Tension grips UT, Capital bank workers
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Aug 14, 2017

There is uneasiness among the workers of UT Bank Limited and Capital Bank Limited over the revocation of the banking licenses by the Bank of Ghana.

They are found to be deeply insolvent, meaning that their liabilities outweigh assets.

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The workers of the two banks are uncertain about their fate as the central has mandated the Ghana Commercial Bank (GCB) to take over their operations.

The managers of the two banks in principle cannot hold  out their various capacities because their banks are now non-existent following the revocation but the workers would remain at post pending  further arrangements by the GCB.

Although Mr Bernard Otabil, Director of Communications at BoG assures the workers that they “would not be affected for now” the workers remain worried.

A visit by ADR Daily to some of the branches of the two banks discovered an uneasy calm among the workers.

Personnel from GCB had also taken over the management of some of the banking halls, while some of the branches have been rebranded with GCB labels.

Although the original staff of the various banking halls  were found at post, those issuing directives have changed.

A statement issued this morning by the central bank to announce the revocation of the licences, said “The Bank of Ghana has approved a purchase and assumption transaction with GCB Bank Ltd that transfers all deposits and selected assets of UT Bank Ltd and Capital Bank Ltd. The Bank of Ghana has revoked the licenses of UT Bank Ltd and Capital Bank Ltd.”

The central bank explained the action has become necessary due to the severe impairment of the capital of the aforementioned banks.

“The remaining assets and liabilities will be realised and settled respectively through a receivership process to be undertaken by Messrs Vish Ashiagbor and Eric Nana Nipah of PricewaterhouseCoopers (PwC).”

“Meanwhile, the main offices and branches of UT Bank and Capital Bank will be under the control of GCB Bank and will be opened at 1pm today (August 14, 2017) for normal business transactions.

“Customers of UT Bank and Capital Banks are now customers of GCB Bank. All deposit customers and ATMs will continue to operate as normal as GCB Bank branches and ATMs.

All staff of the two banks, the central bank stated “will in the interim become staff of GCB Bank and GCB will negotiate the terms of their contract,” the statement said.

The BoG assured the general public that customers could continue normal banking business at all UT Bank and Capital Bank facilities which are now branches of GCB Bank.

“The approval by the Bank of Ghana of this transaction is to strengthen Ghana’s banking sector, ensure financial stability and protect customer’s deposits. The Bank of Ghana reassures customers of UT Bank and Capital Bank that their money is safe and they can continue to do business at their respective branches which are now the branches of GCB Bank”

The central bank has in recent times been criticized by the general public for not playing its supervisory role well leading to various troubled schemes such as ‘DKM’, ‘God is Love’ and through which many investors lost their deposits.

By Francis Tandoh & Nii Adotey/adrdaily.com

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