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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In response to another outrageous statement on Ghanaweb by this same Adongo, which I couldn't comment on but dropping my two cents here as always. Mahama, Adongo and NDC are losing. Just a few days ago or was it yesterday, it was reported Mahama an avowed tribal bigot had condemned some comments bothering on ethnocentrism through a statement issued by Mogtari. The tepid condemnation of Mahama's ethnocentrism has today just after 24 hours, emboldened Adongo a staunch supporter of his, to go full throttle and to town with the rather notorious ethnocentrism and tribalism of Mahama. A very, very viciously divisive character whom everybody in the NDC has personal scores to settle from the elders of the party to the lowest according to a statement from Victor Smith a member of their party. Such an individual is totally unfit and ill-suited to govern this country and just as in 2016, he was shown the door, it will be repeated in 2020 and in 2024 for anybody the NDC will present until that party cures their ethnocentric and tribalistic divisive proclivities and tendencies in our pluralistic society. That is not what Ghana and Africa is about. This also goes to how badly the mess in the banking sector has exposed how unfit Mahama and the NDC are unfit to lead this country.
... A financial autopsy report into the collapse of UT bank has linked the indigenous bank's demise to Ibrahim Mahama, brother of then-President John Mahama. He owed the bank ¢302m, a facility that was extended to his four companies in ways that required UT Bank to bend over backwards. His persistent defaulting payments exposed the bank to great risk and put shareholders in great pain. That was why the Board called an emergency meeting on 20th May 2016 to discuss how to deal with a politically exposed person who has paid and is not paying his loans. Minutes of that meeting, as told from a member of the Board, mentioned that they were disappointed "[Ibrahim Mahama] had made no effort to honour any of the assurances he gave when he met them on 29th March 2016." But writing off the loan meant writing of the bank. If they wrote off the loan anybody would be writing anything as the bank would be closer to collapse. And so the Board directed Management "to exert more pressure." Q: How do you apply pressure to a politically-exposed person? A: Meet his political ties. In December 2013, Myjoyonline.com reported that then-Vice-President Mahama sat in a June 2012 meeting with Board members of Merchant Bank over his brother's defaulting loans. Ibrahim Mahama's Engineers and Planners company had a $38 million debt, which constituted 30% of the struggling bank's 50% non-performing loans. Merchant Bank chased the businessman who was forced to petition the Presidency for an intervention. Merchant Bank was sold off to Fortiz and renamed Universal Merchant Bank (UMB). Fast forward to March 2016, another bank with the same defaulting client, Ibrahim Mahama, mulled at meeting his brother. The Board planned to have its chairman Mr. P.K Amoabeng meet President Mahama, his brother, Ibrahim Mahama and a deputy Finance Minister "to discuss the way forward." At another meeting where the Board was expecting to meet Ibrahim Mahama, the businessman sent an emissary instead: Mr. Adi-Ayitevi. The Board, according to the report, "felt slighted and disrespected by his actions" and "questioned his credibility as a businessman." But it was still in the mood to meet him at another emergency meeting on June 3, 2016. The Board's plan was to collect their monies before December 2016 when the country would have gone to the polls. At this third meeting over Ibrahim Mahama's non-performing loans, the businessman assured the Board he was "making every effort to pay the amounts outstanding from related companies." Thirteen months after this Board meeting, the licence of UT bank was withdrawn. The Bank of Ghana said the local bank had an irredeemable liquidity crisis. One of the things that led to this liquidity crisis is the decision of UT Bank to give ¢261.4m to four of Ibrahim Mahama's companies. They are Dzata Cement, Holman Brothers Ltd, MBG Ltd and Engineers and Planners. UT Bank requested that BoG waive the rule that limits the amount of money a bank can give a client. BoG waived it and UT gave four different loans to four companies all owned by Ibrahim Mahama.
this adongo man is a real i-d-i-o--t paa!!.
Folks try to understand the poor guy.This malady comes to people who eat the head of mad dogs.But at least he should be asking himself how long it takes a bank to go under, The signs have been there all along;long before the current governor arrived on the scene. Remember Bawumia used to warn about this phenomenon a long time ago. Adongo has just been given the assignment by his party to diss the Finance Minister and the governor of the Bank of Ghana .That is the job assigned to him by his party . And the poor sod has no choice but to obey even though most times he sounds as if he drank pito after taking Tramadol.
This Adongo boy talks like typical ***barred word***. He never make sense. Based on what should the Governor of BoG resign?
Please you people should forgive my brother for he has not been taking his psychiatric drugs and so it affects him anytime he appears on a radio program to talk
All NDC Know is 'must resign, must resign! NPP should know that it is a TRAP NDC is using. Nana Addo SHOULD NOT SACK OR LET ANYONE RESIGN. What did they tell us? ***barred word***!
@ KOFI IN LONDON, you see oooo!!!!
Mr Adongo must spare us his thoughtless statements. Was this current governer responsible for the mess those merged banks committed? Absolutely not. Non compliance of bank of Ghana regulations by these distressed banks occured in the era of NDC's administration of which Adongo was part. The present Governor has come to clean up the mess and bring sanity into the banking operations in the country. I dont know whether Adongo consults before making those statements or he is in a different world. He is making a mockery of himself.
use your head buddy, why must he resign?