Pay attention to GHS19bn spent to save banks

“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.” They also said “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; “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.” The Bank of Ghana (BoG) in August 2018 announced that it has revoked the licences of five banks and put them together as Consolidated Bank Ghana Limited.The banks were uniBank Ghana Limited, The Royal Bank Limited, Beige Bank Limited, Sovereign Bank Limited, and Construction Bank Limited and appointed Nii Amanor Dodoo of KPMG as the Receiver for the five banks.

Government’s decision to provide funds to the tune of GHC 19 billion for payment of depositors whose funds had been locked up in the failed banks and SDIs, helped to provide liquidity in the system and thereby helped to prevent our economy from grinding to a halt.” He added that the receivers appointed by the Bank of Ghana to wind down the affairs of the failed banks and SDIs have been tasked to realise value by repossessing and selling the remaining assets of these banks to enable the Government to recover the money spent, which has contributed to the high level of debt of the country.

“The relevant laws provide for redress for persons who feel aggrieved by the exercise of the Bank of Ghana of its statutory powers, and while there are laid down procedures prescribed by law to seek redress, and these laws are not intended to subvert the course of justice for depositors and taxpayers whose funds were used by Government to pay for depositors’ claims,” Dr Addison added.

“While the legal processes in court and at arbitration run their course, we would respectfully ask that Parliament and indeed all Ghanaians take a serious view of the GH¢ 19.0 billion Government had to provide out of taxpayers’ money to settle claims of depositors following the mismanagement and siphoning out of several billions of Ghana Cedis from the defunct institutions by their shareholders.

In his key note address at the Ghana National Chamber of Commerce Industry CEObusinessforum, Dr Addison said “We understand Parliament’s continued interest in the clean-up exercise especially given the public funds that were used to settle depositors’ claims in order to promote the stability of our financial system.

“While I am on this, I might add that running to Parliament to seek redress for the revocation of an institution’s licence, is not one of the processes laid down under law for those who feel aggrieved by a licence revocation by the Bank of Ghana..

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