Bagbin sets up 9-member Committee to probe UT Bank, uniBank collapse

The Speaker of Parliament on the back of a petition he received from majority shareholders of collapsed uniBank and UT Bank has constituted a nine-member committee to look into the petition.

The petitioners asked Parliament to investigate the conduct of the Bank of Ghana and the Ghana Stock Exchange in the revocation of their operating licenses.

The Speaker after ruling he was going to form a seven-member committee to look into the matter, reversed his decision on Tuesday announcing that the petition presented to him by Bawku Central MP, Mahama Ayariga would be looked into by a nine-member committee.

The Speaker, Alban Sumana Kingsford Bagbin whiles announcing the formation of the committee indicated that the panel will be chaired by the First Deputy Speaker and Member of Parliament for Bekwai, Joseph Osei-Owusu.

“It is directed to consider the petitions and duly report to the House at the commencement of the Second Meeting. The Committee is composed in consultation with leadership,” the Speaker stated.

The remaining members of the committee as announced by the Speaker include Alexander Afenyo- Markin (MP, Effutu), Joe Ghartey (MP, Essikando-Ketan), Patrick Yaw Boamah (MP, Okaikwei Central), Samuel Atta-Akyea (MP, Abuakwa South), James Klutse Avedzi (MP, Ketu North), Hon. Cassiel Ato Forson (MP, Ajumako Enyan Esiam), Isaac Adongo (MP, Bolagtanga Central) and Elizabeth Ofosu-Adjare (MP, Techiman North).

Members of the Majority caucus had raised concerns over the panel before the formal formation.

According to Okaikoi Central Member of Parliament, Patrick Boamah the petition stands to achieve nothing as Parliament has no power to intervene in the matter.

The Majority Leader, Osei Kyei-Mensah-Bonsu on the other hand argued that the work of the committee was going to impede the adjudication of two separate cases pending before the Supreme Court.

The Majority Leader thus called on the Speaker to reconsider the scheduled investigation into the dissolution of the banks by parliament.

The Speaker however based on a report assured that the petition being admitted by the house will not be a contravention.

"Consistent with prior parliamentary practice, I may exercise my discretion to provide for occasions in the sub judice rule may be permitted in order to prevent a real and substantial danger of prejudice to a proceeding, and to ensure that a Member, in making reference to that matter does not seek to pass judgment on or prejudice the matter, he said.

Background

Majority shareholders of the two collapsed private banks, Prince Kofi Amoabeng and Dr. Kwabena Duffuor petitioned Parliament to investigate the conduct of the Bank of Ghana and the Ghana Stock Exchange in the revocation of the licenses of UT Bank as well as uniBank and delisting them from the country’s stock exchange.

The petitioners are also seeking the restoration of the revoked licenses.

In 2017, Dr Duffuor’s and Mr. Amoabeng, former Chief Executive Officer of collapsed UT bank, had the licenses of their respective financial institutions revoked during the banking sector clean-up.

The Bank of Ghana said at the time that UT Bank had become insolvent and was unable to recapitalize despite several assurances from the company’s shareholders.

For uniBank, the Central Bank said the bank was significantly undercapitalised.