The Bank of Ghana (BoG) has been sued after it annulled shares of two companies in
adb that eventually scuttled their moves to hand over controlling stake to a struggling bank, unibank .
That BoG move, the plaintiffs have described as "arbitrary, capricious and inconsistent" as well as an unlawful interference in their business interests.
The Governor of BoG, Ernest Addison said Belstar and Starmount which had 24% and 11% shares respectively obtained it using funds from
Unibank was on BoG's 'intensive care unit' as its financial health deteriorated and the central bank suggested it was
In effect, BoG money was used to buy a bank which BoG was once a shareholder, a move which the central bank flagged down and explained the planned acquisition was without the regulator's knowledge and approval as required by Section 49 of the Banks and Specialised Deposit-Taking Institutions Act 2016.
Less than a month after BoG quashed the takeover, the affected shareholders have gone to the Commercial Division of the Accra High Court in an unusual battle between the regulated and the regulator.
The victims of BoG "illegal"
Read also: Unibank takes over ADB
Belstar and Starmount companies also revealed a grand scheme by
The plaintiffs say the unlawful interference by the central bank was to make it easy for the Finance Minister, Ken Ofori-Atta have his way in getting
This instruction from the Finance Minister to the Managing Director of
But the plaintiffs say this explanation is "erroneous" and "unlawful". The two plaintiffs also accused BoG of
Belstar and Starmount say BoG acted as a complainant in accusing them of using
But a complainant, they said cannot constitute itself into a prosecutor and almost immediately into a judge and 'rule' that their agreement to give up shares to
That is the work of SEC and since BoG has decided to take up that work "illegally", the plaintiffs are asking the High court to tell BoG in the
They are asking for 12 reliefs including
They also want the court to declare as unlawful, a directive from BoG to the directors appointed by the plaintiffs ordering them to cease their work as directors.
But even before the case of BoG annulment of shares belonging to the two companies is called,
The bank that had planned to take over