Unibank to revert to Dufuor Jnr’s team after KPMG’s 6-month mandate?

The Bank of Ghana has given audit firm Klynveld Peat Marwick Goerdeler, KPMG six months within which they are expected to rationalize Unibank’s account books, assess its assets and liabilities and ensure its regulatory compliance.

The Central Bank moved in to take control of the Kwabena Dufuor II- led bank following its insolvency.

The Governor of the central bank explained at a press conference, the takeover is due to challenges facing the bank. He mentioned weak supervisory standards and weak operations as the cause of the challenges, for which reason KPMG was appointed as administrator for a six months clean up period to protect depositors funds.

The appointment by the Bank of Ghana of the official administrator is aimed at saving UniBank from imminent collapse. It will prevent potential losses to depositors and other creditors, and ensure that the financial condition of the bank does not create further risks for the entire financial system.”, the statement added.

Per the BoG directive, Executives of Unibank including Duffuor II, Ekow Nyarko Dadzie-Dennis (Chief Operating Officer), Owusu-Ansah Awere (Executive Director), Clifford Duke Mettle (Executive Director), Sylvia Assimeng-Archer (Executive Secretary) and John Collins Arthur (Executive Head of Treasury and Global Trade) will step aside as KPMG does it work.

The rest are Kwesi Nkrumah Pimpah (Director of Risk Management), Elsie Dansoa Kyereh (Executive Head of Corporate Banking) and Florence Ohene (Executive Head of Innovations and Business Execution).

But what happens after KPMG is done with its ‘clean up exercise’? Here is the Bank of Ghana’s answer as MYNEWSGH.com analysed the BoG statement:

“In line with its powers under Act 930, KPMG will ascertain the state of the bank’s assets and liabilities, and exercise a variety of powers under Act 930 to rehabilitate and return the bank to regulatory compliance and viability within a period of six months, at the end of which the bank will be returned to private ownership and management.” the BoG statement said.

Ernest Addison said the bank provided inaccurate data during the central bank’s effort to resolve the problems. The take-over comes weeks after Unibank announced it was taking over ADB.

The Bank of Ghana assured the General public that the take over, actually, was to protect their deposits and was assuring the public to be calm.

The The Bank of Ghana Governor addressing the media said:

“The Bank of Ghana takes this opportunity to reassure customers of UniBank that all deposits they have with UniBank are, and will remain, safe and that they can continue to do business at any of its branches.”

“NO DEPOSITOR OF THE BANK WILL LOSE ANY MONEY (sic)”, the written statement said.