Ghana NewsSpotlight

OSP begins probe into banking, financial sector crisis

The Office of the Special Prosecutor (OSP) has commenced full investigations into the banking and financial sector crisis which precipitated the collapse of some banks and financial institutions and the financial sector clean up and recapitalisation reforms.

The investigations according to a statement from the OSP will target alleged corruption and corruption-related offences perpetrated by officials of the Bank of Ghana, banks, specialised deposit-taking institutions and financial companies.

The OSP has invited 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.

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The OSP said whistleblowers will be duly protected.

In 2017, the New Patriotic Party (NPP) government decided to save the financial sector from collapse in what became known as the “financial sector clean up”.

In the exercise, the government collapsed about nine different banks, 23 other Savings and Loans companies, 386 different Microfinance companies, and 53 fund management institutions in the country.

This was after the Bank of Ghana had conducted an asset quality review in 2015 and 2016 and came out with a report that there were severe challenges with solvency, liquidity, and asset quality in Ghana’s banking industry, with some banks showing significant under-provisioning and capital shortfalls.

Many youths working in these financial institutions lost their jobs, adding to the hike in youth unemployment in the country.

 

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