Former workers of the defunct Capital Bank and UT Bank are demanding their exit package seven months after their employers were put under receivership.
In a joint press statement issued yesterday and signed by their spokespersons – Philip Yawson, Francis Banson, Stephen Ernest Aning, Emmanuel Barnoh and Raymond Addai-Danquah – the ex-staff of the banks noted that the majority of the former workers of defunct Capital Bank, especially those who were not absorbed by GCB Bank and are currently unemployed, have not been paid their Provident Fund (PF) and End of Service Benefit (ESB) under the Tier 3 Pension Scheme.
“We will like to reiterate for the records that the PF and ESB were funds contributed from our own salaries on monthly basis.”
The workers also reacted to a comment of the Receiver – Vish Ashiagbor, Country Senior Partner for PricewaterhouseCoopers (PwC) on Citibusinessnews.com on April 12, 2018 that “our PFs and ESBs have not been paid because we pledged them against staff loans.”
Setting the records
“We, the former staff of ex-Capital Bank, would like to put it on record that we have not signed any such pledged form, neither was such a clause embedded in any loan offer letter to staff.
“While the Purchase and Assumption Transaction was conducted to ensure that no single customer lost his or her deposit, the plight of the staff whose lives and livelihood were turned upside down overnight is deemed surplus to requirements. It seems that our financial, social and psychological wellbeing is irrelevant in the scheme of things and we have been left worse off through no fault of ours.”
Losses
They also said that apart from the obvious financial loss and its attendant difficulties, they have suffered emotional losses, social losses and psychological losses due to the major embarrassment they have endured among their friends, families and peers.
“The banking industry is a very stressful environment and an integral part of Ghana’s economy and we believe that despite the many years of our lives we have invested in the industry, we have just been thrown to the wolves with no one to speak for us.
Appeal to government
Making an appeal to government, Bank of Ghana (BoG), Parliament and other relevant stakeholders, they said it appeared the laws governing liquidation deserve a critical rethink “because the current status leaves employees very vulnerable and dispensable. It’s basically a case of institutional might versus employee vulnerability.”
Background
On 14th August, 2017, former workers of the defunct UT and Capital Banks were hit with the shocking news that in line with Section 123 of the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930), the Bank of Ghana had revoked the licences of their respective banks due to severe impairment of capital and appointed Messrs Vish Ashiagbor and Eric Nana Nipah, both directors of PricewaterhouseCoopers (Ghana) Limited, as Joint Receivers for the purpose of winding down the affairs of the two banks.
GCB Bank was authorized by Bank of Ghana to take over the management of the defunct banks under a Purchase and Assumption Agreement.
As a result of the action, the affected employees appointed UNICOF to negotiate an Exit Package on behalf of staff.
Per the Joint Receivers’ letter dated 15th January, 2018, an agreement was reached with UNICOF to provide all staff of the defunct banks with exit package.
By Samuel Boadi