Hundreds of defunct UT, Capital Bank staff sacked; GCB remains tight-lipped

Business News of Wednesday, 4 October 2017

Source: Myjoyonline.com

2017-10-04

GCB takes over UT and Capital banks

It has emerged that hundreds of former workers of the now defunct UT Bank and Capital Bank have started receiving letters notifying them of termination of their appointments.

Myjoyonline.com sources at GCB Bank Ltd, the new owner of the two banks, say out of the over 1,300 combined staff of the two defunct banks, about 600 workers will be retained.

It still remains unclear why GCB Bank has failed to issue an official statement on the matter. Initial reports about the mass termination had quoted 1,000 staff, however, that has since been refuted by GCB Bank.

The sources explain that the termination of appointments was inevitable because GCB Bank already has branches in the same catchment areas that the two defunct banks also had branches.

Myjoyonline.com understands that GCB Bank intends to retain clerical and top management staff of the collapsed banks.

The sources say the new owner of the two defunct banks has its standards for recruitment and it intends to strictly adhere to them in the appointment of staff from the two collapsed bank.

The central bank approved the takeover of Capital Bank and UT Bank by the GCB Bank on August 14, setting the uneasy tone for the unavoidable termination of appointment.

“Bank of Ghana has revoked the Licenses of UT Bank Ltd and Capital Bank Ltd. This action has become necessary due to severe impairment of their capital.

“The remaining assets and liabilities will be realised and settled respectively through a receivership process to be undertaken by Messers Vish Ashiagbor and Eric Nana Nipah of PricewaterhouseCoopers (PwC),” the Bank of Ghana statement had said.

The sources say with regard to their salary arrears, wages, leave, severance pay and other entitlements will be dealt with in accordance with the provisions of the Labour Act, 2003 (Act 651) and the Banks and Specialised Deposit Taking Institutions Act, 2016 (Act 930).

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