Solve ‘non-collateral loans’ allegations internally – Nana Otuo to GCB Bank

Banking consultant, Nana Otuo Acheampong has called on the management of GCB Bank to take steps to address allegations that the bank's board has been approving several huge loans without the requisite collateral needed.

According to him, the act is likely to impact on the share price of the bank on the Ghana Stock Exchange if it goes unresolved.

Media reports had suggested that, the Board of GCB Bank led by Daniel Owiredu together with two other officials from the bank, the Credit/ Risk Manager Sam Aquah and George Fuachie, Head of Corporate have been giving out 'uncollateralized' loans to cronies, thereby putting the bank's finances in awkward positions.

The bank has since dismissed such reports.
A statement issued on the matter urged the public to “treat the allegation with the contempt that it deserved”.

Commenting on the matter to Citi Business News, Nana Otuo Acheampong, also the Head of the Osei Tutu II Centre for Executive Education and Research; described the issue is an internal one and should be addressed as such.

“This is an internal problem which can best be resolved internally; it must therefore be taken out of the public domain,” he observed.

Nana Otuo Acheampong added, “As a listed company, when such alleged information is put in the public domain, the effect on share price is negative which causes the shares to drop in its price on the stock exchange.”

Meanwhile GCB Bank says it is committed to protecting its reputation and would, therefore, file a complaint with the National Media Commission (NMC).

But sources within the bank have suggested the fact the board chairman chairs the Credit sub-committee, where loans are approved, and also the chairman of the board, which finally approves of the loans.

Meanwhile Citi business News has gathered that the Bank of Ghana has taken over the issue by causing an investigation to ascertain the full truth behind the alleged allegations that involves the board chairman and two other officials of the bank.

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By: Norvan Acquah – Hayford/citibusinessnews.com/Ghana