Collapsed finance firms: Come for reposting – NSS to affected personnel

The National Service Secretariat (NSS) has said it will repost service personnel who were posted to the now-defunct financial institutions.

A cleanup exercise to sanitise the financial sector was undertaken by the Bank of Ghana (BoG) which resulted in the collapse of nine banks by the end of 2018 after the regulator reviewed the minimum capital requirement to GHS400 million from GHS120 million and revoked the licences of some insolvent banks.

The collapse of the nine local banks birthed the Consolidated Bank Ghana (CBG) Limited.

The BoG, on Friday, 16 August 2019, revoked the licences of 23 insolvent savings and loans companies and finance houses including GN Savings and Loans belonging to businessman Dr Papa Kwesi Nduom.

The Central Banks's action was taken pursuant to Section 123 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), which requires the Bank of Ghana to revoke the licence of a Bank or Specialised Deposit-Taking Institution (SDI) where the Bank of Ghana determines that the institution is insolvent.

The Bank of Ghana has also appointed Mr Eric Nipah as the Receiver for the specified institutions in line with section 123 (2) of Act 930.

On Wednesday, 27 November 2019, the Executive Director of NSS, Mr Mustapha Ussif noted that the secretariat is aware it posted some national service personnel to the now-collapsed microfinance institutions and urged them to return to the Secretariat for reposting.