Banking Sector Clean-up may need Forensic Audit – Gatsi

Dean of the School of Finance at the University of Cape-Coast, Dr. John Gatsi, has suggested that the recent ruling of the Appeals Court quashing the license of Unicredit, should catalyze questions about the banking sector cleanup by the Akufo-Addo government.

In the write-up, Dr. Gatsi suggests that Ghana would be served better if the supposed cleanup which was seen as a tool of political vindictiveness by the Akufo-Addo government if a forensic audit is conducted into the process which resulted in the closure of a number of banks and financial institutions.

“The banking sector cleanup may need a forensic inquiry that will address the painful experiences of entrepreneurs, investors and customers,” Dr. Gatsi wrote.

The Court of Appeal on July 7th, 2022, declared the decision of the Bank of Ghana to revoke the license of Unicredit as an unlawful exercise of its powers.

The Court, therefore, quashed the revocation of Unicredit Ghana Limited’s license which was contained in the Bank of Ghana’s notice dated 16th August 2019.

The panel of three presided over by Justice Gbiel S. Suubaareh consequently quashed the revocation exercise of Unicredit Ghana Limited’s license.

The unanimous decision of the Court of Appeal chaired by Justice Suubaareh with Justice Merley Afua Wood and Justice Janapare A. Bartels reverses the revocation of unCredit license as was contained in Bank of Ghana’s notice dated 16th August 2019.

According to Dr. Gatsi, the banking and financial sector cleanup which cost some Ghc21billion according to the Akufo-Addo government appeared to have been used as a tool of bullying by politicians who were out for opponents.

Dr. Gatsi adds that those who vindictively used the Bank of Ghana to close down the banks and financial companies of others may soon have to experience similar bitter victimization.

“There is a time coming and approaching very soon that using regulatory power in a manner that excludes other citizens and bullies them will turn to those involved as a poison pill that they cannot swallow if the regulations are applied to them in the same manner,” he stated.

Source: whatsupnewsghana