Business News of Wednesday, 23 June 2021
Source: www.ghanaweb.live
Running to Parliament to seek redress is not a legal process – BoG Governor to aggrieved bank owners
Dr Kwabena Duffuor is founder of UniBank and Prince Kofi Amoabeng is the owner of UT Bank
• The BoG Governor has urged all aggrieved persons to respectfully allow the pending legal processes to run its course.
•Dr Kwabena Duffuor and Prince Kofi Amoabeng earlier this year petitioned Parliament to summon the
Read full article
Governor of the Bank of Ghana, Dr. Ernest Addison has upheld that seeking redress in Parliament over the revocation of banking license by owners of defunct banks is not one of the processes laid down in law.
According to him, there are already a number of actions filed in court and at arbitration by the same persons who have petitioned Parliament to summon the central bank.
Addressing a gathering at the CEO Business Forum organised by Ghana Chamber of Commerce and Industry on Wednesday, June 23, 2021, Dr. Ernest Addison urged all aggrieved persons to respectfully allow the pending legal processes to run its course.
“The relevant laws provide for redress for persons who feel aggrieved by the exercise of the Bank of Ghana of its statutory powers, and while there are laid down procedures prescribed by law to seek redress, and these laws are not intended to subvert the course of justice for depositors and taxpayers whose funds were used by Government to pay for depositors’ claims,” he pointed.
He continued, “While I am on this, I might add that running to Parliament to seek redress for the revocation of an institution’s license, is not one of the processes laid down under law for those who feel aggrieved by a license revocation by the Bank of Ghana.”
“There are already a number of actions filed in court and at arbitration by the same persons who run to Parliament for cover, and the Bank of Ghana’s simple response to Parliament is respectfully to allow the pending legal processes to run their course,” the governor added.
Dr. Addison further admitted that asset recovery efforts by the Receivers of collapsed banks and SDIs have been a rather frustrating one.
“Over the last three years, the Receivers’ asset recovery efforts including chasing those who borrowed money and shareholders of these defunct banks and SDIs who took loans and advances from them and never paid back, has been frustrated especially through the use of the Court system.”
“Some of these Court proceedings have been delayed by shareholders who have tried to use unwarranted challenges to the statutory powers of the Bank of Ghana and the Receivers, to frustrate all attempts to hold them accountable for the mismanagement of depositor funds.
Prince Kofi Amoabeng owner of defunct UT Bank and Dr. Kwabena Duffuor, founder of UniBank in March this year petitioned the Finance Committee of Parliament to investigate the conduct of the Bank of Ghana and the Ghana Stock Exchange following the revocation of the license delisting the bank without due regard to the rules of Administrative Justice guaranteed under Article 23 of the 1992 Constitution.
The two called for the direct restoration of their banking licences to “remedy the harms done to the shareholders’ property rights as a result of the conduct of the Bank of Ghana.”
