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Business News of Monday, 30 July 2018

Source: Myjoyonline.com

Pay your debts to Unibank to prevent collapse - KPMG tells gov't

The new administrator of Unibank is asking government and its allied institutions to pay its debts owed the bank in order to prevent the local bank from total collapse.

A June 22, 2018 letter written and signed by Simon Dornoo on behalf of KPMG, to the Finance Minister said the government must pay the debts at its earliest convenience.

As at May 31, 2018, government and its agencies are said to be indebted to Unibank to the tune of 868,973,599.10.

The debt was incurred over a period spanning both the NDC and NPP government.

The list of debtors named in the letter include COCOBOD, ¢137,499,785,98, Ministry of Finance, ¢223,049,043.72, Road Fund, ¢229,434,743,62, GETFund, ¢2,023,961.10

Other debtors include BOG, BDCs government contractors etc the letter indicated.

“A timely response will in no doubt help in alleviating the current liquidity challenges facing the bank and minimize the impact the delay in settling these amounts is having on its depositors,” Dornoo said in the letter.

A Deputy Finance Minister Charles Adu Boahene acknowledged receipt of the letter but said in a July 12 letter that the Ministry is “currently validating the numbers together with Bank of Ghana and as soon as practicable would revert with full details as requested.”

In March 20, 2018 government announced the takeover of Unibank due largely to liquidity challenges.

Announcing the takeover, the Governor of the Bank of Ghana Dr. Ernest Addison, said uniBank is currently insolvent.

He also announced the appointment of KPMG to, over a period of six months; manage the bank to save it from collapse.

Having taken charge over a period of four months, KPMG has two months left to sanitize the Bank said to be insolvent.

The administrators say government must pay its debt owed the bank as one of the key measures to bringing the bank back on its feet.

Member of Parliament for Bolga Central Albert Adongo told Joy News’ Evans Mensah government must intervene and not allow the local bank to go under.

According to him, if the government pays its debt owed Unibank it will be overcapitalized more than any bank in Ghana.

He said Unibank has in excess of ¢5.7billion in debts owed it and would have no issues with recapitalization if those monies are paid.

He said Unibank has provided a roadmap for its recapitalization and that needs to be given serious attention.