Locked up funds: BoG struggling to revoke licence of indebted institutions – Dr. Anane Antwi

Dr Adu Anane Antwi, Convenor for the Locked-up Investment Holders Forum, has stated that the Bank of Ghana (BoG) faces difficulties in revoking the licenses of institutions that owe them and are unable to repay.

The forum, a group of individuals with investments stuck in BoG-regulated financial institutions, staged a protest in Accra on Wednesday to urge the central bank to address their concerns. A meeting was also held between some forum members and BoG Governor, Dr Ernest Addison, along with other officials.

The forum proposed two solutions in its petition. The first suggestion was for the BoG to financially assist the struggling institutions by covering approximately 20% of the locked-up funds, with the remainder being converted into bonds or equity. The second suggestion was for the BoG to revoke the licenses of insolvent institutions, assume control of depositors’ funds, and repay the investors, similar to the approach taken in 2017/2018.

In an interview with Umaru Sanda Amadu on Citi FM’s Eyewitness News on Wednesday, Dr Anane Antwi shared that the BoG Governor acknowledged their predicament and expressed his understanding of the challenging situation they were in.

He further explained that the Governor clarified that the financial institutions in question were insolvent and on the verge of licence revocation, which would put the client’s money at risk.

Dr Anane Antwi also indicated that the Governor highlighted the government’s need to secure funds to repay the investors if the licenses were revoked and added that BoG was actively collaborating with the government to prepare for this possibility.

“It was at that meeting that the governor also said that they appreciate that we have problems but these institutions cannot be given support because where they have reached, they are insolvent, and their licenses must be taken away from them. But if they revoke these licenses, clients’ money will be at stake, and it must be paid to them. I think they are also looking at what happened back in 2017/2018 when they revoked, and the government stepped in to pay. So, they know that that is the same thing that must happen now.”

“So, if they are going to revoke these licences then they must get the assurance that the government has gotten money somewhere to say when you revoke, I can provide you money to pay. So that is their challenge, that they are working with the government to make some provisions for that.”

—citinewsroom