Mahama Ayariga, Member of Parliament for Bawku Central, has accepted Parliament’s decision to create a seven-member committee to investigate the crash of uniBank and UT Bank.
On Eyewitness News, Mr. Ayariga argued that the committee’s inquiry would explain the situation.
“The very important thing is the whole idea that a bipartisan forum is being created for the examination of the conduct of a key state institution like the Central Bank so at the end of the day not only shareholders are being provided an opportunity to vindicate their case but then also the bank is being provided a platform to show that its conduct was not a bad one and that will enhance confidence in the Central bank itself.”
Two citizens, Prince Kofi Amoabeng and Dr. Kwabena Duffuor, petitioned Parliament to investigate the actions of the Bank of Ghana and the Ghana Stock Exchange in revoking UT Bank and UniBank’s licenses and delisting them from the country’s stock exchange.
The petition further requests that these banks’ licenses be restored.
The House voted to form a seven-member committee after discussing the motion.
The leadership in both the Majority and Minority caucuses have until March 31, 2021, to submit lists of MPs to serve on the bipartisan commission.
Historical context
Last week, Prince Kofi Amoabeng and Dr. Kwabena Duffuor petitioned Parliament to investigate the actions of the Bank of Ghana and the Ghana Stock Exchange in the aftermath of the suspension of their respective financial institutions’ licenses, UT Bank and uniBank.
Dr. Duffuor, founder of the now-defunct uniBank, and Mr. Amoabeng, former Chief Executive Officer of the now-defunct UT bank, had their respective financial institutions’ licenses suspended during the banking sector clean-up, which began in 2017.
The apex bank said that it took the action against UT Bank because the entity was insolvent and unwilling to recapitalize despite many guarantees from the company’s shareholders.
The apex bank cited similar grounds for revoking uniBank’s license, claiming that the financial institution was substantially undercapitalized.
Read Also: UT, uniBank case already in court, Parliament can’t intervene – Patrick Boamah
The Bank of Ghana also alleged that uniBank owners used bank funds to buy estate assets under their own names.
The central bank claims that “UniBank’s owners and associated parties confessed to owning real estate assets of their own names in dubious conditions using funds from the bank.”
While UniBank merged with four other banks to form Consolidated Bank Ghana Limited, the Bank of Ghana granted GCB permission to acquire UT Bank.
Dr. Duffuor is now litigating the failure of his bank in the expectation that the court would rule that the merger of his bank with others to form the Consolidated Bank was invalid.
According to the petition papers, Mr. Amoabeng’s bank’s license was suspended “without proper respect for the laws of Administrative Justice promised under article 23 of the 1992 Constitution.”
As a result, he is requesting that Parliament issue a directive restoring the license.
The following are quotes from Mr. Amoabeng’s written requests to Parliament:
Investigates the actions of the Bank of Ghana and the Ghana Stock Exchange in rescinding UT Bank’s license and delisting the bank without respect for the Administrative Justice laws guaranteed by Article 23 of the 1992 Constitution.
Directs the Bank of Ghana to recover UT Bank Limited’s banking license and to redress the damage done to the shareholders’ property rights as a result of the Bank of Ghana’s actions.
Provides any other directives that Parliament deems appropriate.
Dr. Duffour also requests that the House look into the “appointment of an Official Administrator of UniBank Ghana Limited.”
He also requests that the House make amends for the “damage” done to the shareholders.
The following are quotes from Dr. Duffuor’s demands:
Investigates the Bank of Ghana’s actions after the takeover, the appointment of an Official Administrator of uniBank Ghana Limited, and the circumstances surrounding the revocation of uniBank Ghana Limited’s banking license;
The Bank of Ghana is directed to restore uniBank Ghana Limited’s banking license and to redress the damage done to the shareholders’ property rights as a result of the Bank of Ghana’s actions.
Provides any other directives that Parliament deems appropriate.
Source: ATLFMNEWSROOM
