Prime News Ghana

EOCO begins investigations into the collapse of 5 banks

By Hagar Ofosua

The Economic and Organized Crime Office (EOCO), has begun investigations into the circumstances that led to the collapse of 5 banks into the Consolidated Bank Ghana limited.

 The anti-graft agency is expected to investigate matters relating to obtaining licenses under false pretenses, with non-existent capital, among other matters.

 However, Speaking on Accra- based JOY FM, Head of Banking Supervision of the Bank of Ghana, Osei Gyasi noted the Central Bank was not thorough in the verifying the capital of the collapsed banks.

 “We could have been more thorough in granting licenses to collapsed banks. There were omission and commissions here and there with regards to verification", he added.

He however added that some measures are being implemented to address the issue.

 “We have looked at our processes and procedures and whatever capital verification report that comes out. What we have done is to put in place quality control procedures to ensure that the work has been done properly and thoroughly and properly reviewed before it is approved”, he said.

Read Also:Heads of collapsed banks could be prosecuted –BoG hints

 The BoG on Wednesday, August 1, 2018, collapsed five banks and merged them into what the BoG called 'Consolidated Bank Ghana Limited.

The banks are BEIGE, Sovereign, Construction, Royal, and UniBank.  According to the Bank of Ghana, the reason for the merger includes liquidity challenges, the inability of the said banks to meet the Ghc400 million minimum Capital requirement, and the fact that some of these banks obtained their licenses under false pretenses and with nonexistent capital.

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