Month: April 2020

DEFUNCT BANKS CEOs CASES GET MAY ADJOURNMENT

Banks | Matilda Akakpo | April 28, 2020 | Comment off

The Trials of owners and heads of defunct banks whose actions allegedly led to the banking crisis in recent years have been adjourned to latter parts f May due to restrictions imposed on the courts as measures to fight the Covid-19 pandemic. A total of 19 persons who were involved in the running of the banks have been charged before different division of the Accra High Court for their alleged involvements in misapplication of funds of their respective banks. UniBank Former Finance Minister Dr Kwabena Duffour, founder of defunct UniBank Ghana Limited, and eight other officers of the bank are in court from their alleged ‘dishonest’ spending of over GHS5.7 billion belonging to customers and investors of the insolvent private bank. Among the accused persons charged is the former 2nd Deputy Government of the Bank of Ghana (BoG), Dr. Johnson Pandit Asiama, under whose watch over GHS450 million was allegedly doled out to uniBank, without following laid-down procedures according to the Attorney General’s Department. Dr Duffour, Dr Asiama, Kwabena Duffour II, Ekow Nyarko Dadzi-Dennis, Elsie Dansoa Kyereh, Jeffrey Amon, Benjamin Ofori, and Kwadwo Opoku Okoh are facing a total of 68 charges, including fraudulent transaction and money laundering, but they have all pleaded not guilty to the charges. Capital Bank The Founder and Chief Executive Officer of defunct Capital Bank, Ato Essien, the bank’s former Managing Director, Fitzgerald Odonkor, together with Tetteh Nettey, a former Managing Director of MC Management Service owned by Ato Essien, as well as a businesswoman, Kate Quartye Papafio, are before the court charged with 26 counts of conspiracy to steal, stealing, and money laundering. The four are alleged to have misappropriated a total of GHS620 million liquidity support given to the bank by the BoG to enable it to service its maturing debt. The accused persons, according to the state, opened various bank accounts with Capital Bank through which the GHS675 million BoG liquidity support was transferred to, while others were carried in jute bags to Ato Essien as payment for business promotion. UT Bank Former Chief Executive Officer (CEO) of insolvent UT Bank, Prince Kofi Amoabeng, and five others have been charged for their alleged conducts, leading to depositors of the bank losing money. The businessman and Dr Johnson Pandit Asiama, as well as four of his former employees, are before the court facing some 42 charges, including causing financial loss to the state. Mr Amoabeng is alleged to have transferred the investment some 15 companies totaling GHS51,334,387.08 and $8,799,917 from UT Bank to UT Holdings, a company he owns, without the knowledge and consent of the investors. Dr Asiama, on the hand, is accused of allegedly causing financial loss to the state by approving GHS460 million liquidity support for UT Bank, without following laid-down procedures. Apart from Mr. Amoabeng and Dr Asiama, other persons charged are Raymond Amanfu, former Head of Banking Supervision Department (BSD) at BoG from 2014 to October 2017; UT Holdings Limited  (UT Holdings); Catherine Johnson, former Head of Treasury who had also acted as the Head of Corporate Banking of UT and Robert Kwesi Armah, a former General Manager of Corporate Banking of UT. Adjournment The case involving Ato Essien, and others was to begin with the prosecution led by Director of Public Prosecutions (DPP), Yvonne Atakora-Obuobisa, set to call its first witness, but the Covid-19 restrictions affected the process. The other cases are at pre-trail stages as the Office of the Attorney General is taking steps to disclose all the documents it intends to rely on for the trial. The cases have all been adjourned to late May 2020 as a result of the restrictions. Source: Daily Guide, Thursday April 28, 2020  

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CBG EXPLAINS MODALITIES FOR PAYMENT OF CASH AND BONDS TO CUSTOMERS OF COLLAPSED FINANCIAL INSTITUTIONS ON BEHALF OF THE RECEIVER

BOG | Matilda Akakpo | April 6, 2020 | Comment off

Consolidated Bank Ghana (CBG) has clarified how customers of collapsed financial institutions can access their cash and bonds, following government’s decision to pay the affected customers. It will be recalled that Government has provided a combination of cash and bonds totalling Five Billion Ghana Cedis (GHS5,000,000,000.00) to pay depositors of the collapsed financial institutions. At the direction of the Receiver of the defunct MFI & S&Ls the bank has almost concluded paying affected customers of the defunct institutions the cash component of their validated investments. For customers whose deposits exceed the cash payment threshold as advised by the Receiver, a special account has been opened to hold the balance payable. According to CBG, funds in excess of the cut-off for cash payment will be held in special holding accounts opened for the depositors and paid in equal instalments every six months over a five year period after the initial payment is made in March 2021. The Bank has established a mechanism for those depositors who wish to obtain cash ahead of the liquidation schedule to discount those expected cashflows with the bank at a very competitive rate. Managing Director of the Bank, Daniel Wilson Addo pledged the Bank’s commitment to play its role professionally and in its usual customer centric approach to business. He assured the depositors of the defunct financial institutions that the bank will soon publish the modalities involved to all concerned.  The Managing Director concluded by reminding everyone of the need to observe the various safety protocols that have been advised to ensure containment of the COVID-19 virus. He advised customers to call 0302216000 or send a mail to talktous@cbg.com.gh for all enquiries.

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RECEIVER ISSUES NOTICE ON BOND PAYMENT TO CUSTOMERS OF DEFUNCT S&LS AND MFIS WHOSE CLAIMS HAVE BEEN VALIDATED IN THE RESOLUTION PROCESS

BOG | Matilda Akakpo | April 2, 2020 | Comment off

The Receiver for the purposes of winding down the affairs of 347 Microfinance Companies and the 23 Savings & Loans And Finance House Companies wishes to notify the general public especially individuals and institutions whose claims have been validated in the resolution process that, effective Thursday 2 April 2020, Consolidated Bank Ghana Limited will be issuing a Bond Payment to depositors who have not been fully paid by the application of the cash component of Government’s funding provided for the exercise. See Press Release below:IN THE MATTER OF THE BANKS AND SPECIALISED DEPOSIT-TAKING INSTITUTIONS ACT, 2016(ACT 930) AND IN THE MATTER OF THE RECEIVERSHIPS OF 347 MICROFINANCE COMPANIES AND THE 23 SAVINGS AND LOANS AND FINANCE HOUSE COMPANIES AND NOTICE OF FULL PAYMENTS TO DEPOSITORS OF RESOLVED MICROFINANCE, AND SAVINGS AND LOANS AND FINANCE HOUSE COMPANIES WHOSE CLAIMS HAVE BEEN VALIDATED IN THE RESOLUTION PROCESS In line with Government’s commitment to protect depositors’ funds and to shore up public confidence in the financial system, Government has made available to the Receiver of the above resolved companies, as well as the Official Liquidator of the Micro Credit Companies in official liquidation,  a combination of cash and Financial Instrument totalling approximately GHS5bn to fully settle outstanding depositor claims of these institutions. As at Tuesday 31 March 2020, of the GHS1bn cash component of Government’s funding made available to the Receiver/Official Liquidator on 24 February 2020, approximately GHS920m has been disbursed, leaving an amount of approximately GHS80m to be distributed to relevant depositors of the above resolved entities and Micro Credit institutions placed in official liquidation. Notice is hereby given that with effect from Thursday 2 April 2020, Consolidated Bank Ghana Ltd (“CBG”) will be issuing a Government backed non- interest bearing  Financial Instrument worth approximately GHS4bn to depositors of the above institutions whose validated and agreed claims in the resolution exercises have not been fully extinguished by the application of the GHS1bn cash component of Government’s funding provided for this purpose. The main features of the Government backed Financial Instrument are as follows: Coupon Rate: Zero coupon rate i.e. Non-interest bearing Tenure: 5 Years Draw downs: 10 Equal instalments every six months Timing of First draw down payment: 31 March 2021. Depositors should please note that based on information to be provided by the Receiver/Official Liquidator on depositors due for payment, CBG will open Non Interest bearing Accounts for all depositors whose  validated and agreed claim(s) remain outstanding after cash payments have been made to them by the Receiver/Official Liquidator, to defray part of their deposit claims in the resolution exercises. Depositors should note further that SMS messages will be sent from the Receiver/Official Liquidator to relevant depositors, setting out their Account numbers and the amounts credited to their Non Interest bearing Accounts held at CBG. The Receiver and Official Liquidator are in discussions with CBG aimed at providing depositors the opportunity to liquidate portions of their Account balances prior to the first draw down date of 31 March 2021. Stakeholders may direct all questions or clarifications on the above to the coordinators below:Tel: 024 243 9441/ 0550000966www.ghreceiverships.comSGDERIC NANA NIPAH

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