Beige Bank Receiver After Over 1,000 Loan Defaulters
The receiver of defunct Beige Bank is chasing over 1,000 loan defaulters of the bank. The names of individuals and companies have been published as the first batch of defaulters in state newspaper, Ghanaian Times.
The individuals and entities have been indebted to the bank between 2013 and 2017. Some of the companies listed include Agro Africa, Cargo Centre Limited and Boafoa SK travel.
The receiver has asked the defaulters to rectify the information.
Beige Bank, which was said to have obtained a banking licence falsely , was one of seven collapsed banks taken over by the state in last six months.
Meanwhile, the receiver has attributed the bank's high loan portfolio to inadequacies in its recovery efforts.
An inventory asset and property report filed by the receiver to the Bank of Ghana revealed that Beige Bank had total assets of GHc 494 million.
Out of the figure, GHc 282 million, representing 57% were loans and securities. According to the report, the bank gave an amount of GHc 274 million, constituting 31% of the loans to related parties.
The receiver said Beige bank did not adhere to credit administration policies and had inadequacies in recovery efforts.
The report also revealed that Unibank, on the other hand, had a total asset of GHc2.2 billion. Loans and other securities constituting 82% of the total assets of the Bank.
Most of the bank's debtors were in the construction sector owing GHc 934.3 million.
According to the receiver, Unibank's overall net liability of GHc 7.2 billion as at August 1, 2018, was accumulated losses from operations, a deterioration in the Bank's asset quality and money given to related and connected parties.
Royal Bank had an asset of GHc 376 million. Out of this, loans and other securities constituted 56% of the bank's total assets.
Staff of defunct Construction Bank owe a chunk of its loans – Report
A report on the inventory of assets and property of the five consolidated banks has revealed that Construction Bank's entire loan portfolio of GHs 620, 000 , were term loans given to nine of the company's employees.
The report, which covers the five banks, —Beige, Unibank, Construction, Sovereign and Royal banks, gives the value of assets including cash, loans, securities, property and equivalent, intangible assets and other assets.
The report was prepared by the receivers' of the five banks, KPMG.
According to the report, as at August 1, 2018, when the license of Sovereign Bank was revoked, the bank's total asset was GHC191 million.
Out of this, the bank had cash of Ghc23, 496 million. The remaining Ghc98, 370 million were loans and other securities representing 73% of the banks total assets.
The receiver attributed the bank's high non-performing loans to inconsistencies in recovery efforts.