Alban Bagbin, the Speaker of Parliament, has created a nine-member committee to study a petition submitted to the House by two majority shareholders of uniBank and UT Bank.
The petition requested an investigation into the Bank of Ghana’s and the Ghana Stock Exchange’s actions in rescinding the banks’ licenses.
After the petition was formally submitted to him by Bawku Central legislator Mahama Ayariga, the Speaker suggested a seven-member commission.
Mr. Bagbin, however, suggested on the House floor on Tuesday that his earlier ruling had been amended.
The committee will be chaired by Joseph Osei-Wusu, the First Deputy Speaker and Member of Parliament (MP) for Bekwai.
“It is directed to consider the petitions and return to the House as soon as the Second Meeting starts. “The Committee was established in coordination with the leadership,” the Speaker said.
Other members are Alexander Afenyo-Markin (MP, Effutu), Joe Ghartey (MP, Essikando-Ketan), Patrick Yaw Boamah (MP, Okaikwei Central), Samuel Atta-Akyea (MP, Abuakwa South), James Klutse Avedzi (MP, Ketu North), Hon. Cassiel Ato Forson (MP, Ajumako Enyan Es (MP, Techiman North).
Opposition to Committee
Even before the committee was established, some Majority members objected to the Parliamentary investigation due to pending lawsuits involving one of the banks.
For example, Patrick Boamah, MP for Okaikoi Central, said that the petition would have no effect because the House lacks the authority to participate.
The Speaker, Alban Bagbin, was also asked by the Majority Leader, Osei Kyei-Mensa-Bonsu, to rethink the proposed inquiry into bank dissolution.
He argued that the committee’s work would jeopardize the Supreme Court’s ruling in the two cases currently before it.
However, Alban Bagbin assured in a thorough article that admitting and laying the petitions would not be a breach.
Consistent with prior parliamentary experience, I will exercise my discretion to compensate for instances in the sub judice law that may be allowed in order to avoid a clear and substantial danger of bias to a proceeding, and to ensure that a Member does not attempt to pass judgement on or prejudice the matter, he said.
Petition and collapse of banks
Former bank stakeholders Prince Kofi Amoabeng and Dr. Kwabena Duffuor petitioned Parliament to investigate the Bank of Ghana and the Ghana Stock Exchange’s actions in revoking the licenses of UT Bank and UniBank and delisting them from the country’s stock exchange.
The petition further demanded that these banks’ licenses be returned.
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 argued 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, stating that the financial institution was substantially undercapitalised.
Source: ALTFMNEWSROOM
