Amoabeng, Duffour petition parliament to investigate BOG over license revocation
Founder of collapsed Unibank, Dr Kwabena Duffuor and CEO of the Defunct UT Bank, Prince Kofi Amoabeng have both petitioned Parliament to probe the conduct of the Bank of Ghana over the revocation of licences
They also want Parliament to direct the Central Bank to restore the licenses of the two collapsed firms
In a petition cited by Paakwesiasare.biz, Dr Duffuor is seeking the following reliefs from Parliament:
- i) Investigate the conduct of the Bank of Ghana in the takeover, appointment of an Official Administrator of uniBank Ghana Limited and the circumstances surrounding the revocation of the banking licence of Unibank Ghana Limited;
- ii) Direct the restoration of the banking licence 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.
On his part, Mr Amoabeng is seeking Parliament to:
- i) Investigate the conduct of the Bank of Ghana and the Ghana Stock Exchange for the revocation of UT Bank’s licence and delisting the bank without due regard to the rules of Administrative Justice guaranteed under Article 23 of the 1992 Constitution.
- ii) Direct the restoration of the banking licence of UT Bank 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.
The Central Bank in revoking the licenses of Unibank identified during the Asset Quality Review update in 2016 to be significantly undercapitalized and beyond rehabilitation.
“Shareholders, related and connected parties had taken amounts totalling GH¢3.7 billion which were neither granted through the normal credit delivery process nor reported as part of the bank’s loan portfolio.
“In addition, amounts totaling GH¢1.6 billion had been granted to shareholders, related and connected parties in the form of loans and advances without due process and in breach of relevant provisions of Act 930.
“Altogether, shareholders, related and connected parties of uniBank had taken out an amount of GH¢5.3 billion from the bank, constituting 75 percent of total assets of the bank,” the Central Bank explained back in 2018.
On UT Bank, regulator stated in a press release: “This action has become necessary due to severe impairment of their capital.”