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Probe collapse of Unibank – Duffour petitions Parliament

Former Minister of Finance and Founder of defunct Unibank Ghana Limited, Dr. Kwabena Duffour has petitioned Parliament to launch a full-scale probe into circumstances that led to the collapse of the bank by the Bank of Ghana.

Among other things, Dr. Duffour is asking Parliament to: “investigate the conduct of the Bank of Ghana in the takeover, the appointment of an Official Administrator of Unibank Ghana Limited and the circumstances surrounding the revocation of the banking license of Unibank Ghana Limited.”

Also, the former Finance Minister wants the law-making body to direct the restoration of the banking license of Unibank Ghana Limited by the Bank of Ghana and the remedying of the harms done to the shareholders’ property rights as a result of the conduct of the Bank of Ghana.

The embattled businessman further urged Parliament to give any other directives that “Parliament may deem appropriate.”

Meanwhile, the founder of defunct UT Bank, Prince Kofi Amoabeng, has also petitioned Parliament seeking similar reliefs.

Banking Reforms

The Bank of Ghana in its banking sector clean-up revoked the license of nine-banks citing various reasons such as capital adequacy ratio crisis, poor corporate governance, overexposure to related parties among others.

The central bank in 2017 approved that the good assets of Capital Bank and UT bank be taken over by GCB Bank while it appointed Vish Ashiagbor of Pwc as receiver to make the most out of the remaining assets.

A year later, the Bank of Ghana revoked the licenses of five other banks – Unibank, Construction Bank, The Royal Bank, Beige Bank, and Sovereign Bank – and announced that their good assets have been merged to form Consolidated Bank, Ghana.

The central bank’s decision, however, is being contested by some of the shareholders of some banks that lost their license.

Notable among them are the shareholders of Unibank which took on the Bank of Ghana claiming their license revocation was done arbitrarily without recourse to them.

 

By: Bernard Ralph Adams | Originalfmonline.com | Ghana

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