Amoabeng's UT Bank Should Have Been Given A Bailout: The 'Too Big To Fail' Local Banks

Feature Article Amoabengs UT Bank Should Have Been Given A Bailout: The Too Big To Fail Local Banks

SUN, 26 JAN 2020

The Bank of Ghana on August 14, 2017, announced that it had revoked the license of UT Bank and ordered GCB Bank to take over its operation because it had severe capital impairment.

Provisional figures released by the central bank showed the total liability of UT Bank stood at GH¢850 million while its total asset was pegged at GH¢112 million.
Today, the founder of UT Group, Prince Kofi Amoabeng has been put before an Accra circuit court for his role in the collapse of his bank in 2017 and he is facing charges of stealing and money laundering. Citi News' court correspondent, Fred Tettey Djabanor said Kofi Amoabeng was put before court together with the CEO of defunct Beige Bank, Mike Nyinaku.

On the same day , Accra Circuit court granted bail to the President of UT Holdings, Prince Kofi Amoabeng but Mike Nyinaku was denied bail. Mike was then remanded into prisons custody to reappear on January 22, 2020. His application for bail moved by his lawyer, Thaddeus Sory, was however accepted by the court on the 22nd but Mr Sory in his bail application revealed that Nyinaku had fallen ill and was on admission at the Police Hospital.

According to the prosecution, the two men who run different organizations allegedly misappropriated funds in excess of GH¢200 million belonging to their customers. The prosecution said investigations were still ongoing into their separate cases to ascertain the full extent of their offences.

The Bank of Ghana (BoG ) says they are hopeful that the prosecution of UT Bank founder, Kofi Amoabeng and Beige Bank CEO, Mike Nyinaku will be seen to its legal conclusion.

Speaking after the two were arrested and put before the court on the 14th January 2020, the second Deputy Governor for BoG Elsie Awadzi said they will work with all relevant state institutions in the prosecution of UT Bank founder, Kofi Amoabeng and Beige Bank CEO, Mike Nyinaku.

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Entrepreneur I Policy & Research Analyst I Petroleum Engineer. More Justice Offei Jr is a an award winning and Tony Elumelu Entrepreneur. He is an analyst in the area of Petroleum, Finance, Entrepreneurship and Energy. His research-based publications focuses more on how Africa can rethink a new pathway of economic development within the scope of entrepreneurship, finance and petroleum.

He has a BSc in Petroleum Engineering from the Kwame Nkrumah University of Science and Technology, Kumasi, Ghana and currently pursuing a blended Masters pathway at MIT in Economics. He also has other certified qualification in Investment , entrepreneurship, credit risk management , advocacy among many others.

He is a Referral Partner for Epsilon Acquisition Service, LLC based in Washington DC. Voluntarily serve as the communication Director for the Ghana Chamber of Young Entrepreneurs (GCYE). He is a mentor and representative for FasterCapital, a Dubai-based venture incubator. Justice founded Sikadan Microcredit services which innovated the fintech named SIKADAN Homes.

His selfless passion for the Ghanaian entrepreneurial ecosystem drove him to initiate the Ghana Startup Act advocacy in 2018 which has then become the leading agenda for most stakeholders in Ghana

In 2019, he was appointed as the team leader to set up the Global Entrepreneurship Monitor (GEM) Ghana.Column: Justice Offei Jr.

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