The management of Consolidated Bank Ghana Limited (CBG) has written to all its staff of Beige bank notifying them of an impending assessment of them, which will determine whether the new bank will continue to need their services or not.
The bank said it will lay off 700 staff of the now-defunct bank.
CBG was recently formed by the Bank of Ghana when it fused together five struggling local banks, including The Beige Bank, Sovereign Bank, The Royal Bank, uniBank and The Construction Bank.
In the letter dated 1 August 2018 signed for, and on behalf of Consolidated Bank Ghana Limited by MD/CEO Daniel W. Addo, the management said: “We wish to welcome you to the Consolidated Bank Limited.
“As you are aware, the Bank of Ghana has withdrawn the operating license of your bank and the Consolidated Bank Ghana Limited has assumed the assets and liabilities of the bank.”
However, in a memo intercepted, a copy of the list of staff who will be affected in the exercise.
Below is a memo to unit heads after a management meeting
The outcome of today’s meeting with HR refers. Kindly adhere to the below sequence:
1. Place memos on the accounts of the attached exiting staff
2. Engage the Micro banking team (all Field Tellers, FSO internal and outsourced) today to discuss their exit, which is effective Monday, August 27, 2018
3. Notify them of the clearance procedure which includes reconciliation of their portfolios and submission of their assets to the HR office
4. Customers will be informed to avoid dealing with Field Bankers effective immediately and should visit the branches over the next 2 weeks ending 7 September 2018 for the reconciliation of their passbooks.
5. Each branch has Two working weeks, effective Monday, August 27, 2018, to reconcile all customer passbooks
6. Where an FT/FSO is fully cleared by the branch after the two weeks period, communication should be sent to helpdesk-hr for approval to remove the memos from their accounts.
All should duly follow the procedure above and contact HR for further clarification where needed.
Beige was accused by the Bank of Ghana of securing their banking license under false pretense.
“Beige Bank and Construction Bank were each granted provisional licenses in 2016 and launched in 2017. Subsequent investigations conducted by the Bank of Ghana, revealed that similar to the case of Sovereign Bank, both banks obtained their banking licenses under false pretenses through the use of suspicious and non-existent capital, which has resulted in a situation where their reported capital is inaccessible to them for their operations,” it said.