1,200 laid-off workers of UT and Capital Bank cry for GHc40m severance package

Former employees of the defunct UT Bank and Capital Bank say they have not been paid their severance packages despite countless assurances since the August 2017 takeover by the GCB.

1,200 workers affected by the layoff are demanding their GHc40 million package negotiated by the Union of Industry, Commerce and Finance Workers (UNICOF) and the joint receivers.

The aggrieved laid-off staff want the law governing severance package payment be amended as employees are the hardest hit in the event of a takeover affecting them psychologically, emotionally and economically.

The Bank of Ghana (BoG) revoked the licence of UT Bank and Capital Bank, which were “deeply insolvent.”

The two banks’ liabilities overwhelmed their assets with Governor Addison at the time submitting significant capital deficiencies, poor corporate governance practices within the two banks, shareholders exerting undue influence on management, weak risk management systems and poor oversight responsibility by the boards of directors all led to the demise of the two banks.

By Michael Eli Dokosi