The staff of the now defunct Construction Bank owes a large portion of its loans – Report

General News of Wednesday, January 23, 2019

Source: citinewsroom.com

2019-01-23

A report on the badets and badets inventory of the five consolidated banks revealed that Construction Bank's total loan portfolio of 620,000 GHG consisted of term loans to nine of the Company's employees.

The report, which covers the five banks (Beige, Unibank, Construction, Sovereign and Royal Banks), provides badet values, including cash, loans, securities, real estate and similar properties, intangible badets and other badets. badets.

The report was prepared by the receivers of the five banks, KPMG.

According to the Bank of Ghana, it complies with Article 130 (4) of the 2016 Law on Banks and Specialized Deposit Institutions, which states that the receiver must, within one month as of the taking over of this bank, prepare and present a report on the inventory. the badets and ownership of these banks at the Bank of Ghana.
According to the report, as of 1 August 2018, when the Sovereign Bank's license was revoked, the total badets of the bank amounted to 191 million kroner.

Of this sum, the bank had 496 million Ghc23. The remaining 370 million Ghc were loans and other securities representing 73% of the bank's total badets.

The receiver attributed the high number of non-performing loans of the bank to inconsistencies in collection efforts.

Unibank

On the other hand, Unibank had a total badet of 2.2 billion Ghc. Loans and other securities represented 82% of the Bank's total badets. Most of the bank's debtors worked in the construction sector with a debt of 934.3 million Ghc.

Next come the financial sector with 558 million Ghc.

The manufacturing sector owed the bank 283 million Ghc, and the service sector blocked 283 million Ghc.

Only 9% of the bank's badets were cash and cash equivalents in the amount of 164,164 million Ghc.

According to the receivers, the total net liabilities of Unibank, which amounted to 7.2 billion Ghc as of August 1, 2018, were accumulated operating losses, the deterioration in the quality of the Bank's badets and the amounts paid to related and related parties.

Royal Bank

The Royal Bank had badets of 376 million Ghc. Loans and other securities accounted for 56% of the bank's total badets. The receiver attributed the high percentage of loans to non-compliance with the bank's credit administration policies and insufficient recovery efforts.

Beige Bank

The total badets of Beige Bank amounted to 494 million Ghc. Loans and other securities represented 282 million euros, or 57% of the badets.

The bank provided GH ¢ 274 million, representing 31% of total loans to related parties.

Like the Royal Bank, the escrow said the Beige Bank did not adhere to credit administration policies and the shortcomings of the collection efforts.

Construction Bank

At August 1, the total badets of Construction bank amounted to 24.7 million GH ¢.

The Bank's loan portfolio, which represented only 3% of total badets, consisted of term loans to 9 employees of the bank, which amounted to 620 000 GHc.

The bank's treasury consisted of 92% balances with local banks and the Bank of Ghana.