Black Stars To Lose Headline Sponsor As uniBank Is Declared Insolvent
Unibank's sponsorship deal with Black Stars hangs by a thread after the indigenous bank was declared insolvent by the Bank of Ghana on Tuesday.
In November 2016, Unibank renewed its partnership with the Ghana FA by signing a three-year deal worth US$ 1.2m.
The Bank of Ghana has appointed an audit firm KPMG as Official Administrator aimed at saving UniBank from imminent collapse.
Unibank among other things persistently maintained a capital adequacy ratio (CAR) below zero (currently negative 24%), making it technically insolvent.
It contravenes section 29 of Act 930 which requires a minimum CAR of 10% to be maintained at all times.
Also, they persistently suffered liquidity shortfalls and consistently breached its cash reserve requirement.
As a result, UniBank has relied extensively on liquidity support (over GHS 2.2 billion) from the Bank of Ghana over the past two years to meet its recurring liabilities.
Among other things, a key shareholder of the bank managed to obtain liquidity support from the Bank of Ghana using third-party banks as its agents.