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26.01.2020 Feature Article

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

Amoabeng's UT Bank Should Have Been Given A Bailout: The 'Too Big To Fail' Local Banks
LISTEN JAN 26, 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.

To read the full publication continue by clicking on this link: https://justiceoffeijr.wordpress.com/2020/01/19/amoabengs-ut-bank-should-have-been-given-a-bailout-the-too-big-to-fail-local-banks/

Justice Offei Jr.
Justice Offei Jr., © 2020

Entrepreneur I Policy & Research Analyst I Petroleum Engineer Column Page: JusticeOffeiJr

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