The Former managers of Unibank are finding ways to reverse the recent takeover of the bank by the Bank of Ghana.
The legal adviser to Unibank, Dr Dominic Ayine has said that the Bank will put the case before an independent body to seek a reversal.
"We intend to seek arbitration", Dr Ayine told Reuters following the Central Bank's takeover.
However, Unibank says the central bank did not meet the requirement to notify them before announcing the takeover.
The Bank of Ghana on Tuesday, March 20, 2018, appointed audit firm KPMG to take over management of locally owned Unibank.
According to BoG, Unibank had persistently fallen below the Cash reserve requirements and suffered cash shortfalls.
"Subsequent reviews of UniBank’s books by Bank of Ghana’s supervision teams showed that the bank had not reported the state of its loan book accurately. Consequently, by October 2017, its CAR was estimated at negative 12.5 %, making it technically insolvent. By December 2017, its CAR had dropped further to negative 24%. The bank has failed to submit its monthly returns to the Bank of Ghana for January and February 2018, and as a result, Bank of Ghana has no evidence to suggest that its CAR has been restored to the regulatory minimum of 10%.", said BoG governor, Ernest Addison.
The decision by BOG was taken under Sections 107 and 108 of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) the Bank of Ghana and follows liquidations of two other local banks, UT and Capital Bank, last year.