The Office of the Special Prosecutor (OSP) has turned its attention to one of Ghana’s most controversial economic crises in recent history — the colla
The Office of the Special Prosecutor (OSP) has turned its attention to one of Ghana’s most controversial economic crises in recent history — the collapse of local banks and financial institutions during the 2017–2019 financial sector clean-up.
The OSP has confirmed that it is actively investigating officials of the Bank of Ghana (BoG), together with directors of the failed banks and other financial institutions, over alleged corruption and corruption-related offences.
The probe, which was highlighted in the OSP’s 2025 Half-Year Report, covers potential misconduct by central bank regulators, bank executives, specialised deposit-taking institutions, and financial holding companies.
The investigation is expected to revisit questions that have lingered since the collapse of nine universal banks and hundreds of microfinance institutions, which left thousands of depositors stranded and caused significant job losses.
The Banking Clean-up Exercise
The crisis traces back to September 2017, when the BoG raised the minimum capital requirement for banks from GH¢120 million to GH¢400 million. While the central bank argued that the policy was necessary to strengthen the sector and weed out weak institutions, it triggered the collapse of several indigenous banks that could not meet the new benchmark.
Between 2017 and 2019, Ghana witnessed the closure of nine universal banks — including UT Bank, Capital Bank, The Royal Bank, The Beige Bank, Premium Bank, Heritage Bank, Construction Bank, The Sovereign Bank, and UniBank.
The exercise also affected other tiers of the financial sector, with 23 savings and loans companies, 347 microfinance institutions, 39 finance houses, and 53 fund management firms shut down.
The state subsequently spent billions of cedis in a bailout programme to protect depositors’ funds, but critics argue that many of the banks could have been salvaged with proper regulatory support.
Debate Over Accountability
Since the clean-up, public opinion has been divided. Analysts such as Joe Jackson, CEO of Dalex Finance, have repeatedly insisted that directors of the failed banks must not only be prosecuted but also compelled to refund misappropriated funds.
“I stand firmly with those who believe we should be recovering the monies. But let’s not turn around and make these people role models. They should also be denied appointments,” Jackson said recently on TV3’s Key Points.
On the other hand, legal experts, including Austin Brako-Powers, argue that financial recovery alone is not enough. He has criticised the government’s reliance on nolle prosequi to discontinue trials, warning that it risks normalising corruption.
Controversy Over UniBank Case
The issue of accountability came to a head in July 2025, when Attorney-General Dr. Dominic Akuritinga Ayine entered a nolle prosequi in the case of The Republic v. Kwabena Duffuor & 7 Others, which involved former directors of UniBank.
According to Dr. Ayine, the decision was guided by a state policy to prioritise recovery over prolonged prosecution.
He explained that the directors had refunded 60% of the state’s estimated losses, a threshold set by the government for considering the discontinuation of trials.
While the Attorney-General insisted the move was in the national interest, civil society organisations such as IMANI Africa have disputed the accuracy of the recovery figures and questioned whether justice is being served.
OSP Steps In
The OSP’s new investigation marks a significant development. Unlike the Attorney-General’s approach, which has focused on recovery, the Special Prosecutor is empowered to pursue corruption-related offences — including bribery, money laundering, and abuse of office — which may have contributed to the financial sector’s collapse.
By probing officials of the BoG, the OSP is also broadening accountability beyond bank directors to include the regulators who supervised (or failed to supervise) the sector.
This could prove critical, given longstanding claims that regulatory negligence and political interference played a role in the crisis.
Implications For The Financial System
The financial sector clean-up has been one of the most contentious legacies of the economic management in the last decade. Supporters credit it with restoring stability, while critics highlight the mass job losses, destroyed local ownership, and the heavy fiscal cost borne by taxpayers.
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