Prof. John Gatsi
An economist Prof. John Gatsi on March 20, 2018 has been reported in the media to have said that the Bank of Ghana’s directive to KPMG to manage indigenous bank – uniBank – was “politically motivated.”
The Central Bank, as regulators of the financial sector in March 2018, has handed over managerial powers of uniBank to an audit firm, KPMG [ads1]at least for the next six months, because the bank’s “capital adequacy ratio (CAR) has fallen below 50% of the required minimum of 10% (i.e. below 5%).”
“Under section 108 of Act 930, the Official Administrator is authorized to exercise a variety of powers to rehabilitate and return the bank to regulatory compliance within a period of six months, at the end of which the bank will be returned to private ownership and management,” a statement from BoG announcing the take over has said.
“The appointment by the Bank of Ghana of the official administrator is aimed at saving
UniBank from imminent collapse. It will prevent potential losses to depositors and other creditors, and ensure that the financial condition of the bank does not create further risks for the entire financial system,” it added.
But speaking to the media on the development, Prof. Gatsi who is also a Senior Lecturer at the University of Cape Coast (UCC), said: “This is politically motivated because of the kind of things going on between the managers of uniBank Ghana Limited and the Minister of Finance.”
According to him, the new administrators of the bank cannot save the bank within 6months considering the issues at the bank.
“I doubt if the bank can come to its feet after the six months period.”
Prof. Gatsi further averred “the situation is not a good one”, especially when management of uniBank has not officially commented on it.
Four months down the line, yesterday, KPGM in a letter to the finance ministry has told the government to pay all monies it owes the bank to save it from collapse.
A letter dated June 22, 2018 written and signed by Simon Dornoo on behalf of KPMG, to the Finance Minister said the government must pay the debts at its earliest convenience.
As at May 31, 2018, government and its agencies are said to be indebted to Unibank to the tune of 868,973,599.10.
The debt was incurred over a period spanning both the NDC and NPP government.
The list of debtors named in the letter include COCOBOD, ¢137,499,785,98, Ministry of Finance, ¢223,049,043.72, Road Fund, ¢229,434,743,62, GETFund, ¢2,023,961.10
Other debtors include BOG, BDCs government contractors etc the letter indicated.
“A timely response will in no doubt help in alleviating the current liquidity challenges facing the bank and minimize the impact the delay in settling these amounts is having on its depositors,” Dornoo said in the letter.
This development has vindicated the position of the Pro. John Gatsi as many Ghanaians especially a member of the opposition NCD believes government’s failure to pay the for NDC Minister’s uniBank is a calculated attempt to collapse the bank at the hills of the BoG’s policy on the rise in a minimum capital requirement for all banks.
Source: AwakeNewsOnline.com | Efo Korsi Senyo