Financial analyst, Daniel Anim, has described the action taken by the Consolidated Bank Ghana (CBG) Limited to lay off over 400 staff of the now-defunct Beige Bank as a rushed decision.
According to him, the decision will further increase the pressure on the Ghanaian economy.
Mr. Anim averse that a takeover condition affords several challenges to workers of the previously existing bank thus calling on the government to prepare a suitable compensation plan should it finally sort to a retrenchment in the workforce.
“The quantum is quite alarming and that’s the challenge now because an economy where government is trying to create more job opportunities for the citizens and we having 400 plus going home is quite a challenge. I’m sure most of the workers are bread winners of their families and by extension will affect other people.”
Mr. Daniel Anim further alluded to the fact that a change in office comes with newer organizational structure and philosophies but does not undermine the need for training workers who have been taken over.
“…I will advise that as a new organization where you wanted to introduce a new organizational culture, new value system or strategy then you should have provided a training opportunity for the existing ones so that those who will not be able to flip into the new system then you will find a way of exiting them” he said
The Bank of Ghana on August 1, 2018, collapsed five banks into Consolidated Bank Ghana Ltd.
The affected banks are the Royal Bank, Beige Bank, Sovereign Bank Ltd., Construction Bank and the uniBank Ghana Ltd.
Governor of the Central bank who revoked the licenses of these banks described the current merger as one stemming from liquidity challenges as well as false operational licenses acquired by some of these banks.
On the specifics, the governor revealed that the Royal Bank had high non-performing loans while sovereign Bank obtained its license by false pretense. He also indicated that Unibank and Construction Bank were beyond rehabilitation since they were undercapitalized.
The government however issued a GHc5.6 billion bond to cover the assets of the four banks and thus appointed Mr. Nii Amanor Dodoo of KPMG as the receiver of the five banks.
This particular move by the Central bank has triggered numerous debates from several stakeholders within the business industry. Others are of the view that going forward some indigenous banks may also join the plight.
Story by: Yohaness Awunyo Kuvor Kofi