GFA to chase Ghana Commercial Bank over league sponsorship money

Ghana Commercial Bank will inherit Capital Bank's debt owed the Ghana Football Association after acquiring the distressed banking institution.

On Monday, the Central Bank announced it has approved a Purchase and Assumption transaction with Ghana Commercial Bank Limited that transfers all deposits and selected assets of UT Bank Ltd and Capital Bank Ltd to GCB Bank Ltd.

The statement explained that it has revoked the banking licences of the two banks as a result of severe impairment of their capital.

"The remaining assets and liabilities will be realised and settled respectively through a receivership process to be undertaken by Messers Vish Ashiagbor and Eric Nana Nipah of PricewaterhouseCoopers (PwC),'' a portion of the statement read.

The distressed indigenous bank, then First Capital Plus Bank, signed a five-year sponsorship deal as headline sponsors of the Ghana Premier League in 2014.

But after one-and-a-half years they took a unilateral to terminate the contract.

Capital Bank cited internal restructuring as the main reason for their decision to pull out.

Last year, the Ghana Football Associaton decided to take legal action against Capital Bank for breach of contract.