The Ghana Mineworkers’ Union (GMWU) has formally petitioned the Bank of Ghana (BoG) for the immediate release of more than GHS 380 million in locked-up funds. These significant funds belong to over 19,000 current and former mineworkers across the country. The Union seeks a swift resolution to this long-standing financial issue.
The trapped funds represent a variety of worker savings and investments. These include provident fund contributions, welfare savings, leave savings, personal investments, and severance packages. IGS Financial Services Limited previously managed these monies. The funds became inaccessible after being held in distressed Specialised Deposit-Taking Institutions (SDIs). These institutions include The Seed Funds Savings & Loans Limited (TSF) and Jislah Financial Services Limited.
This situation stems directly from the government's financial sector clean-up exercise conducted between 2017 and 2019. That exercise aimed to strengthen Ghana's banking and financial system. However, it left many depositors, including these mineworkers, with their savings inaccessible. The mining sector is a key pillar of Ghana's economy, contributing significantly to Gross Domestic Product (GDP) and foreign exchange earnings. Prolonged financial distress among its workforce could impact productivity and investor confidence in this crucial sector.
Abdul-Moomin Gbana, General Secretary of the GMWU, presented the petition to Mrs. Jessie Jacintho, Head of Legal at the Bank of Ghana. Mr. Gbana emphasized the severe hardship faced by affected workers. He noted that retirees, redundant workers, widows, and dependants are struggling to meet essential expenses. These expenses include healthcare, education, and accommodation. Mrs. Jacintho acknowledged receipt of the petition and assured the Union that their concerns would receive due consideration.
The GMWU warns that continued delays in resolving this matter could threaten industrial harmony across the mining sector. The Union has engaged the Bank of Ghana and other stakeholders since 2021 without a resolution. Failure to address these outstanding legacy issues could trigger widespread demonstrations and strikes. Such actions would have serious consequences for mineral production, government revenue, and overall investor confidence. The Union also presented the petition to the Minister of Finance for immediate action, underscoring the urgency of the situation.
The GMWU has worked to maintain calm and discourage industrial action since 2021. However, growing frustration among affected workers makes this increasingly difficult. Past instances of industrial action, such as demonstrations by Ghana Manganese Company Limited workers in 2020 and 2021, highlight the potential for unrest. Strikes involving workers of Future Global Resources and Golden Star Wassa Mine in 2021 further demonstrate this risk. The Union stresses that the mining sector's stability relies on the well-being of its workforce. Resolving these locked funds is critical for economic stability and social cohesion.
The Bank of Ghana's commitment to financial stability will be tested by this petition. The resolution of these legacy issues is vital for restoring trust in Ghana's financial system. It also ensures the welfare of a significant portion of the workforce. All stakeholders will closely monitor the government's response. This includes the Bank of Ghana, the Ministry of Finance, and the affected mineworkers. A swift and equitable solution is necessary to prevent broader economic disruption. The outcome will set a precedent for handling similar financial sector clean-up challenges.