GCB Bank Sacks Hundreds of Workers With Only One Month’s Salary


Ghana Commercial Bank (GCB) has started laying off the hundreds of workers it took onboard from UTBank and Capital Bank, when the two financial institutions had their licenses revoked by the Bank of Ghana (BoG) in August 2017.

Sadly, they are being paid only a month’s basic salary, and the workers are not happy with theGCB management as well as the Akufo-Addo government saying promises made to them, had not been honoured as they were promised that they were going to be absorbed into the GCB structure.

The dismissal letters served on the workers was titled “Re: Termination of Appointment” and dated 12th February, 2019.

It stated that “We wish to advise that with immediate effect, your service to the Bank will no longer be required”, adding ” You will be paid equivalent of one (1) month’s basic salary in lieu of notice in line with Section 29(a) of our Collective Agreement and other benefits you may be entitled to per your contract of employment (less indebtedness to the Bank).

The termination letter signed by Head of Human Resources at GCB, I KojoEssel Jnr, sternly demanded the workers to hand over properties belonging to the company with immediate effect.

“You are to hand over any company property that may be in your possession including but not limited to Document, manuals computer/laptops, mobile phones , id cards, name tag, electronic access card and keys to your Line manager/ supervisor before your final departure”.

The one-page letter warned that “per a copy of this letter, the Chief Information Officer has been advised to block your access to the Bank’s Systems and Networks”.

The letter was copied to Management Director, the Deputy Managing Directors in-charge of Operations and Finance, the Head of Legal Services Department and the Chief Information Officer.

Meanwhile, insiders have told The Herald that there has been a string of dismissals of former UT Bank and Capital Bank workers by GCB.

It was further revealed that both management and staff of the state-owned GCB, not treated the former UT Bank and Capital Bank workers with respect.

GCB management and staff, this paper was told had always looked down on their new colleagues and hardly gave them briefs and other assignments to handle.

One worker, told this paper that no matter the effect and results,the workers of UT Bank and Capital Bank put into their works, they are held and referred to as those who had collapsed their bank and had joined GCB, to collapseit too.

“We were seen as second class workers and treated as such”, the worker told The Herald.

But while the UT Bank and Capital Bank were being laid off, there are reports that officials of the GCB are busily recruiting their children and other relatives into the bank secretly making those going home wonder whether the layoff was genuine.

Indeed some of the new recruits were said to be relatives of members of the ruling New Patriotic Party (NPP).

The workers were also unhappy with the one month salary package given them by the GCB and want something to be done about.

The Bank of Ghana (BoG) had in 2017 revoked the Licenses of UT Bank Ltd. and Capital Bank Ltd.

Dr. Ernest Addison, Governor, BoG, had announced at a news conference in Accra,BoG, had approved a Purchase and Assumption (P&A) transaction with GCB Bank Ltd. that transferred all deposits and selected assets of UT Bank Ltd and Capital Bank Ltd to GCB Bank Ltd.

To that effect, the main offices and branches of UT Bank and Capital Bank was be under the control of GCB bank; customers of UT Bank and Capital Bank are now customers of GCB bank; and all deposit customers will continue to have access to their funds.

Furthermore, UT Bank and Capital Bank branches and ATMs were to continue to operate as normal as GCB bank branches and ATMs and all staff, in the interim, will become staff of GCB bank and GCB Bank will negotiate the terms of their contract.

In addition, the remaining assets and liabilities of UT Bank and Capital Bank were to be realized and settled, respectively, through a receivership process to be undertaken by MessersVishAshiagbor and Eric Nana Nipah of PricewaterhouseCoopers (PwC).

This action by BoG, Dr Addison had noted that it had become necessary due to severe impairment of the capitals of UT Bank Ltd. and Capital Bank Ltd.

He explained that the two banks were heavily deficient in capital and liquidity and their continuous operation exposed the financial system to instability and depositors’ funds to risks.

He disclosed that Restructuring and Capitalization plans submitted by the two banks, upon a request by BoG, were found to be unacceptable.

Dr Addison said GCB was, therefore, selected among 3 others on the basis of purchase price, cost of funding, branches to be retained, staff to be employed and impact on the acquiring bank’s capital adequacy ratio.

He said the objective of the approval by BoG of this transaction was to strengthen Ghana’s banking sector, ensure financial stability and protect depositors’ funds, adding that the action was in line with BoG’s broad objective of positioning the financial sector to support the government’s transformation agenda.

He had re-assured the public that all customers could continue normal banking business at all UT Bank and Capital Bank facilities which were now branches of GCB bank.

Dr Addison also reassured customers of UT Bank and Capital Bank that their monies were safe and that they could continue to do business at their respective branches which were now the branches of GCB Bank.

The Banking and Specialized Deposit-Taking Institutions (SDI) Act, 2016 (Act 930) provides that undercapitalized banks be given 180 days to correct their capital position and that these banks should reach a minimum capital adequacy of 5 per cent in 90 days and 10 per cent in 180 days.

BoG, therefore,revoked the licenses of insolvent banks and banks that are likely to become insolvent.


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