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Rainbow Radio - Items filtered by date: Wednesday, 01 August 2018
%PM, %01 %847 %2018 %19:%Aug

Nana Addo swears in new EC heads

President Nana Addo Dankwa Akufo-Addo has sworn-in the new Electoral Commissioner, Mrs Jean Adukwei Mensa and her two Deputies as well as the member of the commission, in the persons of Dr Eric Bossman, Mr Samuel Tettey and Mrs Adwoa Asuama Abrefa. President Akufo-Addo admonished the new EC bosses to be apolitical in the discharge of their duties. The four were nominated by the President and approved by the Council of State following the impeachment of Charlotte Osei and her two deputies, Georgina Opoku Amankwa and Amadu Sulley. The three were removed fr4om office after a judicial committee set up by the Chief Justice, Sophia Akuffo found them guilty of procurement breaches.
Published in General News
The President of the Republic, Nana Addo Dankwa Akufo-Addo, has revealed that the Public Procurement Authority, “simply reviewing contracts brought before it for approval under either sole sourcing or restrictive tendering, has, in the past 18 months, saved the country some GH¢1.6 billion.” Speaking at the 2018 Internal Audit Conference, on Wednesday, 1st August, 2018, on the theme, “Leadership and Good Corporate Governance; A key to Effective Public Financial Management”, President Akufo-Addo indicated that, in the whole of 2016, “the Authority made zero savings.” This, the President said, “is what can happen when our institutions work”, adding that “I know that there is no better way to retain the confidence of the people than to ensure that public institutions work.” As internal auditors, he noted that they constitute the first line of defense in the fight against corruption, explaining that if they did their work well, they provide an independent and objective assessment of an institution’s operations; specifically, the effectiveness of its internal control structure. “When people know that they cannot get away with spending 10 cedis of public money without accounting for it, they hesitate to take 100 or 1,000 or 10,000 cedis,” the President stressed. However, with the Auditor-General, year-in-year-out, uncovering cases of financial malfeasance in the public service, the President stated that “we cannot avoid the conclusion that the internal auditor must be either complicit or incompetent. We cannot afford to have internal auditors that would be complicit in the malfeasance they are expected to prevent, and, certainly, we do not need incompetent ones.” He continued, “From what is euphemistically termed petty corruption, to what must be called grand corruption, the truth is that corruption thrives when no one is checking.” President Akufo-Addo, thus, emphasised that the internal auditor is one of the primary weapons in the fight against corruption. “I came to reiterate that I need your help in the fight against corruption. I came to renew publicly the sacred vow that I took to protect the public purse. I came also to acknowledge that this is not a battle I can wage or win alone. There are many layers to the protection of the public purse, and internal auditors are its primary defenders,” he said. Whilst acknowledging the fundamental role that internal auditors play to prevent, detect and reduce corruption, leakages, and waste of public resources, he added that internal auditors help to ensure accurate and timely information, which helps to improve financial management systems in organizations. “Internal auditors lead in the safeguarding of resources and help to strengthen the control system, compliance with laws, policies and procedures in organizations… Even more important is their role in ensuring accountability, transparency and the quality of performance in the organization,” he said. Attempts to tarnish me with corruption won’t wash The President stated that, despite “stringent and desperate efforts being made by my political opponents to tarnish me and members of my family with corruption will simply not wash.” President Akufo-Addo reaffirmed that “I did not come into public life to make money out of public service, and members of my family know fully well that they have to behave, and are not involved in anything untoward. I am aware that you give a dog a bad name in order to hang it. But, this dog will not be hanged.” He, thus, assured that institutions, such as the Auditor-General, Internal Audit Agency, EOCO and other statutory institutions, will continue to be empowered to carry out their mandate so that relevant laws and policies are complied with. President Akufo-Addo, in concluding, assured Ghanaians that “Government is on the right path to secure what is good for the country, and will endeavour, with God’s Grace, to work hard to reach our goal. Let us all work hard, and we shall achieve the prosperous and happy Ghana we all envisage.”
Published in General News
The President of the Republic, Nana Addo Dankwa Akufo-Addo, says one of the most important, immediate challenges that will confront Universities across the country will be the dramatically increased population of students, who will be seeking admission in some two years, as a result of the Free Senior High School policy. Speaking at the investiture ceremony of Mrs Mary Chinery-Hesse as Chancellor of University of Ghana, on Wednesday, 1st August, 2018, President Akufo-Addo urged the new Chancellor and all heads of our tertiary institutions, to begin making adequate preparations towards the increased population. “The Free Senior High School policy will be a permanent feature of our educational architecture. We cannot be caught off guard, and, as the saying goes, ‘the best preparation for tomorrow is doing your best today’,” the President said. With Mrs Chinery-Hesse becoming the first female Chancellor of any public university in the country, the President stated that he is taking over as Chancellor from one of Ghana’s most illustrious sons, the former Secretary General of the United Nations, Mr. Kofi Annan, under whose stewardship the University has attained the rank of the best in West Africa. “I thank Mr. Kofi Annan, who served the two terms of his mandate, for his invaluable service to the nation. It is not every day that one picks up the mantle of leadership from such as Mr. Kofi Annan So, Madam Chancellor, I am sure that you know that you have your work cut out for you,” he said Nonetheless, the President was unequivocal that the University could not have picked a worthier successor to Mr. Kofi Annan than Mrs Chinery-Hesse. Her wealth of experience, Chief Director at the Ministry of Finance and Economic Planning, Under Secretary-General of the United Nations, Member of the Governing Council of the University, Advisor to the 2nd President of the 4th Republic, His Excellency John Agyekum Kufuor, the President said will ensure a seamless transition, and put her in good stead to help spur on the University onto even greater heights. “I commend the authorities of the University for the excellent choice of this distinguished person, one who is also, happily, a firm believer in academic freedom. As the first female Chancellor of any Ghanaian university, Mrs. Chinery-Hesse blazes, again, a trail for other women to follow, and, moreover, I am sure the University will definitely feel the added benefit of that special quality that a woman can bring to leadership,” he said. President Akufo-Addo assured of Government’s steadfast commitment and continued support to the University of Ghana, and, indeed, to all other universities in the country. “It is my expectation and hope that Legon will continue to produce graduates, who are moulded to take on the opportunities and possibilities for higher achievement, through innovation and creativity, in today’s science and technology-led, knowledge-driven global economy, and who will, thereby, help generate prosperity for the mass of our people in our time,” he said. Share with the youth of Ghana one fundamental belief that shapes everything he does, the President stated that “we have it in us to be the best generation, the generation that fulfils the dreams of the great patriots who brought our nation independence, the generation whose work will give full meaning to the words of our country’s motto, Freedom and Justice, the generation that will build a new Ghanaian civilisation the equal of any on the face of the planet. Let us be up and doing. Greatness beckons.”
Published in General News
The Bank of Ghana (BoG) on Wednesday announced that it has revoked the licenses of five banks and put them together as Consolidated Bank Ghana Limited. The Banks are uniBank Ghana Limited, The Royal Bank Limited, Beige Bank Limited, Sovereign Bank Limited, and Construction Bank Limited and has appointed Mr. Nii Amanor Dodoo of KPMG as the Receiver for the five banks. PRESS RELEASE GOVERNMENT ESTABLISHES NEW INDIGENOUS BANK; BANK OF GHANA REVOKES LICENCES OF FIVE BANKS AND APPOINTS RECEIVER IN RESPECT OF THEIR ASSETS AND LIABILITIES The Bank of Ghana today has granted a universal banking licence to Consolidated Bank Ghana Limited established by the Government. The Bank of Ghana has also today revoked the licences of uniBank Ghana Limited, The Royal Bank Limited, Beige Bank Limited, Sovereign Bank Limited, and Construction Bank Limited and has appointed Mr. Nii Amanor Dodoo of KPMG as the Receiver for the five banks. All deposits of the five banks are safe and have been transferred to the Consolidated Bank. Customers can carry out their business as usual at their respective banks which will now become branches of the Consolidated Bank. All staff of these banks will become staff of the Consolidated Bank. Boards of Directors and shareholders of these banks no longer have any roles. Ghana needs a strong and stable banking sector to drive the process of economic transformation. A weak banking sector means that access to credit will be limited while lending rates will continue to be high. The Bank of Ghana is mandated by law to promote the safety, soundness, and stability of the financial system and to protect the interests of depositors. In this context, the Bank has over the last year rolled out measures to strengthen the financial system to protect the interests of depositors however, a number of legacy problems have plagued the banking sector including macroeconomic factors, poor corporate governance and risk management practices, related party transactions that were not above board, regulatory non-compliance, and poor supervision, (questionable licensing processes and weak enforcement) leading to a significant build-up of vulnerabilities in the sector. From an Asset Quality Review (AQR) of banks conducted by the Bank of Ghana in 2015 and updated in 2016, a few indigenous banks were identified as vulnerable with inadequate capital, high levels of non-performing loans, and weak corporate governance. In August 2017, the Bank of Ghana closed two of those banks (UT Bank and Capital Bank) and approved the acquisition by GCB Bank of some of their assets and liabilities under a Purchase and Assumption Agreement. Other banks that were more recently licensed in 2016 and commenced operations in 2017 also began to show signs of distress, primarily due to conditions under which they obtained their licences. Efforts by these banks to extricate themselves from financial difficulty have not borne fruit. The situation has rather worsened for these banks. uniBank and Royal Bank were identified during the AQR update in 2016 exercise to be significantly undercapitalized. The two banks subsequently submitted capital restoration plans to the Bank of Ghana. These plans however, yielded no success in returning the banks to solvency and compliance with prudential requirements. The Official Administrator appointed for uniBank in March 2018 has found that the bank is beyond rehabilitation. Shareholders, related and connected parties had taken amounts totaling GH¢3.7 billion which were neither granted through the normal credit delivery process nor reported as part of the bank’s loan portfolio. In addition, amounts totaling GH¢1.6 billion had been granted to shareholders, related and connected parties in the form of loans and advances without due process and in breach of relevant provisions of Act 930. Altogether, shareholders, related and connected parties of uniBank had taken out an amount of GH¢5.3 billion from the bank, constituting 75 percent of total assets of the bank. In the case of Royal Bank, an on-site examination conducted by the Bank of Ghana in 31st March, 2018 revealed a number of irregularities. Its non-performing loans constitute 78.9 percent of total loans granted, owing to poor credit risk and liquidity risk management controls. A number of the bank’s transactions totaling GH¢161.92 million were entered into with shareholders, related and connected parties, structured to circumvent single obligor limits, conceal related party exposure limits, and overstate the capital position of the bank for the purpose of complying with the capital adequacy requirement. In the case of Sovereign Bank Limited, as part of Bank of Ghana’s investigations into the failure of Capital Bank Limited (currently in receivership), it emerged that Sovereign Bank’s licence was obtained by false pretences through the use of suspicious and non-existent capital. The bank is insolvent and unable to meet daily liquidity obligations falling due. Liquidity support granted so far to the bank amounts to GH¢21 million as of 31st July 2018. The bank has not been able to publish its audited accounts for December 2017, in violation of section 90 (2) of Act 930. Beige Bank and Construction Bank were each granted provisional licences in 2016 and launched in 2017. Subsequent investigations conducted by the Bank of Ghana, revealed that similar to the case of Sovereign Bank, both banks obtained their banking licences under false pretences through the use of suspicious and non-existent capital, which has resulted in a situation where their reported capital is inaccessible to them for their operations. A more detailed description of the current situation of the five banks can be found in the attached Annex. To help ensure that the banking sector maintains a strong indigenous presence, the government has established a new bank called Consolidated Bank Ghana Limited which will act as a bridge bank pursuant to section 127 (11) of Act 930, to assume some of the assets and liabilities of the five banks. The Government has capitalised the new bank in the amount of GH¢450 million and the Bank of Ghana has issued it with a universal banking licence with effect from 1st August 2018. The Bank of Ghana has also approved a Purchase and Assumption Agreement between Consolidated Bank and the Receiver for the five banks. Under the Agreement, Consolidated Bank has acquired all deposits and other specified liabilities, and good assets of the five banks. To finance the gap between the liabilities and good assets assumed by Consolidated Bank, the Government has issued a bond of up to GH¢ 5.76 billion. Consolidated Bank will assume the branches and staff of the five banks and will operate its head office from the Manet Tower C, Airport City, Accra. All customers will have immediate access to their funds through the existing branches and ATMs of the five banks. No customers of uniBank, Royal Bank, Beige Bank, Sovereign Bank, or Construction Bank will lose their deposits. All deposits in the five banks are safe. We expect that the new bank will be better governed and managed to become a strong indigenous bank to support Ghana’s economic transformation. The Government has assured the Bank of Ghana that it will be providing financial support to other indigenous banks as needed, to help them meet the minimum capital requirement of GH¢400 million by 31st December 2018. The Government has indicated that such support will be limited to indigenous banks that are solvent, well governed and managed, in full compliance with the Bank of Ghana’s regulatory requirements, and able to demonstrate that they have been unable to access private sector solutions for recapitalization due to market conditions. Additionally, the Government has committed to further explore policy interventions needed to make the entire financial system more robust, for the benefit of the Ghanaian economy. The Bank of Ghana remains committed to supporting the orderly development of Ghana’s banking sector, including indigenous Ghanaian banks, while promoting a strong and resilient sector to drive Ghana’s economic growth. In keeping with this commitment, the Bank of Ghana will take additional steps to ensure that all relevant parties whose actions contributed to the failure of the five banks are held accountable through administrative, civil, and criminal actions as appropriate. Background The Bank of Ghana has taken the above measures as part of its efforts to address legacy problems in the banking sector and to restore the stability and resilience of the financial system. While some of the weaknesses in the sector were attributable to macroeconomic factors, a trend of poor corporate governance, poor risk management practices, related party transactions that were not above board, regulatory non-compliance, and poor supervision (questionable licensing processes and weak enforcement) had emerged over the years, leading to a significant build-up of vulnerabilities in the sector. uniBank It would be recalled that on 20th March 2018, the Bank of Ghana appointed KPMG as Official Administrator (OA) for uniBank to help ascertain the true financial condition of the bank, protect depositors’ funds held by the bank, and explore how the bank could be returned to viability within a period of no later than six months. In line with the requirements of Act 930, KPMG submitted an Inventory of Assets and Liabilities of uniBank (Ghana) Limited on 20th April 2018 (30-day report), and a report on the Financial Conditions and Future Prospects of uniBank (Ghana) Limited on 20th June 2018 (90-day report). KPMG’s reports confirmed, based on a detailed review and validation of the financial condition of uniBank that the bank was balance sheet insolvent at the time of their appointment as official administrator and remains so. As official administrator, KPMG made efforts to ascertain the assets and liabilities of the bank and evaluated options for turning around the bank’s fortunes. KPMG, however, found that the bank’s operations are not sustainable. Among other things, the bank’s interest income and other sources of income are insufficient to cover the associated cost of funds of underlying borrowings and liabilities, as well as overheads of about GH¢0.31 billion per annum. A significant portion of the bank’s loan book which forms the largest component of the bank’s assets, is non-performing. The earning capacity of the bank continues to deteriorate. In addition, the bank’s governance and internal control environments have been assessed as weak, with significant deficiencies in credit underwriting and loan approval process, compliance and reporting. Key findings from KPMG’s reports indicated serious corporate governance, risk management, compliance and management flaws, as well as unlawful transactions involving shareholders, related parties, and connected parties. In particular: • uniBank had given out amounts totaling GH¢1.6 billion to shareholders and related parties in the form of loans and advances without due process and in breach of relevant provisions of Act 930. In addition, these shareholders and related parties had also been given amounts totaling GH¢3.7 billion which were neither granted through the normal credit delivery process nor reported as part of the bank’s loan portfolio. They were also not secured with collateral, and attracted no interest income for uniBank. Altogether, shareholders and related parties of uniBank had taken out an amount of GH¢5.3 billion, constituting 75 percent of total assets of the bank; • Out of total customer deposits of GH¢4.3 billion, GH¢2.3 billion was not disclosed to the Bank of Ghana. Loans and advances to customers were also overstated by GH¢1.3 billion in prudential returns to the Bank of Ghana; • Over 89% of uniBank’s loans and advances book of GH¢3.74 billion as of 31st May 2018 was classified as non-performing, in addition to amounts totaling GH¢3.7 billion given out to shareholders and related parties which were not reported as part of the bank’s loan portfolio; • After making allowances for impairments to recognise the deterioration in the quality of uniBank’s assets and other requirements under Bank of Ghana’s capital adequacy framework, uniBank was balance sheet insolvent with negative shareholders’ funds of GH¢6.78 billion as at 31 May 2018 (representing assets of GH¢ 2.38 billion less liabilities of GH¢9.15 billion); • The bank therefore has a capital deficit of GH¢7.4 billion, compared to the regulatory minimum of GH¢ 400 million; • After making adjustments to uniBank’s balance sheet to offset outstanding debts totaling GH¢ 428,817,961 owed it by Government contractors (backed by Interim Payment Certificates issued by the Government), the bank’s liabilities (including an amount of GH¢ 3.04 billion owed to the Bank of Ghana) remain significantly more than its assets, and is therefore insolvent To summarise, as of 31st May 2018, uniBank was insolvent, with a capital deficit of GH¢7.4 billion (compared to the regulatory minimum of GH¢ 400 million), and a capital adequacy ratio (CAR) of negative 74.65% (compared to the regulatory minimum of 10%). uniBank is also cash-flow insolvent, given that a significant portion of the its assets are locked up in interest-free loans and other advances to its shareholders and related parties. As a result of the financial condition of the bank, it has continued to survive largely on liquidity support to meet maturing liabilities including operating expenses. As of June 2018, total liquidity support that has been provided to uniBank was GH3.1 billion, including approximately GH¢ 927.2 million provided since the appointment of KPMG in March 2018. KPMG estimates that uniBank will need additional liquidity support estimated at GH¢3.0 billion through the end of 2018 to help meet overdue and maturing obligations and operating expenses. Further reliance on liquidity support at this stage is unsustainable, and the bank’s continued inability to honour outstanding obligations to depositors including financial institutions, public sector institutions, and others, continues to fuel liquidity pressures in the financial system. uniBank’s shareholders and related parties have admitted to acquiring several real estate properties in their own names using the funds they took from the bank under questionable circumstances. Promises by these shareholders and related parties to refund monies by mid-July 2018 and legally transfer title to assets acquired back to uniBank have failed to materialize. Based on the Bank of Ghana’s review of KPMG’s assessment of the financial condition of uniBank, the Bank of Ghana has concluded that uniBank is insolvent and has no reasonable prospect of rehabilitation, or a reasonably credible path to viability. In arriving at this conclusion, the Bank of Ghana has carefully considered the options provided under Act 930 to rehabilitate a bank under official administration. The Bank of Ghana finds that, in the interest of promoting financial stability, protecting the interests of depositors and lenders, minimising the costs to the tax payer, and restoring integrity in the financial sector, the only reasonable option is to fully resolve the bank by revoking its banking licence and winding down its affairs through a receiver appointed by the Bank of Ghana. The Royal Bank (Royal) Royal Bank was licensed as a universal bank in October 2012. It has over the last few years experienced solvency and acute liquidity challenges. An on-site examination conducted by the Bank of Ghana in 31st March, 2018 revealed a number of irregularities. The Bank of Ghana appointed an advisor for Royal Bank in May 2018 to advise management of the bank, with the primary mandate to stabilize and improve the affairs of the bank. Based on the Bank of Ghana’s assessment, Royal is insolvent and faced with acute liquidity challenges. Specifically: • The bank suffered severe capital impairment due to under-provisioning for loans, over estimation of investments with other financial institutions, and overstatement of capital on account of fixed assets which were rejected by the Bank of Ghana for capital purposes. This resulted in an adjusted capital of negative GH¢484 million, yielding a CAR of negative 80.53 percent. a capital deficiency of GH¢567.78 million and a net-worth of negative GH¢498.63 million as at 31st May, 2018; • The bank has persistently faced serious liquidity challenges since September 2017, resulting in the continuous breach of the cash reserve ratio required by section 36 of Act 930. It has survived on liquidity support totaling GH¢ 295 million; • Its non-performing loans constitute 78.79 percent of total loans granted, owing to poor credit risk and liquidity risk management controls; • A number of the bank’s transactions totaling GH¢161.92 million were entered with shareholders and related parties structured to circumvent single obligor limits under Act 930, conceal related party exposure limits under Act 930, and to overstate the capital position of the bank for the purpose of complying with the capital adequacy requirement. The Beige Bank Limited The Beige Bank commenced banking operations in December 2017 after operating as a savings and loans company since [ ]. A special examination conducted by the Bank of Ghana into the affairs of the bank six months after the commencement of its operations, revealed that: • Funds purportedly used by the bank’s parent company to recapitalize were sourced from the bank through an affiliate company and in violation with regulatory requirements for bank capital. In particular, an amount of GH¢163.47 million belonging to the bank was placed with one of its affiliate companies (an asset management company) and subsequently transferred to its parent company which in turn purported to reinvest it in the bank as part of the bank’s capital. The placement by the bank with its affiliate company amounted to 86.86% of its net own funds as at end June 2018, thereby breaching the regulatory limit of 10%. Furthermore, the purported use of the same funds by the parent company of the bank to reinvest in the bank was in contravention of the Bank of Ghana’s requirements for bank capital. Also, the bank has not been able to recover these funds for its operations. • The bank persistently breached the cash reserve requirement (CRR) of 10% (CRR at 23 July, 2018 was 1.97%) since the beginning of January 2018; • The quality of the bank’s loan portfolio had seriously deteriorated resulting in a Non-Performing Loans Ratio (NPL) of 72.80%; • The bank’s Capital Adequacy Ratio (CAR) was assessed to be negative 17.18% as against the regulatory minimum of 10%, thus, recording a capital deficit of GH¢159,162,557.64, rendering the bank insolvent. Sovereign Bank Limited (“Sovereign”) Sovereign Bank Limited was licensed as a universal bank in January 2016 and began operations in April 2016. As part of Bank of Ghana’s investigations into the failure of Capital Bank Limited (currently in receivership), it emerged that Sovereign Bank’s initial capital contributed by its shareholders was funded from transfers from Capital Bank which had been presented to the Bank of Ghana as investments on behalf of the bank. Subsequent to its licensing, a substantial amount of the bank’s capital was placed with another financial institution as an investment for the bank. The bank has however not been able to retrieve this amount from the investment firm with which it was placed, and it has emerged that the investments were liquidated by the shareholders and parties related to them. Following enquiries by the Bank of Ghana, the promoters of the bank admitted that they did not pay for the shares they acquired in the bank. The promoters of the bank have since surrendered their shares to the bank, while the directors representing those original shareholders have since resigned. In April 2018, the Bank of Ghana appointed an Advisor to advise the management of the bank with a view to improving the affairs of the bank. Following further deterioration in the capital of the bank due to its inability to recover the investments placed with financial institutions, as well as impairments to its loan book, its capital adequacy ratio is currently negative 11. The Bank of Ghana has concluded that Sovereign Bank is insolvent, and that there is no reasonable prospect of a return to viability. The bank is unable to meet daily obligations as they fall due. Liquidity support granted so far to the bank amounts to GH¢12 million as of May 2018. The bank has not been able to publish its audited accounts for end-December, 2017 breaching section 90 (2) of Act 930. The bank’s current situation has resulted in persistent breaches of key regulatory requirements and prudential limits. The Construction Bank Limited (“Construction Bank”) Construction Bank was licensed in May 2017 and commenced operations in December 2017. In the course of the official administration of uniBank, the Bank of Ghana discovered certain transactions involving Construction Bank. Further investigations revealed that: • the initial minimum paid up capital of the bank provided by its promoter/shareholder, was funded by loans obtained from NIB Bank Limited (GH¢34 million) and uniBank (Ghana) Limited (GH¢61.00 million), contrary to section 9 (d) of Act 930; • An amount of GH¢80 million out of the amounts reported as the bank’s paid up capital and purportedly placed with NIB and uniBank, remains inaccessible to the bank; • The bank’s inability to inject additional capital to restore its capital adequacy to the minimum capital of GH¢ 120 million required at the date of licensing threatens the safety of depositors’ funds and the stability of the banking system. Owing to the bank’s inability to access investments purportedly made in its name with other financial institutions, the Bank of Ghana has concluded that a total of GH¢80 million of the bank’s GH¢120 million initial paid up capital is unavailable to the bank for its operations, leaving an amount of GH¢ 40 million (one-third of the minimum capital of GH¢ 120 million). The Bank of Ghana has since requested the bank’s shareholder to recapitalize it to the minimum capital required at the time of its licensing. While the shareholder submitted plans to the Bank of Ghana, these plans have not yielded any success.
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Executive Director for policy think tank, Institute for Liberty and Policy Innovation,ILAPI, Bismark Peter Kwofie is predicting that Ghana may soon be hit by bank rush leading to financial panic. He argues that when this is to happen, most banks are likely to collapse, credit and loan services are likely to be halted.’’ His comments is coming few hours after the Bank of Ghana consolidated five banks under the newly created Consolidate Bank Limited. According to the Central Bank Governor, Dr Ernest Addison, the affected banks are Royal Bank, Beige Bank, Sovereign Bank, The construction Bank and Unibank. Government according to the Central Bank has committed 450 million cedis to support these banks. Beige, Sovereign and Construction Banks obtained their licenses under false pretenses using fictitious and nonexistent capital”. He further explained that explained the Sovereign Bank obtained their license under false pretence, an act that could attract criminal charges. He also noted that Beige and Construction Bank used fictitious and non-existent capital to obtain licenses. The banks therefore obtained licenses under false pretenses. But reacting to the news, Mr Bismark Kwofie indicated that, the financial panic will lead to serious challenges and ‘’With this only security agencies such as Menzgold will stand to gain because people will try and buy hard securities like gold and bauxite for keep with interest. In general the financial intermediation function of the banks and the credit and loan companies does not manifest. This is due to the fact that the BANK CONFIDENCE goes down and the trust people have in banks dwindle.’’ He said: ‘’The financial sector of every economy is the fuel of the economy which sees to it that the economy runs. Without the financial sector most economies cannot run as expected. The main function of the financial sector is to make it possible for people who are in need of excess funds for their investments to meet people with excess funds to borrow. Aside the ability to lend and the ability to borrow of the people involve, what binds the financial services and the industry players is trust thus the ability of the financial services to deliver on their core functions. When the trust is broken, the sector is likely to fail. That is customers of the financial services hereafter the banks, credit unions and the savings and loans will rush into to withdraw their savings and invest them into other properties such as lands and estates.’’ Mr Kwofie suggest ‘’there is an evident that Ghanaians are losing trust in the financial services due to the collapse of some banks and credit unions without proper and better way of the customers retrieving their money/funds or savings.’’ ‘’But ILAPI headache today is that the financial services of the economy mainly the banks and the savings and loans companies have shifted their core function of financial intermediations. That is, facilitating the channelling of funds between lenders and borrowers indirectly. Banks and savings and loans are to connect surplus and deficit agents. Thus they help those with surplus funds to meet agents with deficit funds to meet indirectly to help promote economic development. In simple words these financial services help people with extra money (savers) to meet people who do not have enough funds to carry out a desired activity (borrowers).’’ Advising banks he said: ‘’Banks must stop opening and scattering branches all over the country with their poor services. They must focus on quality services than investing in unproductive assets. If care is not taken Ghana will be hit by BANK RUSH leading to financial panic,’’ he added.
Published in General News
The Bank of Ghana has assured customers of the five banks, which have been consolidated under one bank, that their deposits are safe. The Central Bank governor Dr Ernest Addison who made the announcement by the BoG indicated that depositors should not fear. Dr Addison announced that it has consolidated five banks because they have failed to meet the minimum capital requirement. The affected banks are Royal Bank, Beige Bank, Sovereign Bank, The construction Bank and Unibank. Government according to the Central Bank has committed 450 million cedis to support these banks. Governor of the BoG, Ernest Addison at a press conference today [Wednesday] said: “Beige, Sovereign and Construction Banks obtained their licenses under false pretenses using fictitious and nonexistent capital”. He further explained that explained the Sovereign Bank obtained their license under false pretence, an act that could attract criminal charges. He also noted that Beige and Construction Bank used fictitious and non-existent capital to obtain licenses. The banks therefore obtained licenses under false pretenses. He however, assured customers of the affected that their deposits are safe and secured. It has also transferred their staff to the Consolidated Bank. "To conclude, let me assure clients of the five banks that their deposits are safe. Clients of these banks can carry out their normal banking transactions at their respective banks which will now become branches of the Consolidated Bank of Ghana Limited. "All staff of the affected banks will become staff of the Consolidated Bank, we do not expect any immediate job losses as a result of this consolidation, thank you".
Published in Business
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BoG Consolidates Five Banks into one

The Bank of Ghana has announced that it has consolidated five banks because they have failed to meet the minimum capital requirement. The affected banks are Royal Bank, Beige Bank, Sovereign Bank, The construction Bank and Unibank. Government according to the Central Bank has committed 450 million cedis to support these banks. Governor of the BoG, Ernest Addison at a press conference today [Wednesday] said: “Beige, Sovereign and Construction Banks obtained their licenses under false pretenses using fictitious and nonexistent capital”. He further explained that explained the Sovereign Bank obtained their license under false pretence, an act that could attract criminal charges. He also noted that Beige and Construction Bank used fictitious and non-existent capital to obtain licenses. The banks therefore obtained licenses under false pretenses. He however, assured customers of the affected that their deposits are safe and secured. It has also transferred their staff to the Consolidated Bank. "We do not expect any immediate job losses" he assured.
Published in Business
The National Association of Graduate Teachers, NAGRAT, is demanding the suspension of the double-track system for Senior High Schools until enough consultations are carried out. The request was contained in a statement issued by NAGRAT. NAGRAT says they have not been contacted with regards to the decision by government to introduce the double track system. “If it is rolled out anyway without our inputs and our advice, when there are consequences no one should hold us responsible. The way forward is for government to suspend the programme and do a wider consultation of stakeholders,” Angel Carbonu indicated. NAGRAT indicated that the broader consultations with everyone, including religious bodies, community leaders, other teacher unions and political party representatives. Meanwhile, NAGRAT wants the heads of Senior High Schools who form the Conference of Heads of Assisted Secondary School (CHASS), to state their position on the proposed double-track system. “But for CHASS members to be quiet on such a critical and important policy is absolutely disappointing. We expected CHASS to come out and raise issues, regardless of whatever victimization some of them envisage,” he said. President Akufo-Addo has reaffirmed his decision on the introduction of the double-track SHS system which will accommodate the increase in enrolment in the Senior High School. “The objectives of the double track system are to create room to accommodate the increase in enrolment. Furthermore, it will reduce class sizes, it will increase the contact hours between teachers and students, and increase the number of holidays. All this, ladies and gentlemen, is going to be achieved with the existing infrastructure” he said. “I am confident that the end result of the system would lead to an increase in the quality of our SHS structure. I am inviting everybody – parents, teachers, administrators, students, the Parent Teacher Associations, the Regional and District Directors of Education – to embrace this system, and work to make sure that it succeeds,” he said.
Published in General News
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Huawei Beats Apple In Smartphone Sales

Huawei just reached a major milestone, passing Apple to become the world’s second largest smartphone seller. The Chinese smartphone maker sold around 54 million phones last quarter, up more than 40% compared to the same period last year, according to research firms IDC, Canalys and IHS Markit. That was enough to not only beat Apple (AAPL), but also narrow the gap with market leader Samsung (SSNLF). Samsung sold more than 70 million phones last quarter, down about 10% from the same time last year. “The continued growth of Huawei is impressive, to say the least, as is its ability to move into markets where, until recently, the brand was largely unknown,” IDC analyst Ryan Reith said in a statement. Related: Huawei profits jump 28% Huawei has leaped into second place despite being virtually locked out of the world’s biggest economy. The Chinese smartphone and telecom equipment maker has struggled to gain a toehold in the United States, mainly because of official concerns that its technology could be used by the Chinese government to gather intelligence. Huawei has repeatedly denied that its products pose security risks. Earlier this year it failed to clinch its first partnership with a major US carrier, after talks with AT&T fizzled out at the last minute. Having the backing of a wireless carrier is key to making inroads in the United States. CNN is part of WarnerMedia, which is owned by AT&T. “Despite its failure to strike a US carrier partnership … the company has turned around quickly, moving away from its drive for profitability and focusing instead on finding volume growth at the low end,” Mo Jia, an analyst with Canalys, said in a statement. Selling millions of cheap phones has worked well for Huawei in the Asia Pacific region, where its sales more than doubled compared with the same quarter last year, according to IHS Markit. It also experienced strong growth in Europe, the Middle East and Africa. The success in its smartphone division comes as Huawei faces significant headwinds in its telecommunications business. Following the United States, security officials in the UK, Australia and Canada have in recent months warned of potential national security risks from using the Chinese firm’s telecom equipment. Huawei is one of several companies racing to develop capabilities for 5G, the next generation of wireless technology. If major countries refuse or ban the use of Huawei’s telecom gear, it would significantly handicap the company’s ambition to become a global leader in 5G technology. Source: BBC
Published in Companies
Faithfulness, dedication to duty and volunteerism by eleven National Service Personnel who served with the Ghana Railway Company Limited (GRCL) has earned them a job, certificate of honour and a thousand Ghana cedis each for contributing to increased revenue on the service train run by the company. The service personnel, who are degree and Higher National Diploma (HND) holders in fields such as engineering, marketing, geography and mathematics among others, were not perturbed by the many derogatory comments from staff and other personnel when they decided to take up the selling and monitoring of tickets on the diesel multiple units (DMU) before commencing their real jobs at their various sectors. The dedication of the eleven personnel spanning from January to July has earned the company a total of GHC69,250. It is said that the DMU had only two permanent staff to manage the selling of tickets which did not yield much to the company and that the GRCL sought among the 50 personnel posted to the company for individuals who could voluntarily assist in that service centre to help raise the revenue margin. Mr Ernest Arhin, Acting Personnel Manager of the GRCL, during a short ceremony to honour the personnel, said their arrival and taking up of the position as ticket seller was timely. “These eleven personnel volunteered and went the extra mile to accept this onerous responsibility in addition to their normal duties assigned to them at their various departments”. He said that the image of the company was sinking among the public, before the intervention by the service personnel, because those who were in charge of the passenger services “looked shabbily dressed, smelt of alcohol and had bad human relations”. Mr Arhin said the personnel exhibited good attitude, high skills and put up decent appearance during the performance of their duties on the train, adding, “They were always punctual and sometimes use part of their meagre allowance to board vehicle to the departure station when the official vehicle was not available’. “Above all, their performance on the train redeemed the lost image of the GRCL to an appreciable level”, it was in recognition of all these that the management of GRC was awarding them with these certificates of Recognition to serve as an example worthy of emulation to those who may be required to act or perform in such capacities, he added. Mr Joe Ghartey, Minister for Railway Development, said the eleven had written their own history and must serve as an example for the current generation on what humility, hard work and dedication to duty could do for any individual. “These people are graduate and yet decided to sell tickets…you are wise men who have not killed the goose laying the golden eggs…what we all do for our country’s development,” he added. He said the sector was preparing itself to be more efficient and effective public enterprises in the country and called for committed individuals to help realise the vision. Mr William Addo, leader of the Personnel, whiles expressing gratitude, said the insults and degrading words from and among the workers did not stop them from giving of their best because, “We purposed in our heart to contribute our quota to national development whether we are motivated or not”. He lauded Mr Godwil Ntarmah, Union Chairman of the GRC and the Minister for inspiring them to achieve their current feat. The eleven dedicated personnel include: Wisdom Addo and Joseph Bosso both HND Civil Engineers, Kotey Abbosey-Kotey, BSc, Geography and Regional Planning, Osei Appiah Gideon, BSc, Planning, Patience Akonner, HND Marketing and Evelyn Kagbetor, BSc Marketing. The rest are: Prince Tetteh BA, Sociology and Economics, Evans Akpini, BA, Economics and Maths, Patricia Aba Dramani HND Accountancy, Daniel Sam, HND purchasing and supply, and Foster Kweku Wiredu, BA Communication and Media studies. Source: GNA
Published in General News
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