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Jinapor: BoG is solely responsible for the Banking crisis

Former Deputy Minister of Power, John Jinapor has indicated that the Bank of Ghana is solely responsible for the crisis in the banking sector leading to the collapse of some seven indigenous banks.

His comments followed the appearance of the governor of the Central Bank, Dr Ernest Addison and officials of the Finance Ministry before the Finance Committee of Parliament to answer questions on the circumstances leading to the collapse of the banks.

The collapsed banks are; Capital, UT, Sovereign, Royal, Beige, Construction and UniBank.

Five of the aforementioned banks – Sovereign, Royal, Beige, Construction and UniBank have since been merged into one entity under the name Consolidated Bank of Ghana.

Mr John Jinapor said per the answers given by the governor of the Central Bank to questions on the circumstances leading to the banking crisis “clearly the fault ought to be put at the doorsteps of the Bank of Ghana and not any other person.”

“Any other thing that’s followed up for me is consequential on the fact that the Bank of Ghana failed to do due diligence to enforce the law. There was so much laxity and I think if there is anybody to be held responsible it ought to be the Bank of Ghana themselves, because clearly at the meeting, it is obvious that they failed to implement the law to the letter. There was some level of complexity. There was some level of laxity,” he added.

The former Deputy Power Minister noted worryingly that the Finance Committee is in the dark regarding the fate of workers of Consolidated Bank of Ghana (CBG).

“As we speak we don’t know the fate of the workers whether they are going to be guaranteed employment for one month, three months while they search for employment,” he stated.

According to Jinapor, the Committee’s attempt to get the Central Bank’s governor to make a definite statement on the employment status of the CBG staff was unsuccessful.

By: Kwaku Sakyi-Danso/ghanamps.com

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