The Institute of Chartered Accountants, Ghana has launched investigations into the role of Auditors in the collapse of seven banks with the last twelve months.

In a statement, the Institute said appropriate sanctions will be taken against Auditors and Auditing firms if they are found culpable.

The Bank of Ghana last week revoked the licenses of five universal banks, namely, Royal Bank, Construction Bank, Sovereign Bank, Unibank and BEIGE Bank. According to the central bank, the action was taken due to the inability of some of the banks to meet existing minimum capital requirement.

Some of the troubled banks also faced liquidity issues while others obtained their licences through dubious means.

The banks have been merged to form the Consolidated Bank of Ghana (CBG) Limited.

The Central Bank in 2017, granted GCB Bank the permission to take over the assets of UT Bank and Capital Bank over the two bank’s inability to sustain their operations due to low insolvency.

Read below the full statement

The Council of the Institute of Chartered Accountants, Ghana has noted with great concern current development in the banking industry with particular reference to the collapse of seven banks.

The questions many people, accountants and non accountants are asking are:

  1. Didn’t the External Auditors of these banks pick up the growing concern difficulty signals during the auditing process.
  2. Does it amount to inefficiency or negligence
  3. Is there any disciplinary action the Institute can apply to these auditing firms

The Council of the Institute of Chartered Accountants, Ghana wishes to assure the general public that the Institute has a formalized procedure to handle complaints against its members.

The Professional Standards and Ethics Committee of the Institute in line with its mandate has initiated the necessary inquiries on the matter and an appropriate action will be taken if merit to the complaint is established.

The Council appreciates the concerns of the public and will do everything possible to safeguard the public interest.