Month: November 2020

GH¢21 BILLION SPENT TO CLEAN UP THE FINANCIAL SECTOR – DR BAWUMIA

Vice-President Dr. Mahamudu Bawumia says the government has spent GH¢21billion to clean up the financial sector. He said 99 percent of depositors of the affected banks, microfinance and savings and loans companies had been fully settled. The Vice-President was speaking at the 12th Edition of the Nation Building Updates at the Cedi Conference Centre, Department of Economics, University of Ghana. The event was on the theme, “Future of Ghana’s Economy”. He added that the government on compassionate grounds had decided to pay up to GH¢50,000 to all customers of affected Fund Management Companies while the liquidation processes continued. Dr Bawumia informed that based on the validated claims, the partial bailout would result in 89 percent of the affected individuals being fully settled. He said the relatively strong performance of the economy, among other things, led to Ghana becoming the destination of choice for Foreign Direct Investments (FDI) in West Africa, according to the 2019 World Investment Report by UNCTAD. He said the strong economy built by the Government had provided space and ability to provide the basic needs for people, both as part of a broad, inclusive, transformational development strategy and also to withstand crises like COVID-19. “The shock of COVID-19 notwithstanding, the economy is bouncing back,” he added. The Vice-President said the government’s economic transformation agenda was on course. However, he added, in the next four years the government would build on the successes of their “One District, One Factory” and “Strategic Anchor Industries” policies to further enhance agro-processing. He said government would also enhance cocoa processing, add value to minerals and petrochemicals, promote labour-intensive and light manufacturing activities. “We will continue the development of the Aluminium, Iron and Steel industries along their entire value chains through GIADEC and GIISDEC, and leverage our Regional Hub status and as hosts for the Secretariat of the AfCFTA to expand our access to regional and continental markets,” he said. The Vice-President said those things were not happening in a vacuum, and more importantly, they did not happen by accident. He said rather it came from their overarching strategy to transform the structure of the economy to add value to the country’s agricultural and natural resources as well as careful planning and execution. He said the Akufo-Addo led government was also building the foundations for industrial development to ensure sustainable, long-term economic growth as well as create jobs.

COLLAPSED S&L FIRMS: GH¢2.3 BILLION OUT OF GH¢12 BILLION IN ASSETS RECOVERED – BOG

Governor of the Bank of Ghana (BoG) has revealed an amount of GH¢2.3 billion out of GH¢12 billion in assets have been recovered by the receiver of the defunct savings and loans companies. According to Ernest Addison, all depositors of collapsed banks that became insolvent due to the clean-up exercise undertaken by the BoG have been paid. “Some of the data that I have suggests that all depositors in the banking sector have been paid their locked-up funds except for those of related parties. In terms of recoveries, approximately GH¢2.3 billion out of the stock of GH¢12 billion in assets have been recovered and we still have a long to go.” Dr Ernest Addison made this known at the central bank’s last Monetary Policy Committee press conference for the year to announce its decision on the monetary policy rate ahead of the upcoming general elections. The central bank however has maintained its policy rate at 14.5 percent for a fourth consecutive time this year owing to economic growth indicators improving and reserve buffers remaining strong. Meanwhile in August 2019, the Bank of Ghana revoked the licenses of 23 insolvent Savings and Loans companies and Finance Houses after it had earlier on in May 2019 revoked the licenses of 347 microfinance companies. These actions were part of the financial sector clean-up where some financial institutions had become distressed. The decision, according to the central bank was in line with Section 123 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), which requires the Bank of Ghana to revoke the license of a Bank or Specialised Deposit-Taking Institution (SDI) where the Bank of Ghana determines that the institution is insolvent.

UT BANK COLLAPSE: EOCO TAKES OVER KOFI AMOABENG’S MANSION

The Economic and Organised Crime Office (EOCO) has taken over a plush house of embattled former Managing Director of defunct UT Bank, Mr. Prince Kofi Amoabeng, MyNewsGh.com has confirmed. The house according to checks by this portal is located at Kukurantumi in the East Akim District of the Eastern Region. It was built 15 years ago by the businessman and former military officer. Checks by MyNewsGh.com from EOCO reveal that the latest action was taken last Friday with the explanation it is under investigation, asking the public or assignees to keep off. A notice at the entrance of the house reads “This property is under investigation by EOCO. Keep off”. Mr. Prince Kofi Amoabeng or his lawyers have declined comment on the matter but officials of EOCO, when reached by MyNewsGh.com investigations, confirmed taking over the house but declined to give further details. Background The Attorney -General (A-G) in February this year filed new charges at the Accra High Court against Prince Kofi Amoabeng, the founder of the defunct UTBank, over the collapse of the bank. The charge sheet filed at the Accra High Court named as accused persons Dr Johnson Asiama; a former 2nd Deputy Governor of the Bank of Ghana (BoG), Raymond Amanfu; a former Head of the Banking Supervision Division (BSD) of the BoG, Catherine Johnson; Head of Treasury of the UTBank, Robert Kwesi Armah; General Manager of Corporate Banking of UT Bank and UT Holdings; the parent company of UT Bank. All five have been charged by the State with forty-two (42) counts of Fraudulent Breach of Trust, Fabrication of Evidence, Deceit of Public Officer, Fraudulently Causing Financial Loss to the Republic, Contravention of the Bank of Ghana Act and Wilfully Causing Financial Loss to the Republic.