uniBank shareholders bought estates with bank’s monies

uniBank shareholders bought estates with bank’s monies

- The Bank of Ghana has released more 'dumning' report on shareholders of uniBank

- The BoG has revealed that shareholders of uniBank used the bank's money in buying private properties

It is emerging that shareholders of uniBank Ghana Limited used company funds to acquire estate properties in their own names.

According to the Central Bank, “uniBank’s shareholders and related parties have admitted to acquiring several real estate properties in their own names using the monies they took from the bank under questionable circumstances”.

According to Citinewsroom.com report, the governor of the Bank of Ghana, Dr. Ernest Addison, made the disclosure after revoking the licenses of five banks, uniBank, Sovereign Bank, Construction Bank, Royal Bank, and Beige Bank.

uniBank shareholders bought estates with bank’s monies
Kwabena Duffuor Jnr, uniBank boss (Starrfmonline.com)

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Dr. Addison declared that the five banks have been consolidated into one, name Consolidated Bank Ghana Limited.

Giving more details on the rot that went on in uniBank, Dr. Addison stated that Promises by the shareholders and related parties to refund the monies by mid-July 2018 and legally transfer title to assets acquired back to uniBank failed to materialize.

“Based on the Bank of Ghana’s review of KPMG’s assessment of the financial condition of uniBank, the BoG has concluded that uniBank is insolvent and has no reasonable prospect of rehabilitation or a reasonably credible path to viability,” Citinesroom.com

In addition, the governor disclosed that uniBank granted a loan of 61 million cedis as initial minimum paid-up capital for Construction Bank contrary to the Bank of Ghana’s regulations.

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Despite this, the monies that were advanced by uniBank to Construction Bank remains inaccessible.

Dr. Addison stated that uniBank gave out amounts totaling GH¢1.6 billion to shareholders and related parties in the form of loans and advances without due process and in breach of relevant provisions of the Bank of Ghana Act 930.

“In addition, these shareholders and related parties had also been given amounts totaling GH¢3.7 billion which were neither granted through the normal credit delivery process nor reported as part of the bank’s loan portfolio. They were also not secured with collateral, and attracted no interest income for uniBank,” the BoG boss said.

He pointed out altogether, shareholders and related parties of uniBank had taken out an amount of GH¢5.3 billion, constituting 75 percent of total assets of the bank; out of total customer deposits of GH¢4.3 billion, GH¢2.3 billion was not disclosed to the Bank of Ghana.

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Source: YEN.com.gh

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