Special Prosecutor Probes Banking Sector Crisis

The Office of the Special Prosecutor says it has begun full scale investigations into the banking and financial sector crisis, which led to the collapse of some banks and other financial institutions in the country.

According the office, the investigations target alleged corruption and corruption-related offences perpetrated by officials of the Bank of Ghana, banks, specialised deposit-taking institutions and financial holding companies.

In a statement from the OSP, Tuesday January 25, 2022 served notice that “Any official found culpable and complicit would be arrested and prosecuted.”

“The OSP invites members of the public who have knowledge of the commission of corruption or corruption-related offences to lodge complaints with the OSP against any official in this regard.”

The statement assured that informers, whistleblowers and witnesses will be protected.

It would be recalled that the banking and financial sector clean up started by the government somewhere in August 2017.

A total of nine universal banks, 347 microfinance companies, 39 microcredit companies or moneylenders, 15 savings and loans companies, eight finance house companies, and two non-bank financial institutions were caught in the collapse.

The Securities and Exchange Commission also announced the revocation of licenses of 53 Fund Management Companies.

They were said to have engaged numerous degrees of corporate governance lapses. The total estimated cost of the state’s fiscal intervention, excluding interest payments, from 2017 to 2019 was pegged at GHS16.4 billion.

The crisis left some clients in distress, as many of the customers have been struggling to retrieve their savings and investments. Also, several workers were in financial institutions were also laid off as a result.