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Business News of Tuesday, 7 August 2018

Source: Myjoyonline.com

Sovereign Bank did not obtain license through false pretense – Ex-board chair's lawyer

The lawyer for the former Board Chair of defunct Sovereign Bank has challenged the Central Bank's assertation that the bank obtained its license under false pretence.

Kwesi Amoafo Agyemang told Joy News’ Evans Mensah on Newsnight Monday that his client, Dr Kwame Acheampong-Kyei, went through the right processes to obtain the license.

“What I understand BoG to have said was that the money which was brought came from another bank and so later on when that bank was also in need of money they withdrew it.

“And so, it is not true that at the time that the license was granted the money was not there. I think it was verified that there was money which was evidence of capitalisation to satisfy the requirement for granting the license,” he said.

His comments follow Dr Akyeampong-Kyei describing as vile and malicious reports linking him to some fraudulent acts which may have led to the collapse of the bank.

According to the Board Chair of the Bulk Oil Storage and Transport (BOST), such reports are only calculated at tarnishing his hard-won reputation.

In a strongly worded statement issued by his lawyers Monday, he said he has nothing to do with the activities that led to the collapse of the bank.

Dr Akyeampong-Kyei resigned from the Board of the bank four months prior to its collapse last week.

His statement comes days after the Bank of Ghana withdrew the license of the Sovereign Bank together with four others and merged the five banks into the Consolidated Bank Ghana.



Explaining the transaction between Sovereign Bank and Capital Bank, he said the money was given to Sovereign Bank in the former Board Chair’s name.

“As I understand the money [in the form of treasury bills] was in Dr Akyeampong-Kyei…but it was given back to the troubled bank [Capital] without his knowledge. That in itself makes him a victim rather than now standing accused of going back to take money. He has never gone back for any money,” he explained.



According to Mr Amoafo Agyemang even though the money was given in the BOST boss’ name, he was not aware when it was moved back to Capital Bank when they wanted it back.

“When he became aware this was what had happened, he released he can no longer continue. At that point, he knew there was no money to support the license which has been granted.

“At the meeting with BoG, he offered to resign because he had a reputation to protect, so he resigned at that point,” he said.