GCB Bank sacks about 450 UT, Capital Bank workers

Business News of Wednesday, 4 October 2017

Source: citifmonline.com

2017-10-04

GCB Bank has terminated the appointments of about 450 workers of defunct Capital and UT banks

Citi Business News has gathered that GCB Bank has terminated the appointments of about 450 workers of defunct Capital and UT banks.

Workers of the two banks were pulled into the work force of GCB Bank following the revocation of the license of the two banks by the Bank of Ghana(BoG).

Persons familiar with the development say the workers were handed the termination letters yesterday in addition with a month’s pay.

Sources at the bank say about 80 of the dismissed workers are from Capital Bank while the rest are from UT Bank.

The development comes after the receiver of the takeover-PricewaterhouseCoopers last month disengaged the services of all 1,356 staff of the two banks.

GCB had earlier announced it will lay off some of the staff of the two banks after they go through an assessment as part of the integration process.

The Managing Director of the GCB Bank, Mr. Ray Sowah during the takeover stated that the bank will undertake periodic assessments to determine the restructuring.

Background

In August 2017, the BoG gave GCB Bank Ltd the green light to acquire two local banks UT and Capital bank.

A statement from the central bank and copied to Citi Business News at the time said, ‘The Bank of Ghana has approved a Purchase and Assumption transaction with GCB Bank Ltd that transfers all deposits and selected assets of UT Bank Ltd and Capital Bank Ltd to GCB Bank Ltd’.

According to the central bank, it also ‘revoked the Licences of UT Bank Ltd and Capital Bank Ltd. The action became necessary due to severe impairment of their capital’.

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