A Human Rights Court in Accra has dismissed the application filed by Dr Papa Kwesi Nduom, GN Savings and Loans, and another for human rights infractions exhibited by the Bank of Ghana (BoG) in revoking the entity’s license.
The Commercial Division of the Accra High Court has dismissed an application by the Founder of the defunct Capital Bank, William Ato Essien, which sought to halt his trial pending a review of the court’s ruling against a submission of no case. The court, presided over by Justice Eric Kyei-Bafffour, a Justice of the Court of Appeal sitting as High Court judge, ruled last Thursday that the application for stay of proceedings did not demonstrate any exceptional circumstance for the court of halt the trial. Essien, together with Fitzgerald Odonkor, the Managing Director of the bank, and Tetteh Netrtey, the Managing Director of MC Management Services, a company said to be owned by Essien, have been accused of conniving to steal GH₵620 million liquidity support given to the defunct Capital Bank by the Bank of Ghana (BoG). They have pleaded not guilty to all the charges of stealing, abetment of stealing, conspiracy to steal and money laundering. No Case After the prosecution brought its case to a close, lawyers for the accused persons in June this year filed a submission of no case in line with Section 173 of the Criminal and Other Offences (Procedure) Act, 1960 (Act 30). However, the court on July 8, this year, ruled that the prosecution was able to establish a prima facie case against the accused persons, and, therefore, ordered them to open their defence. On July 22, 2020, counsel for Essien, Mr Baffour Gyawu Ashia Bansu, notified the court about the stay of proceedings pending his application for review at the Court of Appeal. Mr. Bonsu, who moved the motion in court, argued that exceptional circumstances exist in his client’s application because there was a “viable chance of the success” of his clients; appeal at the appellate court. “My Lord, what we are saying is that the grounds of appeal as contained in the application raises very serious and fundamental issues to be determined by the appellate court. “We are saying that exceptional circumstances exist in this particular instance, reason being that there is a viable chance of the success of applicant’s appeal,” counsel said. Application opposed A Chief State Attorney, Ms Marina Appiah Opare, however, opposed the application and urged the court to dismiss it, urged the court to dismiss it, arguing her position on three grounds. She said the appeal had no chance of success, that the applicant had not demonstrated any exceptional circumstance to warrant the grant of stay of proceedings, and then that the application for stay of proceedings, when granted, would delay the trial by affecting the other accused persons in the case. Justice Kyei-Baffour subsequently ruled that the applicant failed to demonstrate that further hearing of the suit would gravely infringe on his rights. “Besides, reading the application together with the affidavit, and examining the whole processes, the court can only state that the chance of success of the applicant at the appellate court is very bleak, and on that score I find no justification or compelling reason to grant this application. Same is declined,” he said. The court adjourned the case to October 14, 2021, for the accused persons to open their defence. Background Capital Bank was once of the first banks that collapsed after a clean-up of financial institutions started by the BoG in 2017. On August 14, 2017, its license and that of UT Bank were revoked after the BoG declared them insolvent. The BoG allowed the state-owned GCB Bank to acquire the two banks in order to protect depositors’ funds and also to enable them to stay afloat.
IN THE MATTER OF THE BANKS AND SPECIALISED DEPOSIT-TAKING INSTITUTIONS ACT, 2016 (ACT 930) IN THE MATTER OF THE RECEIVERSHIPS OF THE 347 MICROFINANCE COMPANIES AND THE 23 SAVINGS & LOANS COMPANIES AND FINANCE HOUSE COMPANIES NOTICE TO THE GENERAL PUBLIC EXTENSION OF DEADLINE FOR SUBMISSION OF BIDS TO PURCHASE LANDED PROPERTIES, USED MOTOR VEHICLES AND CHATTELS OF THE RESOLVED COMPANIES As you may be aware, pursuant to Section 123 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), Bank of Ghana (“BoG”) on 31 May 2019 and 16 August 2019 revoked the operating licenses of 347 insolvent Microfinance Companies and 23 Savings and Loans Companies and Finance House Companies respectively. BoG in accordance with Section 123(2) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) appointed Eric Nana Nipah, a Director of PricewaterhouseCoopers Ghana Limited (“PwC”), as the Receiver for the purposes of winding down the affairs of these institutions. A key component of the Receiver’s mandate is to secure all assets of the resolved companies and maximise their realisations for the benefit of creditors. Accordingly, in my Press Statement of 9 July 2020, I informed the general public of my intention to commence the second round of the sale of the assets of the resolved companies and requested prospective buyers to submit bids for evaluation on or before 27 July 2020. In response to the numerous requests for an extension of the deadline to enable prospective bidders appropriately respond to bidding requirements, I wish to inform the general public that I have extended the deadline for the submission of bids to purchase the assets of the resolved companies by a further two weeks from the initial deadline of 27 July 2020 to close of business on Friday, 14 August 2020. All prospective buyers who wish to acquire any of the assets (i.e. landed properties, motor vehicles and chattels) of the resolved companies should submit their bids on or before close of business on Friday, 14 August 2020. Due to the current Corona Virus (Covid-19) Pandemic, all interested bidders are required to visit the Receiver’s website to view pictures and other details of these assets on offer for sale using the following link www.ghreceiverships.com. Please note that the pictures are grouped according to the current location of the assets, i.e. Kumasi, Takoradi and Accra. Prospective buyers should submit their bids in a signed and dated formal letter, scanned and attached in an email addressed to any of the following email addresses, clearly indicating the item(s) of asset(s) they are interested in and the bid amount for each asset: vehicletender.receivership@gmail.com or assettender.receivership@gmail.com. Please note that all bids which fall short of the above requirement will be rejected. All bids are to be submitted on or before close of business on Friday, 14 August 2020. Conditions and Payment Modalities: Highest bidder shall be the preferred bidder Winners will be notified and will have 48 hours to make payment or lose the opportunity. “As is where is” For further information please contact the Receiver’s duly authorised representatives: Nicholas Anum on 0243390044 and Wilfred Tackie on 0249889540. SGD ERIC NANA NIPAH
The receiver is set to pay GH₵151.8 million to 5,637 former staff of 209 defunct Specialised Deposit Taking Institutions (SDIs) as outstanding salary arrears and compensation due them before the end of this month. This follows the Bank of Ghana (BoG) making available funds to the receiver and official liquidator to fully settle employee-related claims which otherwise rank as unsecured claims in the receiverships/liquidation of the affected companies. GH₵144.3m compensation, GH₵7.5m salary arrearsThe amount is made up of GH₵144.3 million in compensation due the former employees and GH₵ 7.5million in salary arrears. GH₵24.6m for 2,036 staff of 177 Microfinance CompaniesA total of 2,036 staff of 177 Microfinance Companies (MFCs) will receive GH₵24.6 million for outstanding salary arrears and other related claims. GH₵20.3m compensation, GH₵4.3m salary arrears It comprises GH₵20.3 million compensation and GH₵4.3 million salary arrears. GH₵125.8m for 3,547 ex-staff of 21 Savings & Loans companies In addition, 3,547 former employees of 21 Savings & Loans (S&Ls) and Finance House Companies will also be paid GH₵125.8 million. GH₵122.7m compensation, GH₵3.1m salary arrears It is made up of GH₵122.7 million compensation and GH₵3.1 million salary arrears. GH₵1.4m for 54 ex-staff of 11 Microcredit CompaniesFor 11 microcredit companies (MCCs), 54 ex-staff will also receive GH₵1.4 million for outstanding salaries and compensations. GH₵1.35m compensation, GH₵0.05m salary arrearsThe compensation is GH₵1.35 million while the salary arrears is GH₵0.05 million.Full payment of all outstanding salaries post-receivership The Receiver, Mr Eric Nana Nipah, told journalists in Accra that the negotiated settlement includes full payment of all outstanding salaries post-receivership. Details of the compensation packageHe said the compensation includes three-month basic salary per each year of service, accrued outstanding leave days for 2019 to be commuted to cash, and option of first right of refusal to purchase official cars assigned to staff prior to receivership. He added that the rest are medical insurance for 2019 allowed to run till expiry; validation and payment of outstanding medical bills as at receivership date; and 30% discount on all outstanding loans. Challenges of poor records keepingOn challenges, he cited availability and access to employee data for verification and computation of exit packages as one of them. No employee records of 155 microfinance companies According to him, 155 MFCs had ceased operations prior to the receivership date and there are currently no employee records available for these MFCs. Negotiations with employees of 15 microfinance companies ongoingMr Nipah explained that negotiations and computations were currently ongoing with employees of 15 MFCs. 2 Savings and loans companies folded up prior to receivershipHe noted that two savings and loans companies had ceased operations and closed prior to receivership. 28 Microcredit companies folded up prior to receivershipHe also stated that there were no employee records for 28 microcredit companies that had ceased operations prior to revocation date. Receiver initially retained all staff willing to workThe receiver said he inherited all staff willing to work with them for an initial period of five months for MFCs and three-and-half months for S&Ls. Receiver inherited GH₵13.1 monthly payrollThe monthly payroll inherited by the receiver was approximately GH₵13.1 million for the over 5,000 staff retained. Receiver reduced monthly payroll to approximately GH₵5 millionMr Nipah said following a gradual phasing out process, the current staff strength of the receiver is approximately 2,000 with a monthly payroll of approximately GH₵5 million. The resolved companies are 347 microfinance companies, 23 savings & loans and finance house companies, and 39 microcredit companies in official liquidation.
The Attorney General has been asked by the court to give all the evidence it intends to rely on in the case against the founder of the defunct UT Bank, Mr Prince Kofi Amoabeng, who is on trial in connection with the collapse of the bank. Justice Philip Bright Mensah, a Justice of the Court of Appeal who sat as a High Court judge, ordered the AG on Thursday, 28 May 2020, to serve Mr Amoabeng and four others with all the necessary documents. The Attorney General has up to June 22 to file the disclosures and serve them on the defense team. Chief State Attorney Frances Mullen Ansah told the court on Thursday that his side was working to have the trial documents filed and served on the accused persons with the initial June 23 adjournment date in mind prior to the abridgement of time. In February, Mr Amoabeng and five others were slapped with 42 charges by the state. The charges came after an Accra Circuit Court on, Wednesday, 5 February 2020 dropped all the earlier charges against him. The five others include Johnson Pandit Asiama (2nd Deputy Governor of the Bank of Ghana (BOG) between May 2016 and December 2017), Raymond Amanfu (Head of Banking Supervision Department (BSD) at BOG from 2014 to October 2017), UT Holdings Ltd. (company which held shares in UT Bank Ghana Limited (UT).), Catherine Johnson (Head of Treasury who had also acted as the Head of Corporate Banking of UT.) and Robert Kwesi Armah (General Manager of Corporate Banking of UT). Police Prosecutor, ASP Emmanuel Nyamekye had earlier told the Circuit Court Judge, Emmanuel Essandoh that the state intended filing a fresh case against Mr Amoabeng at the High Court. To this end, he said the trial of Mr Amoabeng at the Circuit Court was no longer necessary. The businessman was arrested together with Mr Michael Nyinaku of the now-defunct Beige Bank and charged for mismanaging their banks which led to their collapse.
Embattled founder of the defunct Capital Bank, Ato Essien, is willing to refund GH¢27.5 million back to the state, his lawyers have said. Willaim Ato Essien is standing trial for allegedly collapsing the bank. The GH¢27.5 million is what the state has accused Essien of using as business promotion and which he allegedly carried in jute bags to be distributed to some people. The online news website of the state-owned Daily Graphic newspaper reports that the Counsel for Mr Essien, Baffour Gyewu Bonsu, told an Accra High Court on Thursday that his client had already paid GH¢1.4 million of the GH¢27.5 million to the state. According to the report, Mr Essien’s attorney said discussions are still ongoing with the prosecution, hence, the court should adjourn the case to enable the discussions to continue. The prosecutor, Mariana Appiah Oppong, a Chief State Attorney, confirmed to the court that lawyers for Essien had indeed informed her about their intention to pay the amount. “She, however, said the lawyers must bring a detailed proposal to the Director for Public Prosecution (DPP) and after a review the DPP would make a determination to accept it or not,” Graphic.com reports. Presiding Judge, Justice Eric Kyei-Baffour, has given Mr Essien’s attorneys one month to send the proposal to the DPP for hearing to continue on June 18, 2020. Mr Ato Essien and three others became the first to be hit with criminal trials over the banking crisis last year. All the four accused persons pleaded not guilty to the charges levelled against them. The Founder of the defunct Capital Bank, William Ato Essien; the Managing Director of the bank, Fitzgerald Odonkor, and two other persons — Tettey Nettey, the Managing Director of MC Management Services, a company said to be owned by Essien, and Kate Quartey-Papafio, a businesswoman and Managing Director of Reroy Cables Company Limited — have been put before the Accra High Court on 26 counts. They are facing charges of stealing, abetment to stealing, conspiracy to steal and money laundering.
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
Over 400 customers of the defunct GN Bank (GN Savings and Loans) have so far received their locked up funds at the Sefwi- Asawinso branch of the Consolidated Bank Ghana (CBG).
The Governor of the Bank of Ghana (BoG), Dr Ernest Addison, has revealed that the banking sector of the Ghanaian economy is now profitable after the central bank carried out the cleanup exercise. He said the banks that are operating now are conforming to best practices. “The banking is now profitable liquid and solvent owing the recapitalization exercise which resulted in the collapse of some nine local banks,” he said while speaking at the monetary policy committee (MPC) meeting in Accra on Monday, November 25. Dr Addison added: “The banking sector continues to be solvent, liquid and profitable and the latest stress tests result conducted on the sector shows resilience to shocks. The industry’s financial soundness indicators (FSIs) also continued to improve as banks adhered to sound banking practices following the reforms. “The industry’s Capital Adequacy Ratio (CAR), computed in accordance with the new Capital Requirement Directive (CRD) under the Basel II/III capital framework, stood at 18.9 per cent in October 2019, well above the 13 per cent minimum regulatory benchmark. “Asset quality has also recorded some improvements with a decline in the Non-Performing Loans (NPL) ratio to 17.3 per cent in October 2019 from 20.1 per cent in October 2018. “Adjusting for the fully provisioned loss category, the industry’s NPL ratio declined further to 8.1 per cent from 11.4 per cent over the same comparative periods. The industry’s NPL ratio is projected to further decline as banks intensify loan write-offs and recovery efforts. Increased innovation and technological changes in the payment ecosystem have supported the Bank’s objective of promoting inclusive finance. Access to finance especially among the unbanked segment of the population has improved on account of financial institutions and financial technology companies’ joint deployment of mobile-based products and services. “Currently, there are sixteen (16) FinTechs that have partnered with financial institutions in the provision of mobile-based products. In addition, the completion of the mobile money interoperability project has supported the financial inclusion drive. “Total value of transactions through the interoperability platform was GH¢95.4 billion in September 2019 compared with GH¢32.6 billion in September 2018.”