Former workers of Capital, UT Bank to receive their severance package from Jan. 18

By Justice Kofi Bimpeh
Defunct Capital and UT Bank

Former workers of defunct Capital and UT Bank will from Friday, January 18, 2019, receive their severance package.

A press statement from the Joint Receivers of Capital and UT Bank outlined the modalities for the severance package.

According to the statement signed by Vish Ashiagbor and Eric Nana Nipa, the Joint Receivers' Secretariat will start paying the former workers their severance package from January 18, 2019, but prior to them receiving the severance package, the workers will be required to sign a deed of subrogation.

The deed of subrogation will allow the Bank of Ghana to cede its shares of the money recovered from the asset and liabilities of the defunct bank to the workers, and this will also require the former workers to assign their interest and receivership to the Bank of Ghana.

The Joint Receivers Secretariat will from Wednesday, January 16 to Thursday, January 31, 2019, be open for the former workers to come and sign the deed of subrogation.

Read also: Ex-UT, Capital Bank workers to receive their exit pay this week

After 17 months of job loss to these workers of Capital and UT Bank, the spokesperson for the former workers, Raymond Adai Danquah said it a piece of good news for them.

He further admonished the former workers to use the severance package judiciously.

Related: Exit pay of ex-UT, Capital bank staff still unpaid

The Bank of Ghana in August 2017 revoke the license of Capital and UT Bank, Governor of the Bank of Ghana Dr Ernest Addison in a news conference said the Bank of Ghana had approved a Purchase and Assumption (P&A) transaction with GCB Bank Ltd. that transferred all deposits and selected assets of UT Bank Ltd and Capital Bank Ltd to GCB Bank Ltd.

To that effect, the main offices and branches of UT Bank and Capital Bank are now under the control of GCB bank; customers of UT Bank and Capital Bank are now customers of GCB bank, and all deposit customers will continue to have access to their funds.

After the revocation of the license, most of the workers of the two defunct Banks loss their jobs and have been negotiating for a severance package.