Parliament: Nine-member committee constituted to probe uniBank, UT Bank collapse

A nine-member committee to investigate the collapse of uniBank and UT Bank has been constituted by Speaker of Parliament Alban Bagbin.

This follows a petition presented by two majority shareholders of uniBank and UT Bank.

It called for an investigation into the conduct of the Bank of Ghana and the Ghana Stock Exchange in the revocation of the licences of UT Bank and uniBank.

READ ALSO: Speaker proposes formation of committee to probe collapse of uniBank and UT Bank

Mahama Ayariga the MP for Bawku Central officially presented the petition to the Speaker and he earlier proposed a seven-member committee.

However, on Tuesday, March 30, 2021, Mr Bagbin announced on the floor that his earlier decision has been revised.

“It is directed to consider the petitions and duly report to the House at the commencement of the Second Meeting. The Committee is composed in consultation with leadership”, the Speaker noted.

The First Deputy Speaker and Member of Parliament (MP) for Bekwai, Joseph Osei-Wusu will chair the committee.

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 Esiam), Isaac Adongo (MP, Bolagtanga Central) and Elizabeth Ofosu-Adjare (MP, Berekum).

Even before the committee will be formed, some Majority members kicked against the Parliamentary probe because of the ongoing litigation involving one of the banks.

Background

Prince Kofi Amoabeng and Dr. Kwabena Duffuor last week petitioned Parliament to investigate the conduct of the Bank of Ghana and the Ghana Stock Exchange following the revocation of the license of their respective financial institutions — UT Bank and uniBank.

Dr. Duffuor, founder of now-defunct uniBank and Mr. Amoabeng, former Chief Executive Officer of collapsed UT bank, had the licenses of their respective financial institutions revoked during the banking sector clean-up which commenced in 2017.

For UT Bank, the apex bank claimed it took the action against the institution because it was insolvent and was unable to recapitalise despite several assurances from the company’s shareholders.

The apex bank also gave similar reasons for the revocation of uniBank’s license saying the financial institution was significantly undercapitalized.

The Bank of Ghana also claimed that shareholders of uniBank used monies from the bank to acquire estate properties in their own names.

According to the central bank “uniBank’s shareholders and related parties admitted to acquiring real estate properties in their own names using the funds from the bank under questionable circumstances.”

While uniBank was merged with four other banks to form the Consolidated Bank Ghana Limited, the Bank of Ghana gave GCB permission to takeover UT bank.

Dr. Duffuor is currently litigating the collapse of his bank with the hope of getting the court to declare that, merging his bank with others to form the Consolidated bank is null and void.

Mr. Amoabeng per the petition documents said his bank’s license was revoked “without due regard to the rules of Administrative Justice guaranteed under article 23 of the 1992 Constitution.”

He is thus asking Parliament to give a directive for the restoration of the license.

Below are excerpts of Mr. Amoabeng’s requests to Parliament:
Investigates the conduct of the Bank of Ghana and the Ghana Stock Exchange for the revocation of UT Bank’s license and delisting the bank without due regard to the rules of Administrative Justice guaranteed under article 23 of the 1992 Constitution.
Directs the restoration of the banking license of UT Bank Limited by the Bank of Ghana and the remedying of the harms done to the shareholders’ property rights as a result of the conduct of the Bank of Ghana.
Gives any other directives that Parliament may deem appropriate.
Dr. Duffour is also asking the house to investigate the “take over appointment of an Official Administrator of uniBank Ghana Limited”.

He is also asking the House to remedy the “harm” done to the shareholders.

Below are excerpts of Dr. Duffuor’s demands:
Investigates the conduct of the Bank of Ghana in the takeover, the appointment of an Official Administrator of uniBank Ghana Limited, and the circumstances of the revocation of the banking license of uniBank Ghana Limited;
Directs the restoration of the banking license of uniBank Ghana Limited by the Bank of Ghana and the remedying of the harms done to the shareholders’ property rights as a result of the conduct of the Bank of Ghana.
Gives any other directives that Parliament may deem appropriate.