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General News on Tuesday, June 4th, 2019
Source: citinewsroom.com
2019-06-04
Dr. Kwabena Duffuor, former Minister of Finance
The shareholders of uniBank have requested an injunction against the auction of certain badets of the bank by the receiver, Nii Amanor Dodoo.
It was after the High Court judge in Accra who presided over the case in which the directors of uniBank challenged the revocation of the bank's license appointed an arbitrator, the former judge of the Supreme Court, Judge Dateh Baah, to determine whether the decision to place the bank in place the receivership broke the law.
The bank's shareholders argue that until the arbitrator decides definitively on the matter, the receiver should be prevented from selling uniBank-owned office equipment.
An announcement was published May 31 in the Daily Graphic announcing said auction, scheduled for Wednesday, June 5, 2019.
The writ of the injunction stated that the shareholders of the bank would suffer "irreparable harm and hardship that could not be offset by money" if the escrow was authorized to proceed with the auction.
The shareholders added that, despite the judge's order, the plaintiff, Mr. Dodoo, "actively represented himself as a receiver of Unibank and behaved perniciously, deleteriously and maliciously in an attempt to harm Unibank."
This could hamper attempts to rescue the bank if its license was reinstated.
Referee appointed
The judge, Judge Jennifer Abena Dadzie, had previously ordered that the arbitration proceedings be commenced in a crucial decision in favor of the bank's directors, after the receiver attempted to have the court quash their claim.
The directors of uniBank, one of five banks merged by the Bank of Ghana (BoG) into Consolidated Bank Ghana Limited, are challenging the revocation of the bank's license, which they described as illegal.
The judge's decision was the latest in a series of crucial decisions to be made by bank administrators after the court ordered the Attorney General to join the original case.
The Receiver had previously filed a motion asking the court to dismiss the counterclaim of bankruptcy attorney Yaw Oppong for the reinstatement of the license, arguing that it was "frivolous" and "unfounded" .
He also argued that the appropriate forum for dealing with license revocation issues under Bill 930 is an arbitration forum and not an ordinary litigation.
However, counsel for the bank's directors objected to this badertion, saying that even if an arbitration was the right forum to address their concerns, this did not warrant the filing of the file.
The judge accepted this argument of the lawyer, recognizing that the arbitration did not prevent the jurisdiction of the commercial court in the matter.
"If the law admits a preference for the arbitration procedure, any proceedings before the court should be suspended pending the decision of the arbitration proceedings on a request …", has the law she said.
The judge pointed out that the arbitration issues fell within the scope of Article 141 of Law 930 and included the question of the revocation of the UniBank license mentioned in the counter-claim.
The decision added that "in such cases, the authorities are clear; the court suspends proceedings relating to matters under Law 930 while the parties attempt to resolve these issues through arbitration. "
The judge suspended the proceedings before the commercial court pending the decision of the arbitrator.
Revocation of license
BoG Governor Dr. Ernest Addison announced the consolidation of uniBank with other banks on August 1, 2018, indicating that, according to information provided by the official administrator, KPMG baderted that uniBank was insolvent on the balance sheet.
"Among other things, the bank's interest income and other sources of revenue are insufficient to cover the cost of funds related to the underlying borrowings and liabilities, as well as general expenses of about 0.31 billion GH ¢ per year. . "
These claims, however, were challenged by the directors of the bank
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