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Speaker directs formation of 7-member Committee to probe uniBank collapse

Bagbin Alban Sumana Kingsford Speaker Of Parliament Speaker of Parliament, Alban Sumana Kingsford Bagbin

Tue, 23 Mar 2021 Source: kasapafmonline.com

The Speaker of Parliament, Alban Bagbin has directed the setting up of a 7-member Committee to investigate circumstances that led to the revocation of license for uniBank and UT bank following a petition by former two majority shareholders of the two defunct banks.

This comes after the petitions were laid on the floor by MP for Bawku Central, Mahama Ayariga on Tuesday, March 23, 2021.

The House after debating the petition agreed to form a seven-member committee.

The committee is expected to start work when the House breaks by the end of March and report back when it’s done with its work.

The House is expected to vote on the recommendations of the report including whether or not the licenses of the two banks must be restored.

In a petition to Parliament, Dr Duffuor is asking Ghana’s law-making body to:

(i): 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:

(ii): Direct the restoration of the banking license of uniBank Ghana Limited by the Bank of Ghana and the remedying of the harms done the shareholders’ property rights as a result of the conduct of the Bank of Ghana;

(iii) Give any other directives that Parliament may deem appropriate.

UniBank Collapse

uniBank went into official administration on March 20, 2018, and was eventually collapsed by the Bank of Ghana on August 1, 2018.

The local bank was one of five banks merged by the Bank of Ghana (BoG) into the Consolidated Bank Ghana Limited.

Official Administrator, KPMG, in the course of its audit discovered that about GHS5.7 billion was owed by shareholders of uniBank as of March 20, 2018.

The GHS5.7 billion was the focus of a previous suit by Nii Amanor Dodoo who was acting as the Receiver.

Among other things, the bank’s interest income and other sources of income were said to be insufficient to cover the associated cost of funds of underlying borrowings and liabilities, as well as overheads of about GHS0.31 billion per annum.

These claims have, however, been challenged by the bank’s directors and Dr. Duffuor also sued to get the court to declare the license for the Consolidated Bank null and void.

Source: kasapafmonline.com
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