Corporate governance expert, Marian Barnoh, has said the board members of the five banks that have been consolidated failed to deliver on their mandate.
Mrs Barnoh, the former Chair of Merchant Bank, said the failure of the boards to ensure that proper checks are place resulted in operational challenges and breach of regulations that forced the Bank of Ghana to act to safeguard depositors’ money.
“The board’s duty is to ensure that there are checks and balances; the board’s duty is to ensure that there are risk management frameworks in place; the board’s duty is to ensure that credit management is in place; the board’s duty is to ensure that sanctions are in place,” she said Thursday evening.
“If loans have gone bad, the question is what happened to risk management? …What happened to accountability? Because that is the role of the board: to make sure that they receive the necessary report especially through the audit committee and the risk management committee,” she stressed.
The Bank of Ghana shook the banking space on Wednesday when it announced the creation of Consolidated Bank Gh. Ltd to take over the struggling indigenous banks.
According to the BoG, the Consolidated Bank Ghana Limited has assumed selected assets and liabilities of the five banks with immediate effect.
Government has made 450 million cedis available for the Consolidated Bank as starting capital and has named Daniel Addo as its CEO.
At UniBank, an Asset Quality Review (APR) of the bank revealed that unscrupulous activities of shareholders, related and connected parties contributed to the bank’s woes.
‘If there is a breach of the law, there should punishment to serve as a deterrent,” she said.
She has admonished other banks to take a cue from the recent events.
“What has happened is a wake-up call. The Bank of Ghana has taken a serious action and I want to believe that this is not the end. They will look at themselves, they will look at banking supervision…and directors must take responsibility for what happens,” she said.
Source: Joy Online