Banking and Finance

Banking reforms: Receivers recover less than ten percent of locked GH¢16.6 billion

2 Mins read

Receivers for the nine collapsed banks, who have been chasing customers, directors and shareholders for more than GH¢16.6 billion in locked up loans, have only been able to retrieve an amount less than eight percent more than two years after the process started.

According to the governor of the central bank, the amount retrieved is about GH¢1.2 billion, which represents 7.2 percent of the total loan outstanding commitments the defunct nine banks advanced to the shareholders, directors and customers.

“As we speak today, total loans taken over by the Receivers amounted to GH¢16.56 billion, while total proceeds realized up to date are above GH¢1.2 billion. These proceeds were realized through loan repayments by customers, investments recovered, proceeds from sale of vehicles, and other income traced and recovered,” Dr. Ernest Addison last week told participants at the annual New Year School.

Dr. Addison added that the work of the receivers, Messrs Vish Ashiagbor, Eric Nana Nipah of Pwc and Nii Amanor Dodoo of KPMG, have been frustrated by legal actions which in part is to be blamed for their slower recovery rates.

“To some extent, the recovery efforts have been hampered by frivolous legal challenges mounted by some complicit persons intending to frustrate the receivers. These schemes ought not to be countenanced by the courts, as they do not inure to the benefit of the real victims of these multiple failures, the taxpayers that have had to pay for the cost of these failures, and must not be left holding the raw end of the stick in the circumstances,” the governor sought to explain.

Dr. Addison further stated details of suspicious transactions, misappropriation of funds, false accounting and misreporting have been referred to the criminal investigative authorities and the Attorney General.

He added that the bank expects that criminal behaviour, once established, will be prosecuted and perpetrators brought to book.

“We will continue to urge the law enforcement agencies and criminal investigative authorities to expedite their investigations into several suspicious transactions brought to their attention by the Receivers to facilitate prosecutions that may be necessary to ensure that justice is served,” he noted.

His remarks come after the founders of defunct UT Bank and Beige Bank last week appeared before the courts for their role in events leading to the resolution of the two banks by the central bank.

Founder of UT Bank, Prince Kofi Amoabeng and Mike Nyinaku, founder of Beige Bank, were both charged with various counts of stealing as well as money laundering.

They have both been released on bail under various conditions although hearing of their cases has been scheduled for subsequent days. ‘

Already, some key persons involved with the collapse of Capital Bank were last year arraigned before court to answer for their roles. They include Ato Essien,  Fitzgerald Odonkor, a former CEO, a board member, Kate Quartey Papafio, Tetteh Nettey among others.

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