A financial analyst, Michael Dawson, has said that the Bank of Ghana has done its part as far as prosecutions in the banking sector clean-up is concerned.
According to him, the banking sector regulator cannot absorb the blame for the delay in prosecutions as it does not serve as an investigative body that prosecutes wrongdoing.
“The BoG for instance does not have the powers to try cases of the directors who may have played roles that led to the collapse of the banks. While most of these cases are currently in court, it is now their responsibility to expedite the processes to ensure that those found culpable are brought to book.”
“Sometime back, Governor of the Bank of Ghana, Dr. Ernest Addison, urged the judiciary to allocate special courts to specifically handle cases related to the recent banking crisis. The Governor has also acknowledged the crucial role of the judiciary in efficiently adjudicating financial sector cases."
“l will continue to say that the Bank of Ghana should be commended for their efforts in sanisiting the banking sector. It was a bold decision by Governor Addison-led management while other past Governors were aware of the problem, but failed to conduct reforms in the sector.”
Mr. Dawson made these comments following a statement made by the former General Secretary of the NPP, Mr. Kwabena Agyei Agyepong indicating that the central bank had failed in its role in prosecuting persons involved in the banking sector crisis.
The financial analyst however added that “Some of the banks had also breached several banking regulations leaving the financial system at the time, on the brink of a total collapse.”
Meanwhile, at a recent event held in Accra, the central bank contributed funds to the Economic and Organised Crime Office (EOCO), to help investigate cases related to the financial sector clean-up exercise.
In 2017, the BoG undertook a clean-up exercise that saw the revocation of operating licenses of some eight banks, 23 savings and loans companies and more than 400 specialised deposit-taking institutions (SDIs).
According to the Receiver for some of the financial institutions, preliminary investigations found that most directors of the defunct financial institutions failed in their fiduciary responsibilities to customers and other stakeholders.
The measures taken by the BoG safeguarded the investments of 4.6 million depositors.
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