Patrick Boamah, a Member of Parliament for Okaikoi Central, has disclosed that an appeal before Parliament on the collapse of UniBank and UT Bank is a nonstarter. He explained that Parliament cannot intervene in the matter.

According to him, Parliament is incapable of taking any action on matters that are pending before courts of competent jurisdiction.

“You are asking Parliament to look into this petition without capacity.

“The matter is sub judice; and if you look at our rules, it is clear that any matter that is before a court of competent jurisdiction, Parliament cannot look into that matter.”

Parliament, on Tuesday March 23, 2021, approved proposals for the formation of a seven-member committee to probe issues on collapsed banks.

This follows request by UT Bank and UniBank to Parliament to probe the conduct of the Central Bank over their collapse. The Bawku Central MP, Mahama Ayariga, also agreed for the petition to be admitted for Parliament to take action on it.

That notwithstanding, Patrick Boamah, insisted that it would be appropriate to resolve the matter in court with the two petitioners. He iterated that it is unnecessary to put it before Parliament as the House cannot reverse the decision.

“If [Mahama] Ayariga is coming through the backdoor with a petition, the question is, what is he seeking to gain? I think he is just wasting my uncle and senior brother’s [Duffour and Kofi Amoabeng] time. Because if the committee is set up and the report is produced; will the house have the capacity to reverse the revocation or to endorse the decision of the Central Bank? We don’t [have that power]”.
Patrick Boamah

Investigation on collapse of UniBank and UT Bank

Meanwhile, Mahama Ayariga has welcomed the decision by Parliament to form a committee to probe the collapse of the banks.

The Bawku Central legislator noted that investigations conducted by the committee will bring clarity on the matter. He further disclosed that it’s apparent that a “bipartisan forum” has been created to examine the Central Bank.

“So, at the end of the day not only shareholders are being provided an opportunity to vindicate their case; but then also the bank is being provided a platform to show that its conduct was not a bad one and that will enhance confidence in the Central bank itself.”
Mahama Ayariga

UniBank and UT Bank demand probe of BoG and GSE

Prince Kofi Amoabeng, and Dr. Kwabena Duffuor have petitioned Parliament to investigate the conduct of the Bank of Ghana and the Ghana Stock Exchange on the revocation of their license.

In the case of UT Bank, the Central bank claimed it took the action against the institution because it was bankruptand was unable to recapitalise despite several assurances from the company’s shareholders.

It also gave similar reasons for the revocation of uniBank’s license saying the financial institution was largely undercapitalized.

Dr. Duffuor is currently litigating the collapse of his bank and its merger with Consolidated bank. He is also asking the House to remedy the “harm” done to the shareholders.

Mr Amoabeng stated that claims his bank’s license was revoked without regards “to the rules of Administrative Justice”. According to him, Bank of Ghana should also restore UT Bank’s license.

Additionally, Mr. Amoabeng is thus seeking Parliament to direct the restoration of the license.