Special Prosecutor begins probe into financial sector crisis

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

In a statement, the office said investigations were targeting “alleged corruption and corruption-related offences perpetrated by officials of the Bank of Ghana, banks, specialised deposit-taking institutions and financial holding companies.”

“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 added.

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

The financial sector cleanup started by the government in August 2017 led to the collapse 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.

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

A number of these institutions were found to have varying 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 collapse of the institutions left clients in distress, as many of the customers have been struggling to retrieve their savings and investments.

Hundreds of workers were in financial institutions were also laid off as a result.

Source: Citinewsroom

Ray Charles Marfo

Digital Marketing and Brands Expert

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