Special Prosecutor begins investigations into financial sector crisis

The Office of the Special Prosecutor (OSP) says it has begun investigations into the banking and financial sector crisis that resulted in a number of banks and financial institutions folding up.

In a statement, the OSP says 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.”

The OSP has also asked for whistle-blower assistance towards the investigations.

“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 that regard,” it said.

In August 2017, the government began what it termed a financial sector clean-up.

The events that followed saw the revocation of licenses of nine universal banks, 347 microfinance companies, 39 microcredit companies, 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.

The Bank of Ghana, which is the sector’s regulator, attributed the collapse of the institutions to a number of corporate governance practices.

Currently, before the courts, the founder of defunct Capital Bank, Ato Essien, and 2 others are standing trial on charges of stealing, abetment to stealing, conspiracy to steal and money laundering.

They have been accused of engaging in illegal acts that led to the dissipation of the GH¢620-million liquidity support given to Capital Bank by the BoG between June 2015 and November 2016.