A detailed report on the demise of the UT Bank has attributed the collapse of the bank to huge non-performing loans.
It has been revealed that the bank collapsed after persons who took loans refused to pay, including Ibrahim Mahama, brother of then-President John Mahama.
The financial report indicates that Ibrahim Mahama owed the bank ¢302m, a facility that was extended to his four companies.
This subsequently left the bank at great risk of collapsing, with the businessman continuously defaulting payments.
On May 20, 2016, the Board of the bank called an emergency meeting to discuss how best to get Ibrahim Mahama to pay up his loans.
Minutes of that meeting, as told from a member of the Board, mentioned that they were disappointed “[Ibrahim Mahama] had made no effort to honour any of the assurances he gave when he met them on 29th March 2016.”
Management of the bank then decided “exert more pressure” on the businessman by meeting his brother, then President Mahama, in an attempt to get him to pay the loans he took.
At another meeting where the Board was expecting to meet Ibrahim Mahama, the businessman sent an emissary instead: Mr. Adi-Ayitevi.
The report said the Board “felt slighted and disrespected by his actions” and “questioned his credibility as a businessman.”
The Board’s plan was to collect their monies before December 2016 when the country would have gone to the polls.
Following a third meeting over his non-performing loans, Ibrahim Mahama assured the Board he was “making every effort to pay the amounts outstanding from related companies.”
However, the license of the UT Bank was withdrawn by the Central Bank over what was described as an irredeemable liquidity crisis.