UT Bank collapse: Ibrahim Mahama denies blame over loan default

UT Bank collapse: Ibrahim Mahama denies blame over loan default

- Lawyers for Ibrahim Mahama have dismissed reports suggesting that his transactions with the defunct UT Bank contributed to the collapse of the bank

- According to Mr Reindorf Twumasi Ankrah, the report is skewed and does not reflect the facts of events

- A leaked report allegedly prepared by the Central Bank attributes the collapse of UT bank, among others, to the refusal of Mr. Mahama to pay back a GHC 302 million loan he took from the firm

The CEO of Engineers and Planners (E&P), Ibrahim Mahama, has denied being responsible for the collapse of the defunct UT Bank, after being alleged to have defaulted in payments of loans he took.

The businessman was reportedly granted a GH¢302,000,000 loan facility, through four companies believed to be owned by him.

This was contained in a detailed investigative report which sought to uncover events which led to the collapse of the UT and Capital Banks over a year ago.

UT Bank collapse: Ibrahim Mahama denies blame over loan default
brahim Mahama denies blame over loan default. Photo Credit: Myjoyonline.com

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However, Ibrahim Mahama has strongly refuted claims that he contributed to the collapse of the UT bank by defaulting in payment of the loan he took.

According to his lawyer, Reindorf Twumasi, at the time of the revocation of the license of UT bank, they were not in default of payment.

He, therefore, described assertions that Engineers and Planners CEO defaulted in payment as “inaccurate”.

Under the Banks and Specialised Deposit Taking Institutions Act 930, which is the Act upon which the Bank of Ghana revoked the silence of UT, there is a provision to the effect that upon the revocation of the license of a bank, all liabilities due the bank become due and payable. It doesn’t matter whether your facility was due in accordance with the terms or not; once there has been a revocation and there has been the appointment of a receiver, your liability becomes due and payable,” Mr. Twumasi said.

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He added: “At the time the license was revoked, my clients were not in default but the basis for the claim for payment now is because of an operation of law.”

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Source: YEN.com.gh

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K. Effah Evans Effah is a holder of a BA Diploma in Psychology and Linguistics from BA, Psychology and Linguistics. He’s a former Yen.com.gh editor who covered current affairs news and stories about Ghana. Before Yen, he worked for Citi FM and Ringier Ghana.