Public sector workers who were receiving their salaries through the now collapsed Savings and Loans firms will now have to wait until the end of September to receive their August salaries, the Controller and Accountant General’s Department has announced.

In a circular, the department said it has had to withhold the salaries of some 1,975 public servants in order to protect them.

The circular further asked the affected workers to provide their new bank details to their heads of departments by September 11 so they could be paid by the end of that month.

Licenses of 23 Savings and Loan companies  have been withdrawn by the Bank of Ghana over liquidity challenges.

The BoG in a statement explaining the issue said “The revocation of the licences of these institutions has become necessary because they are insolvent even after a reasonable period within which the Bank of Ghana has engaged with them in the hope that they would be recapitalized by their shareholders to return them to solvency. It is the Bank of Ghana’s assessment that these institutions have no reasonable prospects of recovery, and that their continued existence poses severe risks to the stability of the financial system and to the interests of their depositors.”

Source: Ghana/Starrfm.com.gh/103.5FM