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Business News of Saturday, 25 August 2018

Source: Starrfmonline.com

uniBank’s suit against BoG good – Dalex Finance Boss

The Director of Business Operations at Dalex Finance, Joe Jackson, has described as apt the suit against the Bank of Ghana by shareholders of uniBank over the revocation of the license of the indigenous bank.

The shareholders of uniBank led by former Finance Minister and Governor of the Central bank Dr Kwabena Duffuor on August 20 beseeched the High Court over what they described as “arbitrary and capricious” decision of the Dr Ernest Addison’s led BoG to revoke the license of uniBank.

They are therefore praying the High Court to place an injunction on the BoG’s decision to revoke its license and restore it into private hands.

uniBank was one of five local banks which was merged into the Consolidated Bank of Ghana a few weeks ago over alleged regulatory breaches.

Speaking to Starr Business’ Fred Dzakpata, Jackson lauded uniBank’s decision to sue the Central Bank over the revocation of its license.

The suit according to him will be a test case for banking regulation in the country and also influence reforms in the sector.

“I think it is a good thing. The last few weeks a lot has been thrown out, some people are postulating that there’s an element of politics, vindictiveness whatever. It will be good to test this in court. And, if the situation is really as bad as the Central bank is saying we will see it. If there’s some other element at play it will be seen,” said Jackson.



“It’s good to shine the light. Rumours, darkness is not good. It creates insecurity and takes away the trust that underlines the financial sector,” he added.

Meanwhile, The President of IMANI Africa Franklin Cudjoe has challenged claims by the Central bank that uniBank was financially stressed, leading to its takeover.

The BoG on August 1, relying on a KPMG report merged Unibank and four other banks under a new name Consolidated Bank of Ghana (CBG).



According to the governor of the Central Bank Ernest Addison, the merger was necessary because the five banks including Unibank were in critical financial distress and that it will “help ensure that the banking sector maintains a strong indigenous presence.”

The outspoken policy analyst, however, wondered if the declaration that Unibank was broke was not a deliberate ploy to waste taxpayers’ monies.

He said after breathtaking exchanges with Dr Duffuor, founder of Unibank, he believes the claims of the Central Bank were not cogent.

“The presentation from the Central Bank is x-rated and sadly it is mischievously being released without adequate notice to Unibank!” he stated Thursday in a Facebook post.



“I have seen the papers and spoken at length to Dr Kwabeba Dufour, the former Finance Minister and Central Bank Governor…

“This is not how to treat even your worst enemy. While appearing to sanitize the financial industry let us be careful we do not create political arrangements that will be visited and changed by another set of politicians,” he added.