Seidu Agongo Accuses Former BoG Governor of Political Motive in Heritage Bank Collapse
Businessman Seidu Agongo has alleged that the collapse of Heritage Bank Limited (HBL) was politically motivated and orchestrated by the immediate past Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, under the influence of the then-government.
In a candid interview following the discontinuation of his financial loss case alongside former COCOBOD CEO Dr. Stephen Opuni, Mr. Agongo claimed the central bank was not truly independent, arguing that appointees often act on the directives of those who appoint them.
“The basic concept of appointments makes the BoG not independent,” he stated. “Whoever appoints you holds the key to your actions.”
Disputed ‘Not Fit and Proper’ Tag
The BoG revoked HBL’s licence on January 4, 2019, citing concerns over the source of Mr. Agongo’s capital, which allegedly came from fraudulent COCOBOD contracts. Dr. Addison defended the decision at the time, asserting that the central bank does not require a court ruling to determine a person’s fitness to own a bank.
However, Mr. Agongo strongly refuted this rationale, calling it “insulting” and inconsistent. “How do you tell a businessman who started at 16, who has built companies across multiple sectors, that he is ‘not fit and proper’?” he questioned. “If that were true, why did they ask my bank to merge with others?”
Political Targeting Alleged
Mr. Agongo maintained that his prosecution in the COCOBOD case had no bearing on his bank’s licence and that the BoG conducted extensive due diligence before granting the licence. “They checked my finances, my background—even my secondary school records. At what point did I suddenly become ‘not fit and proper’? At the change of government?” he asked.
Expressing his disappointment, he argued that the revocation of HBL’s licence stifled his vision of creating a Ghanaian banking giant capable of competing internationally. “Look at Nigerian banks—they are everywhere. Can you name a Ghanaian bank that has expanded beyond our borders?”
The Aftermath of Heritage Bank’s Collapse
Following the revocation, HBL was merged into the Consolidated Bank Ghana Limited (CBG), which had been formed in August 2018 to absorb five collapsed banks: The Royal Bank, The Beige Bank, The Construction Bank, Sovereign Bank, and uniBank. HBL and Premium Bank were later added.
Despite the setback, Mr. Agongo insisted he bore no personal bitterness but was disappointed by the impact on employees and the banking sector. “Heritage Bank would have given all Ghanaian banks competition they couldn’t match,” he asserted.
The businessman, who oversees the Zeera Group of Companies, remains adamant that the BoG’s actions damaged investor confidence and stifled private sector growth. “When we do this, we kill the soul of our economy,” he lamented.
Mr. Agongo’s remarks add to ongoing debates about the independence of regulatory institutions and the broader implications of Ghana’s banking sector cleanup.
