on Okay FM's 'Ade Akye Abia' programme, he accused the Governor of the Central Bank of aiding some Directors of the defunct banks to misappropriate tax payers money.
The Bank of Ghana last week merged five banks into the Consolidated Bank of Ghana Limited.
The affected financial institutions are; Beige, Sovereign, Construction, UniBank and Royal Banks.
It follows the insolvency of the five banks after investigations by Bank of Ghana (BoG).
"Government has also issued a bond totalling GHc5.6 billion to cater for bad assets of the five banks," Dr Addison said.
Explaining, the Governor said Unibank and Royal Banks were under capitalised and that those banks were beyond rehabilitation. On Royal Bank, he said non performing loans were high, whiles Sovereign Bank obtained its license by false pretences through the use of suspicious and non-existent capital.
According to an investigative report, the management of Capital Bank, with the approval of the Board Chair, diverted some of the Bank of Ghana (BoG) GHc 610 million liquidity support for other uses.
Some of that money was presented as capital to set up another collapsed bank, Sovereign Bank.
Among the flagged transactions were GHc 27.5 million used for business promotion and handled by a board member; transfers to IFS amounting to GHc 23.9 million, transfers to Nordea Capital amounting to GHc 65 million, and transfers to Alltime Capital amounting to GHc 130 million.
The GCB in 2017, took over the two banks under a purchase agreement approved by the Bank of Ghana.
GCB Bank has since absorbed about four hundred workers
But, Hon. Adongo believes Mr. Ernest Addison has shown gross incompetence, thus must resign.
"Collapsing indigenous banks does not make sense. It is just a lazy approach to put banks on their toes. What were they doing when these banks started to experience financial distress?....They have oversight responsibility of monitoring and supervising these banks," he said.
However General Secretary of the ruling New Patriotic Party (NPP), John Boadu says Mr. Addison should be patted on the back for sanitizing the banking industry.
Speaking on the same platform, he explained that though the BoG was not effective in dispensing their duties, Mr. Addison cannot be blamed.
"....it was a painful but necessary decision for the government to take since monies of customers of these banks needed to be protected," he added.
Source: Isaac Kwame Owusu/Peacefmonline.com/[email protected]
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SOMETIMES IT BECOMES SO TERRIFYING HOW THESE PEOPLE ENDED UP IN PARLIAMENT. HOW WERE THEY ASSESSED AND BY WHAT CRITERIA? ABA!! AND HE SITS IN PARLIAMENT MAKING LAWS FOR ME AND YOU TO OBEY. GOD HELP OUR MOTHERLAND. THE MAN IS WORSE THAN THE WORD MORON. THE SAD THING IS THAT IN HIS LITTLE MIND, HE COUNTS HIMSELF AMONG SENSIBLE BEINGS. WELL AS THEY SAY " IN THE LIND OF THE BLIND, THE ONE EYED MAN IS THE HERO". I BETTER END ELSE I WILL WRITE SOMETHING I MAY REGRET LATER.
Sometimes i wish to meet this man face to face and ask him some intelligent questions. Did these banks had their problems within one and a half years down the lane?
This Adongo guy is a joke...... it was NDC that caused the collapse of those banks. Did you pay your outstanding loan to Ndoum's bank? Ask Ibrahim Mahama to pay his outstanding loan.....
THEN MAHAMA SHOULD DIE.KWASIAAAA MAN.
Masa get away with your ***barred word***. This rot was happening during your time but never had the balls to act. You are now making noise. The governor is the man of the moment.