Alhaji Seidu Agongo contends that Heritage Bank could have transformed the Ghanaian banking sector by fostering unmatched competition. He criticizes the Bank of Ghana’s actions as politically motivated, expressing concerns about the fairness of revoking the bank’s license. His insights raise important questions about the banking regulatory framework and call for a reconsideration of the independence of financial institutions in Ghana.
Alhaji Seidu Agongo, former majority shareholder of Heritage Bank, believes that his bank could have revolutionized Ghana’s banking sector by introducing unparalleled competition. In a recent interview, Agongo elaborated that the bank’s success was rooted in strategic planning rather than mere appearances, stating, “Heritage Bank would have given the entire banking industry in Ghana competition they could never match.” Agongo reflected on the challenges faced by Heritage Bank and expressed disappointment over the actions of the central bank, which he claims undermined his aspirations to create a globally competitive Ghanaian bank.
Agongo pointed out the stark contrast between the international presence of Nigerian banks and the relative absence of Ghanaian banks abroad. He emphasized his intent to change this narrative by assembling a competent board of experts, including former Governor of the Bank of Ghana, Alex Ashiagbor. He questioned if such experienced individuals would have associated with a fraudulent institution, highlighting his belief in the bank’s integrity despite ongoing challenges.
A key contention for Agongo concerns the Bank of Ghana’s (BoG) decision to revoke Heritage Bank’s license. He challenged the rationale behind this decision, especially after being encouraged to merge with other banks deemed “not fit and proper.” Agongo questioned the consistency in the BoG’s actions, asking, “If I wasn’t fit and proper, why did they ask me to merge with other banks?” He criticized the central bank for conducting due diligence prior to granting the banking license and expressed bewilderment over how he could be deemed unfit within a year.
Agongo also expressed belief that the Bank of Ghana’s decisions were influenced by political pressures rather than regulatory legitimacy. He noted that the BoG operates under the influence of its appointing authority, which, in his view, compromises its independence. Despite his grievances, he claimed that if given an opportunity to meet former Bank of Ghana Governor Dr. Ernest Addison, he would express gratitude, suggesting a complicated relationship predicated on external pressures.
He believes there was a deliberate strategy to target him personally, questioning the fairness of collapsing a thriving institution due to an ongoing court case against him without any convictions. Agongo stated, “You collapse a private institution employing Ghanaians because the owner has a case in court? Does that sound fair?” This sentiment conveys his frustration with the perceived inequities in the regulatory process surrounding Heritage Bank.
Reflecting on the impact of the allegations against him, Agongo admitted to experiencing intense pressure, fearing potential imprisonment. He stated, “There came a time when even relatives and people I trusted told me I was going to jail.” However, after the Attorney General dismissed charges against him, Agongo sees this as evidence of inconsistencies in the regulations that led to the revocation of Heritage Bank’s license, underscoring the need for systemic reforms in the banking sector.
Alhaji Seidu Agongo believes his failed Heritage Bank had the potential to enhance competition in Ghana’s banking industry. He argues that the actions of the Bank of Ghana were politically motivated and questions the rationale behind collapsing his bank amid legal challenges. He remains hopeful for systemic changes in the regulatory framework, highlighting the inconsistencies he faced throughout the ordeal.
Original Source: www.ghanaweb.com
