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Business News Mon, 17 Oct 2016

GCB scandal 'lands' at Flagstaff House

The scandal at the Ghana Commercial Bank (GCB Bank) which has attracted bad press in recent times, has landed at the seat of government, the Flagstaff House.

Presidency sources told DAILY GUIDE that President John Mahama was not happy with the scandal where some Board as well as management members are said to be engaging in dirty deals at the detriment of the bank.

All is not well with the premier bank in the country following revelations that the Board Chairman, Daniel Owiredu, is allegedly presiding over a regime of uncollateralized loans, being the head of the large loans sub-committee of the bank – a development seen as complete conflict of interest.

Report says the president may dissolve the board or replace the chairman since it is reportedly facing credibility crisis following claims that it sanctioned several huge loans without the requisite collaterals.

Even though Mr Owiredu claims that the action of the Board is above board, there are indications that some individuals and corporate bodies who are clients of the bank, were given huge loans with little or no security thereby overexposing the bank.

According to sources, shareholders had sent petitions to the presidency to intervene in the ongoing crisis before it gets out of hand.

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The National Security is investigating the case and some Board members have reportedly been invited for interrogation.

One of the officers of the Corporate Banking section is said to have benefited from a customer who was given a GH¢34 million loan with inadequate security. The customer is struggling to service the loan.

After granting the loan to the bank’s customer, the officer in question was allegedly handsomely rewarded with cement business and a truck to aid the business.

Checks indicate that the bank staff quickly registered a company called Trellikon Limited, which deals in cement at Afienya Mataheko near Tema, and has allegedly been receiving supplies from the bank’s client, who is said to be a big-time cement dealer.

When DAILY GUIDE contacted the said officer, he declined to comment. “I have nothing to say,” he asserted when pressed for comment.

According to report, the officer is not the only beneficiary of the largesse. Some management as well as Board members are also involved in the scandal – with audio and pictorial evidence.

Source: dailyguideafrica.com
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