Member of Parliament (MP) for Bolgatanga Central, Isaac Adongo, has instructed Gabby Asare Otchere-Darko to assistance his uncle, President Nana Addo Dankwa Akufo-Addo and his household to stop thieving instead and as effectively cease deceptive folks on monetary issues.
Mr Adongo’s reaction is a reply to a write up by Gabby Asare
Otchere-Darko which alleged that previous Deputy Governor of the Financial institution of Ghana(
Bog), Dr Johnson Asiamah, gave a pointless GH¢860 million liquidity guidance to UT Financial institution to support the
bank deal with up for financial loans taken by Ibrahim
Dr Asiamah had criticized the existing leadership of the Bog
for how it is continuing with the economical sector clean up by predominantly revoking
licenses of bancrupt monetary establishments, prompting Mr Otchere-Darko to
situation the writeup about how Dr Asiamah gave out liquidity support needlessly to
support brother of former Presidential Mahama, Ibrahim Mahama.
But Mr Adongo has accused Mr Asare Otchere-Darko of looking for
to mislead the community on fiscal issues, urging him to instead talk to his
uncle,the President, and his cousin, the finance minister and some of his
household customers who ” have devoid of disgrace looked in the eyes of Ghanaians,
and in the American philanthropic gesture downgraded the assurance expected for
our national belongings ( ECG) and proceeded to procure a phony coverage guarantee
to loot and share about GHC 2.2 billion countrywide assets.”
Mr Adongo goes on to make clear that liquidity support is not
meant to address debts.”…How does liquidity guidance to a lender support cover
up for financial loans on the guides of a bank? He concerns.
The Lavatory has due to the fact 2017 revoked licenses of quite a few economical
institutions for many violations of the law that allows them to run.
But there have been disagreements in excess of the tactic of the
Whole assertion of Adongo underneath:
Gabby Asare Otchere-Darko, be sure to cease the hatred and
ignorance and recommend the 74 yr old male and his household to halt stealing our
I woke up to a jaundiced and an ignorance-laden posting
purported to have been issued by Gabby Asare Otchere-Darko and afterwards heard identical
staying discussed thoroughly on Citi FM. The short article is captioned
‘How Dr Johnson Asiamah gave needless Ghc860 million
liquidity guidance to UT Lender to cover up debts of Ibrahim Mahama companies’.
At the end of the empty post, he connected an interior
memo purporting to have emanated from the Financial institution of Ghana (Lavatory) and which he
thought, arms him to situation these kinds of a piece.
In current situations, I have experienced trigger to doubt the experience of
Mr Otchere-Darko and his appreciation of finance and though I have lengthy
resisted the temptation of coming to that conclusion, the information of the
write-up leaves a lot to be wished-for.
Liquidity Support to UT Financial institution
In the said short article, Mr Otchere-Darko in his endeavor to obtain
fault in which there is none claimed that UT Bank employed liquidity assist to cover
up for financial loans taken.
The curious concern is how does liquidity assist to a bank
aid go over up for loans on the publications of that lender? Evidently, this is the kind of
money engineering Gabby and his cronies know ideal as evidenced in how they
managed to procure the now infamous phony insurance coverage guarantee for the embattled
Electrical power Distributions Expert services Constrained (PDS).
Mr Otchere-Darko ought to know that the Financial institution of Ghana is a
‘lender of last resort’ in its features to build, retain and bolster
the security of the financial technique in accordance with regulation.
Portion 46 (1) (h) of the repealed Financial institution of Ghana Act, 2002
(Act 612) (the operative law in May 2016 when the liquidity guidance was offered
to UT Financial institution) clothes the Bog with the powers to extend liquidity aid to the
banking sector as follows “grant, on the ailments identified by the
Board, innovations to monetary establishments for preset periods not exceeding 3
months from publicly issued treasury charges of the federal government maturing within
ninety-1 days of the difficulty.”
For that reason, as a law firm, one particular would have expected Mr
Otchere-Darko to have backed his examination with the applicable guidelines that the Bog
actions at the time broke but as was to be envisioned, he unsuccessful to mention any.
Given that added know-how is not a crime, enable me remind
Law firm Otchere-Darko that until 14th September 2016, when the amended Financial institution of
Ghana Act was assented to and turned law, Act 612 of 2002 was the operative legislation
on 12th May well 2016.
And that designed it
lawfully permissible and in simple fact obligation certain by Bathroom to supply liquidity help
to financial institutions in need of and qualified to get similar.
It is critical to recall that UT Financial institution at the time was faced
with critical shareholder disagreements, with the Intercontinental Monetary
Company performing difficult to take care of it. The Bathroom was mindful of traders who
expressed interest in obtaining UT Financial institution and was functioning to support strengthen UT Lender
to be obtained to empower the Ghanaian tax payer recoup its funds and not the
hurry with which Bathroom collapsed it. The Republic Economical Keeping was willing
to acquire the financial institution on problem that Lavatory will ring-fence its liquidity support
for a period but Dr Addison refused this proposal and alternatively collapsed the
financial institution. This led to Bog producing off Ghc860 thousands and thousands of tax payers’ cash. It also
induced Federal government to pump further GHc1 billion of tax payers dollars down the
Although Mr Otchere-Darko talks will make a mountain out of an ant
hill, grevious malpractices are going on that really should alternatively have caught his
Less than Dr Addison, big sums of liquidity assist has been
extended to banking companies.
Because 2017, and as late as 2018, Financial institution of Ghana has been
injecting a ton of liquidity help to ailing banks, which includes so called
recapitalised banking companies immediately after wasting GHc21 billions of tax payers funds on
collapsing banking companies. In 2018, GCB acquired in excess of GHc1 billion of liquidity
guidance from Bathroom. In the last quarter of 2018, Lavatory lent more than Ghc3.6 billion in
liquidity help to CBG just after expending about GHc8.05 billion on this very same financial institution
by way of paid up funds (GHc450 million) and company bonds of (Ghc7.6 billion)
to be compensated by the tax payer.
Consolidation of Financial loans and One Obligor Waiver
It is interesting that any individual with a passing knowledge of
finance will contemplate that extending liquidity aid to a lender can assist
disguise or address up loans on its publications and nevertheless in earning the software for
solitary obligor waiver you disclose the so called financial loans to be lined up.
For the sake of training, liquidity guidance does not
lead to the variables utilized in calculating solitary obligor limits. Single
obligor restrict is calculated on Tier a person money. Tier just one funds is said
capital, profits surpluses and reserves. So, how does granting liquidity assist
to a lender strengthen its single obligor obligations? Even though i can understand the
lack of appreciation of the troubles as exhibited in the posting, I assume it
more exposes why Mr Otchere-Darko have to remain away from technical concerns on
finance to avoid miseducating our youthful and scholar people.
It is regular apply in credit score management to appraise a
non-doing financial loan and to interact the borrower to uncover methods to assist the
client repay the facility. This may well direct to new proposals for compensation based
on the realities and difficulties of the customer backed by the client’s enterprise
situation. If the Financial institution is persuaded by the proposals, enterprise case and supported
funds flows and benefit-driving methods, the personal loan may perhaps be restructured. Component of
the restructuring procedure may well call for initiatives to carry all exposures to the
consumer alongside one another (consolidation) to make certain enhanced hazards administration and
monitoring of the various portfolio. This method could have to have regulatory
approvals dependent on the approval thresholds.
What I see in the memo is an approval of restructuring of a
pair of services which individually may well not involve waiver of single
obligor limit but cumulatively as linked party amenities may well involve waiver
of solitary obligor obligations. Any Governor who is desiring of serving to a financial institution
deal with an current non-executing personal loan to make it accomplish would grant the
acceptance based on a seem business, lawful and economic scenario.
The memo essentially identifies the financial loans that have been
restructured and seeks approval for equally the restructured facilities and the
consequential waiver of solitary obligor obligations for the personal loan. How is this a
cover up? If that is a criminal offense, then the
waivers listed below are scandalous
In 2017, when Bathroom accepted a corporate bond of GHc2.2
billion of Governing administration issued to GCB for the resolution of UT and Money Banking institutions,
the Lavatory technically waived GCB’s single obligor restrict to one consumer, Federal government
of Ghana. By that gesture GCB experienced lent Ghc2.2 billion to only one particular shopper, the
Federal government of Ghana. GCB Bank necessary a Tier 1 cash of GHC22 billion to be
equipped to meet up with its solitary obligor restrict to undertake that transaction but waived
it even even though GCB Financial institution did not have a stability sheet of that magnitude.
In 2018, when Lavatory permitted a company bond of Ghc7.6
billion of Govt issued to CBG for the consolidation of the 5 banking institutions and a
additional GHc1.5 billion for the consolidation of Premium and Heritage Financial institutions in
January 2019, Bog technically granted a waiver of single obligor restrict to
help that to transpire. How can a bank with mentioned capital of GHc450 million
lend GHc9.1 billion to just one one consumer?
Some of the banking institutions that are holding on to the Electrical power Sector
bonds and all those reeling underneath the stability of Ghc 4 billion of the initial
legacy money owed have had one obligor breaches waived. The new accumulation of
around US$1 billion of electricity sector money owed have some of the banking institutions exceeding their
single obligor limits to the Electrical power sector SOEs.
While I am let down at the screen of Mr Otchere-Darko
on this issue, I am completely astonished that he continue to has the impudence to converse
on issues of this nature when
1. His uncle, Present Akufo-Addo and his cousin, Mr Ken
Ofori-Atta and some of his loved ones users have, without the need of disgrace, looked in the
eyes of Ghanaians, and in the American philanthropic gesture downgraded the
assurance essential for our countrywide belongings (ECG) and proceeded to procure a
fake insurance promise to loot and share in excess of Ghc2.2 billion national property.
2. When it has turn out to be clear that the President is bent on
thieving NIB and ADB by means of the back doorway by illegally doling out tax payers
dollars to GAT to purchase our individual financial institutions and location them privately with his cronies.
PDS and President Akufo-Addo’s government’s thieving syndicate crafted all-around the coronary heart of the procurement look at pet dog PPA, the Ministry of Finance and the Bathroom would make Ghana a laughing inventory in intercontinental diplomatic circles.
Mr Otchere-Darko requires to know that Ghanaians have become
wiser and are far more appreciative to the doer and pure-hearted John Dramani
Mahama to save us from thr cronyism that the NPP government is inflicting on