BOG takes measures to curb frauds at rural banks 

Toase (Ashanti Region) 30 Dec '99

The Bank of Ghana (BOG) has attributed most financial irregularities at rural banks to misconduct on the part of some board members, managers and staff who exploit weak internal control systems in the banks.

Mr Joseph Boye Clottey, Chief Manager and deputy head of the Banking Supervision of the BOG, disclosed this at the 15th annual general meeting of the Atwima-Mponua Rural Bank at Toase in Ashanti.

He said in order to minimise these lapses, the BOG has made it a policy for boards of rural banks to include persons with knowledge and experience in accounting, banking, economics and law.

BOG has also created a pool of managers to relieve rural bank managers who are on leave.

Mr Clottey explained that the BOG has noticed that fraud and malpractices occur where managers have continuously remained at post without taking their annual leave.

He stressed that the BOG is committed to the development and growth of rural banks with the view to using them to stimulate economic development in rural communities.

He warned that the BOG would not hesitate to close down any rural bank that becomes distressed as a result of malpractices.

Mr Clottey said adequate security measures are being adopted to protect assets of the banks from activities of armed thugs.

"The vigilance of all inhabitants, especially the communities which the banks serve, are needed to expose the armed robbers to law enforcement agencies.

Baffour Osei-Wusu, chairman of the board of directors of the bank, said the bank made 53 million cedis profit last year.

He said the total assets of the bank increased from three billion cedis to 3.8 billion cedis while its deposits rose from 1.7 million cedis to 2.3 million cedis.

Baffour Osei-Wusu said the bank purchased treasury bills worth 1.5 billion cedis but said the bank could not pay any dividends this year because it is undertaking the construction of its own offices.

The bank gave 15 million cedis as soft loans to ginger growers in its catchment area, and assisted Offinso, Mankranso and Atwima districts during the farmers day celebration.

GRi../