Kwabena Duffour sues BoG over uniBank license revocation
Dr Kwabena Duffour, a shareholder of the defunct uniBank Ghana Limited, has initiated a fight to reclaim uniBank, which the Bank of Ghana (BoG) on August 1, 2018, collapsed along with four other banks on grounds of insolvency.
The Bank of Ghana on August 1,
The banks are BEIGE, Sovereign, Construction, uniBank and Royal.
Related article: BoG collapses 5 banks into Consolidated Bank Ghana Ltd
However, through his lawyer, Professor Raymond A. Atuguba of Atuguba and Associates,
Why BoG collapsed uniBank
When the Governor of the Bank of Ghana, Dr Ernest Addison announced the withdrawal of the license of uniBank on August 1, he explained that the government has issued a bond totaling GHc5.6 billion to cater for bad assets of the five collapsed banks.
The Governor said unibank was under
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According to the BoG, even though uniBank submitted a capital restoration plan, the plan
The BoG said an Official Administrator appointed for uniBank in March 2018 found that the bank was beyond rehabilitation.
This was because, shareholders, related and connected parties had taken 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.
In addition, amounts totaling GH¢1.6 billion had been granted to shareholders, related and connected parties in the form of loans and advances without due process and in breach of relevant provisions of Act 930.
Altogether, the BoG said shareholders, related and connected parties of uniBank had taken out an amount of GH¢5.3 billion from the bank, constituting 75 percent of total assets of the bank.
Duffuor's statement of claim
However, in the suit filed on
Other reliefs are
He is also seeking a declaration that the “good assets and liabilities of uniBank, including deposits of depositors, cannot be lawfully vested in Consolidated Bank Ghana Limited.
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Filing the suit together with Integrated Properties Limited of Top Base in Gbawe, Accra, as plaintiffs, Dr Duffuor also wants an order of injunction restraining the Bank of Ghana from "arbitrary and capriciously impairing almost the entire loan book, including debts of Government and quasi-Government institutions and shareholders’s advances in the accounts of uniBank to justify its purported revocation of the license of uniBank."
He further wants a declaration that the purported revocation of the license constitutes
He is also asking for an order of mandatory injunction requiring the Bank of Ghana to restore uniBank to private management and shareholding and any other reliefs which the court deems fit or considers just.
The statement of claim attached to the writ stated in
After the audit, the BSD, it said, downgraded the Capital Adequacy Ratio (CAR) of the Bank from 10.7
It added that further visits by officials of the BSD led to
“The purported downgrading of the financial position of uniBank by the defendant (BoG) was, in significant part, due to the defendant’s unreasonable and unjustifiable impairing even government and quasi-government exposures to uniBank, including validated payment certificates issued to contractors by
Management of the bank, it said, expressed their dissatisfaction
The BoG, it added, rather released a press statement on March 20, 2018, and announced that it had appointed an official Administrator for uniBank
‘Money owed by government’
According to the plaintiffs, the government’s indebtedness to uniBank was communicated to the Minister of Finance by the administrator on June 22, 2018.
“The Official Administrator notified the Minister of Finance of ‘overdue amounts from Government and Government – related activities “totaling Gh¢ 868,973,599 as at May 31,
The plaintiff averred that the government had an obligation to settle the debt and that, payment of the debt would “have a positive effect on the capital and balance sheet of uniBank.’’
The proposal, the statement of claim revealed, was sent to the administrator on July 30, 2018.
“The commitment expressed by the shareholders of uniBank to inject further capital into uniBank would make it wholly unnecessary for taxpayers resources to be used to capitalize uniBank,” it said.
According to the plaintiffs, the BoG, however, disregarded the proposal.