Relevant Business News from Ghana

Former Chief Executive Officer and Director of U.T Bank, Mr. P.K Amoabeng An investigative report into the operations of now-defunct UT  and Capital Banks has revealed that some payments were made to former Chief Executive Officer and Director of U.T Bank, Mr. P.K Amoabeng from a loan defaulting entity, Kofi Jobs Limited. The loans which amounted to GHC 5m were never disclosed to the Board of the U.T Bank. The report also revealed that there was also a significant amount of inter-group lending involving other subsidiaries of the holding company, UT Holdings,  while connected party loans were made to some companies as listed below: Ibrahim Mahama’s Related Companies, amounting to GHC 261.4 m and US $ 6.4 m Quincy Sintim’s Related Companies, amounting to GHC 84.1 m Beige Group’s Related Companies, amounting to GHC 10.9m “The bank sought a waiver of the Ibrahim  Mahama related companies’ single obligor violations by the Bank, yet undertook a pass through US $...

The central bank has indicated that it will soon take punitive measures against Menzgold Ghana Company Limited. According to the Bank of Ghana (BoG) Menzgold, which is known as a precious minerals trading company, is carrying out unlawful transactions by taking deposits. Menzgold is currently operating with a license granted it by the Minerals Commission and the Ministry of Lands and Natural Resources. In a public notice issued by the BoG, it said the company has no authority to engage in what it says are the “solicitation, receipt of money or investment and the payment of dividends or returns to its clients.” The central bank maintained that Menzgold is in breach of section 6(1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930). BoG further said in spite of several warnings to the company, Menzgold continues to engage in the illegality; hinting that discussions were already underway with regulatory authorities to enforce the approp...

Prof.-Godfred Bokpin Economist, Prof. Godfred Bokpin has said that, the Bank of Ghana (BoG) is to blame for the woes of banks in the country. Ghana is currently experiencing a period of banks’ struggles with many analysts calling for pragmatic measures to address the issue. Speaking on Eyewitness News  on Wednesday, Prof. Bokpin indicated that, the BoG must take full responsibility of the crisis in the banking industry. On August 1, 2018 the BoG  consolidated five local banks ;  Beige Bank, Construction bank, Royal bank, uniBank and Sovereign bank into what it calls the Consolidated Bank Ghana Limited. According to the Governor of the Bank of Ghana, Dr. Ernest Addison, some of the banks obtained their licenses through false means by presenting documents that painted a picture as though they could meet the  new capital requirement . In 2017 also, the central bank  revoked the licences  of UT and Capital Banks because the liabilities of the two...

The management of now-defunct Capital Bank used liquidity support given by the Bank of Ghana as capital to secure a license for another collapsed bank, Sovereign Bank. The report cites an emergency board and Executive Committee meeting on October 13, 2015, which notes concern with the manner in which the Ghc 610 million liquidity support to the struggling bank was being used. The monies were moved by a member of the Board, Ato Essien into companies believed to be owned by him and others. The rest of the money was used to set up the Sovereign Bank. “Funds raised through the commercial paper issuance by MC Management Services Limited and Breitling Services were used as capitalization for the establishment of the Sovereign Bank Limited. “The placement of GHc 130 MC to Alltime Capital and GHc with Nordea Capital, was a round-tripping of the liquidity support from Bank of Ghana to set up Sovereign Bank,” the report said. The report also indicated that Dr. Mensa Otabil may h...

Energy Minister, Boakye Agyarko President Akufo-Addo has sacked the Energy Minister, Boakye Agyarko. A statement from the Communications Directorate of the Presidency copied to citinewsroom.com on Monday said Mr. Agyarko’s firing “takes immediate effect.” The statement said Mr. Agyarko has been directed to “hand over his office to the Minister for Lands and Natural Resources, Mr. John Peter Amewu, who will act temporarily as Minister for Energy, until a substantive appointment is made.” “The President wishes Mr. Boakye Agyarko well in his future endeavors,” the statement added. The statement failed to give reasons for his dismissal, but reports indicate that it is related to the renegotiated Ameri deal which alarmed many, including the Minority, who described it as a “stinky” deal for Ghana. The government has reportedly withdrawn the deal following the uproar. The Akufo-Addo government took the revised deal to Parliament last week under a certificate of urgency, bu...

Citi Business News has gathered three local banks Premium, GN and Sahel Sahara banks have agreed to merge. The move follows the Bank of Ghana’s directive for all banks to meet the minimum capital requirement of 400 million cedis this year (2018). The three banks according to reports, commenced the merger talks this year, and finalized the deal this month- July 2018. The deal is however yet to be approved by the central bank which has received the proposal. If approved, it will be the first merger which will be undertaken by local banks as part of moves to meet the minimum capital bank. The Capital Requirement Directive sets the requirement by which banks will calculate their level of capital as spelt out under the Banks and Specialized Deposit-taking Institutions Act. The Bank of Ghana says its implementation of the new Capital Requirement Directive starts on July 1, 2018, although banks will be expected to start full compliance by January 1, 2019. M...

The Bank of Ghana has consolidated five local banks into what it calls the Consolidated Bank Ghana limited. The banks are Beige Bank, Construction bank, Royal bank, uniBank and Sovereign bank. According to the Governor of the Bank of Ghana, Dr. Ernest Addison, some of the banks obtained their licenses through false means by presenting documents that painted a picture as though they could meet the new capital requirement. “The government has recapitalized the consolidated Bank Ghana Limited to take on including all liabilities of these five banks. The government has also issued a bond of GHc5.76 billion to cover the gap between the liability and assets assumed by the Consolidated Bank. The Consolidated Bank Gh. Ltd is expected to play a strategic role in the transformational agenda of the government,” he said. Dr. Addison however assured clients of the affected banks that “your monies are safe.” By: Godwin Akweiteh Allotey/citinewsroom.com/Ghana

The Institute of Chartered Accountants (Ghana) (ICAG), the body in charge of regulating the accountancy profession in Ghana has finally launched its much-awaited revised syllabus. The syllabus was launched at the auditorium of the Department of Economics, University of Ghana on Thursday 26th July 2018. The revised syllabus is expected to take effect from the NOVEMBER 2019 Professional Exams. The revision is in line with changing trends in the global economy and professional education space. The following are some of the key highlights of the revised syllabus: 1.       What is the purpose of the revision? To produce a professional accountant as a well-rounded advisor who: a. Contributes real value in management of all types of organisations b. Acts in the public interest as well as that of their employer or client c. Delivers competencies that include sound knowledge and higher value technical skills expected of accounting and finance profe...