Following an investigation into suspicious transactions that may have contributed to the collapse of UT Bank and Capital Bank, the Economic and Organised Crime Office (EOCO) with assistance from the Joint Receivers have prepared five dockets which have been submitted to the Attorney General’s office for further study and possible criminal prosecution.
According to Eric Nana Nipah, Partner at PwC, the decisions were taken in consultation with and on instructions of the Central Bank after the Joint Receivers has submitted their findings to the Banking Sector Regulator, because they as Joint Receivers have no prosecutorial powers.
Mr. Nipah said as Joint Receivers they will act as star witnesses on the various issues once proceedings commence, and that they are currently assisting the Special Investigation Team set up by the Minister of Justice and the Attorney-General to review all matters which contributed to the
2 banks’ collapse.
He added: “We have held a series of meetings with EOCO, to assist them conduct further investigations and interrogate individuals involved in irregular transactions that may have contributed to the collapse of the banks.”
Assets and loans recovery efforts
According to Mr. Nipah, the greatest value of the banks’ assets was their loan stock, which constituted approximately 90 percent of all assets belonging to the 2 banks – amounting to GH¢3.5billion as at the receivership date.
Out of this amount, he indicated that approximately GH¢400million has been realised through sales and recovery efforts – while admitting that some challenges have impacted the recoverability of loans and advances.
“Our key next-steps on debt recovery will be naming and shaming – publishing a list of recalcitrant debtors in the newspapers, enforcing security through court actions, as well as negotiating waivers for debtors willing to a settle substantial portion of outstanding loans in bullet-payments,” Mr. Nipah noted.