BoG to track assets of spouses, children of UT, Capital Bank gurus

BoG to track assets of spouses children of UT Capital Bank gurus eagle project

It seems the Bank of Ghana is leaving no stone unturned in its quest to clean up the mess created by the collapsed banks in the country beginning with UT and Capital.

The central bank as of January 2018 had adopted a road-map with specific timelines to determine causes of the collapse of UT and Capital bank, bring sector and security agencies including EOCO on board, find innovative ways of clearing the debt left behind, and possible sanctions for persons indicted.

The road-map document, mandates the central bank together with Receivers of the two banks, PricewaterhouseCoopers to assess registered financial assets of spouses, children and parents of board of directors and shareholders of the said financial institutions, possibly to evaluate and use them for defraying some of the debt if indeed it comes out that those assets were acquired with monies from the collapsed banks.

“Receiver with the assistance of Bank of Ghana, Financial Intelligence Centre, Central Securities Depository and Registrar Generals’ Department assemble registered and financial assets of all shareholders and board of directors of Capital Bank and UT Bank including related family members (spouses, children and parents).”

The Bank of Ghana per the document code-named “Eagle Project” was also expected to have taken stock of assets of all directors and shareholders of UT, Capital and Sovereign banks.

The Joint Receivers of the defunct banks were also ought to have between January 29 and February 8, 2018, taken inventory of assets of related businesses of board members and related parties of UT, Capital and Sovereign banks.

Woes of UT and Capital banks

The Bank of Ghana announced the collapse of UT and Capital banks a year ago because they were “deeply insolvent.”

BoG allowed the GCB bank to acquire the banks and issued a GHc2 billion bond to clear the debt left behind.

That was the first time the central bank was taking such decision against a financial institution in the history of Ghana’s banking regime.

According to the Eagle Project, all shareholders and ex-directors of Capital bank, UT bank and Sovereign Banks were to immediately “undertake a written commitment of prohibition from any financial market institution for a period of 5 years.”

Quarterly certification

By the Eagle Project, BoG is expected to take quarterly certification of Board of Directors and key management of financial institutions.

The board of directors and key managers of banks are also supposed to disclose transactions they go into with any “related and connected party.”

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