Businessman Kofi Amoah has asked Finance Minister Ken Ofori-Atta if he collapsed some nine Ghanaian-owned banks in the first term of the Akufo-Addo government because Jesus asked him to do so.
Two banks, UT Bank and Capital Bank, were first taken over by GCB Bank in a purchase and assumption agreement.
Seven others, the Sovereign Bank, The Beige Bank, Premium Bank, The Royal Bank, Heritage Bank, Construction Bank and UniBank had their licences revoked and placed under the Consolidated Bank Ghana.
As a result of the banking sector reforms, the Bank of Baroda willingly folded up and exited.
Also, six banks merged. First Atlantic Merchant Bank Limited and Energy Commercial Bank merged into one; OmniBank Ghana Limited and Bank Sahel Sahara Ghana merged, and First National Bank and GHL Bank Limited also merged.
Ghana now has 23 functional universal banks in the country. Dr Amoah was the majority shareholder of Global Access Savings and Loans, which was among some 23 savings and loans firms also collapsed by the Bank of Ghana for being insolvent.
In addition to the banks and savings and loans companies, 347 microfinance institutions, 39 finance houses and 53 fund management companies were also down since 2017 under President Nana Akufo-Addo in a financial sector clean-up exercise.
Reacting to a recent comment by Mr Ofori-Atta that “it is up to Jesus to declare” whether He (Jesus), is happy with the way he (the Finance Minister) has handled the Ghanaian economy, Dr Amoah asked the President’s cousin in a tweet: “Did Jesus tell you to liquidate Ghanaian-owned banks built with hard work and sacrifices while saving your own Databank to be used in siphoning commissions from the huge loans you contracted for Ghana, which have now sent us to the IMF?”
“Honorable” Ofori Atta, one simple question:
Of the nine banks collapsed, the most controversial among them was Heritage Bank, whose Board insisted was solvent but was nonetheless collapsed by the Bank of Ghana with reason that the majority shareholder, Mr Seidu Agongo, was not fit and proper to own it.
In July 2020, the Editor-in-Chief of the New Crusading Guide, Abdul Malik Kweku Baako, described the collapse of that bank as “painful”.
Similarly, Kweku Baako expressed qualms about the central bank’s collapse of uniBank and GN Bank, which, respectively belonged to the former Governor of the Bank of Ghana, Dr Kwabena Duffuor and former presidential candidate Dr Papa Kwesi Nduom.
“I felt for the three banks: Nduom’s bank [GN Bank], Heritage Bank that belongs to that young man, Seidu Agongo (because of his extension into radio we met a couple of times in 2014 and 2015) and Dr Duffuor’s bank [uniBank]”, he said on Accra-based Peace FM’s Kokrokoo morning show.
In reference to Mr Agongo, Kweku Baako said: “He is a young man and I appreciated him and I want to see a young man like him who does great things”, adding: “It was painful his bank went down”.
“The same with uniBank”, he said.
“I will tell [you] honestly; Dr Duffuor is a personal friend but the action taken against the banks was not right”, he added.
Kweku Baako was not the only prominent voice that spoke against the collapse of Heritage Bank, in particular.
In September 2019, the founder and CEO of the now-defunct UT Bank, Mr Prince Kofi Amoabeng, also described as unfair and unfortunate, the revocation of the licence of Heritage Bank, whose founder has always argued that the bank was collapsed despite its books being above board.
Asked directly by Accra-based TV3’s Paa Kwesi Asare in an interview on Business Focus: ‘Do you think, as many think, that some of the decisions to close down certain banks was politically motivated?’, Mr Amoabeng answered thus: “A few of them, specifically Heritage Bank”.
“I don’t understand the issue because the Chairman of the Board is Dr Kwesi Botchwey. I have a lot of respect for him when it comes to finance in this country and managing Boards and he will not, in my estimation, ever accept to be Chairman of a bank that is not right and dealing in all sorts of things.
“I can say that for him, so, I find it extremely odd that a bank – and it had not started doing business for it to have bad loans and all those things – and for you to say that the owner didn’t have what it takes or however they put it, I mean the owner doesn’t run the bank, he’s a Ghanaian, he’s got money, he’s appointed the right people to run the bank for him, so, what is the excuse.
The Bank of Ghana revoked Heritage Bank’s licence on Friday, 4 January 2019 on the basis that the majority shareholder, among other things, used proceeds realised from alleged fraudulent contracts he executed for the Ghana Cocoa Board (COCOBOD), for which he and former COCOBOD CEO, Dr Stephen Opuni, are being tried, to set up the bank.
Announcing the withdrawal of the licence, the Governor of the central bank, Dr Ernest Addison told journalists – when asked if he did not deem the action as premature, since the COCOBOD case was still in court – that: “The issue of Heritage Bank, I wanted to get into the law with you, I don’t know if I should, but we don’t need the court’s decision to take the decisions that we have taken. We have to be sure of the sources of capital to license a bank; if we have any doubt, if we feel that it’s suspicious, just on the basis of that, we find that that is not acceptable as capital. We don’t need the court to decide for us whether anybody is ‘fit and proper’, just being involved in a case that involves a criminal procedure makes you not fit and proper”.
However, Mr Agongo responded with a press statement in which he said that the “not fit and proper” tag stamped on him by the central bank was “capricious, arrogant, malicious and in bad faith”.
According to Mr Agongo, “In purportedly making the determination, the central bank obviously had little regard for the time-honoured principle that a person is presumed innocent until proven guilty by a court of competent jurisdiction”, adding that: “The fact that I have a case pending before the High Court is a matter of public knowledge but my guilt or innocence is yet to be determined by the Honourable Court”.
“The determination that I am not a fit and proper person to be a significant shareholder of HBL because the central bank suspects the funds are derived from illicit or suspicious contracts with Cocobod is not only calculated to pre-judge the outcome of the criminal proceedings but also violative of the principle of presumption of innocence to which every individual is entitled. Since when has suspicion become a substitute for credible evidence?” Mr Agongo asked.
Read that full statement below:
PRESS RELEASE BY THE FORMER BOARD OF DIRECTORS OF HERITAGE BANK LIMITED (CURRENTLY UNDER RECEIVERSHIP)
The Bank of Ghana on Friday, 4th January 2019 announced the revocation of the banking licence of Heritage Bank Limited on the following grounds;
(1) Suspicions relating to the source of the bank’s capital and matters related therewith including the claim that it was derived from contracts with COCOBOD which were the subject matter of an ongoing criminal prosecution;
(2) Issues around the shareholding of the bank and alleged nondisclosure of ultimate beneficial shareholders;
(3) several related-party transactions which were not above board
(4) the significant shareholder was not ‘fit and proper”.
We would have preferred not to enter into any public disputation about these matters with the Central Bank so as not to further darken the cloud that hangs over the ongoing banking sector reforms. However, we owe a duty to ourselves, our cherished customers and our dedicated staff, who, in the face of numerous challenges remained committed to the vision of the bank to the very end, and to the general public, who have been keen observers of the developments in the banking sector, to clarify certain claims in the press release by the Bank of Ghana that are either complete falsehoods or inaccurate at best. We wish, therefore, to state as follows:
(1) Suspicious source of capital and related matters
We find it puzzling that the Bank of Ghana should now be disputing the existence of a contract between HBL’s main shareholder and COCOBOD, when the bank, as part of its due diligence ahead of the granting of HBL’s provisional banking licence, had requested and received confirmation from COCOBOD of the existence of the contractual arrangements between COCOBOD and the said shareholder.
We also want to state on record that Heritage Bank NEVER RECEIVED, nor is the Board aware of any order from the High Court (or any other court for that matter) for disclosures relating to any contract involving Mr Seidu Agongo. Indeed, we are hearing of this matter for the VERY FIRST TIME through the Governor’s news conference. In any case, we are unable to fathom why the High Court would order Heritage Bank to make disclosures in respect of a contract that it is not a party to or a custodian of.
Furthermore, it is even more puzzling that the Bank of Ghana would claim it has no knowledge of Mr Seidu Agongo being a shareholder of Sarago Limited. The shareholding structure of Sarago Limited is a matter of public record since it is a registered company at the Registrar-General’s Department. More importantly, the Bank of Ghana, in its own provisional licence to Heritage Bank, stated as a condition that the concentration of HBL’s shareholding in Mr Seidu Agongo and Sarago Limited be diluted within three years of the commencement of operations. Mr Agongo’s association with Sarago Limited was, thus, known to the Bank of Ghana at the time of the licensing.
On the issue of the transfer of an amount of GHS15.8m and the acquisition of some properties owned by the main shareholder which were stated in the Financial Statements of 2017, it will be misleading on the part of Bank of Ghana to claim that the bank and its shareholders, directors and management have failed to clarify matters. The records at the bank are very clear on these transactions and could have been very easily verified by the Banking Supervision Department if, indeed, they had any issues with the figures.
Furthermore, the Bank of Ghana, through the Banking Supervision Department WAS NOTIFIED IN WRITING about these entries. A Sale and Purchase Agreement covering the acquisition of the buildings, together with copies of the Valuation Reports from a competent property valuation firm were all duly forwarded to the Bank of Ghana. From the documents referred to above, there is, thus, no basis for any doubts about the name of the shareholder whose property was being acquired.
The valuation reports from the professional valuers also do give the basis of the valuation; and do, indeed, establish the basis for the prices agreed and captured in the Sale and Purchase Agreement that was executed between the two parties in the transaction. Even disregarding the correspondence sent to the BOG on this matter, A TEAM FROM THE BANKING SUPERVISION DEPARTMENT of the Bank of Ghana did carry out an onsite inspection in July 2018 (last year).
This team did have all documents made available to them and did express satisfaction with the explanations that were given them by management. Everything about the transaction was, thus, totally above board and made available to the Bank of Ghana.
(3) The grounds for the revocation of HBL’s licence also included a claim that the bank had approved ‘several related-party transactions’, that is loans and facilities to its main shareholder. Three companies were cited in the Governor’s statement:
SASSH ALLIANCE: Heritage Bank gave facilities totalling GHS6m; an Overdraft of GHS3m, and a Bank Guarantee of GHS3m, which were fully collateralised, were subjected to the standard credit requirements and were duly approved by the Board in accordance with S.67 of Act 930. These are the only transactions with SASSH ALLIANCE.
MOOR COMPANY LIMITED: The company had a vehicle leasing contract with Heritage Bank by which it provided the bank with its vehicles. This contract was terminated when the bank purchased the vehicles.
KEDGE COMPANY LIMITED: The company rents out properties to some of Heritage Bank’s branches.
All the above transactions were handled in a transparent manner and at arm’s length. Apart from the credit facility to Sassh Alliance, Heritage Bank has no exposure to any of the companies mentioned.
(4) The significant shareholder was not fit and proper
It is not clear to us how the Bank of Ghana came to this conclusion, but this is a matter obviously best dealt with by the said shareholder in any manner that he shall deem appropriate. Suffice it to say only that neither the bank nor its directors or shareholders were afforded the statutory notice period by the Bank of Ghana, within which to have responded to the allegations made prior to the abrupt revocation its licence, contrary to the provisions of the very same law under which the licence was revoked.
As a Board, we had engaged with the Bank of Ghana including the Governors on numerous occasions, ALL in relation to meeting the capital requirement, and at no time had the issues now being given as grounds for the revocation of the bank’s licence been raised. Indeed, as recently as December 24, 2018, the Bank of Ghana had given Heritage Bank clearance for a potential investor who had brought proof of funds to transfer the money. We had considered and applied for consideration under the Ghana Amalgamated Trust scheme and had received positive signals. We were literally in conversation with our prospective investor when the bank was summoned at about 12 p.m. to a meeting at 2 p.m. and handed a letter revoking the bank’s licence.
Heritage Bank was by the Bank of Ghana’s own admission, a solvent bank. It NEVER received liquidity support from the Bank of Ghana. Its corporate governance record had never been impugned by the Bank of Ghana. We believe we have been done a grave injustice and a terrible precedent set that does not bode well for the future. We have dealt herein only with matters affecting the Board’s responsibilities that needed to be clarified to set the record straight, and this, without prejudice to whatever legal options the shareholders may wish to avail themselves of in order to get justice for the even greater harm done to them.
Otto Insurance: Home and Property Protection
Otto Insurance is a US-based insurance firm that provides a wide range of insurance services. Otto Insurance, with an emphasis on home and property protection, has been a popular solution for consumers seeking security and peace of mind in the case of property loss or damage. In this post, we will go over the services and benefits of Otto insurance, as well as how it may help you safeguard your house and belongings.
What is Otto Insurance?
Otto Insurance is a firm that provides a variety of insurance products such as homeowners, renters, business owners, and vehicle insurance. The organisation is committed to providing its clients with reasonable and dependable insurance solutions that safeguard them against loss and harm in all aspects of their lives.
Services Offered by Otto Insurance
- Homeowners Insurance: One of Otto’s most noteworthy products is homeowners insurance. Coverage for your home’s structure as well as your personal items in the event of damage or loss caused by covered catastrophes including as fire, theft, flood, and more.
- Renters Insurance: If you rent a house, Otto’s renters insurance can safeguard your personal possessions while also providing legal responsibility in the event of damage to the owner’s property.
- Otto Insurance provides auto insurance to secure your vehicle and give coverage in the case of an accident, theft, or third-party damage.
- Business Insurance: Otto provides business insurance for a number of risks, including liability, commercial property, and workers’ compensation.
Benefits of Choosing Otto Insurance
- Coverage choices: Otto Insurance provides a comprehensive range of coverage choices that may be adapted to your unique requirements. You may select the level of protection that best matches your needs.
- Personalised Attention: The organisation takes pleasure in offering excellent customer service. Their agents are accessible to answer your inquiries and explain your insurance products.
- Affordable Quotes: Otto Insurance strives to provide affordable prices that meet your budget without sacrificing coverage quality.
- Payment Flexibility: They provide various payment choices, allowing you to select the payment method that is most convenient for you.
How to Get Insurance with Otto
If you want to purchase insurance with Otto Insurance, you may start by visiting their official website or calling a local agent. The following are some general procedures to get an insurance coverage with Otto:
- Consider your requirements: Determine the type of insurance you require and the amount of coverage you require.
- Request a price online or contact an Otto representative for a personalised estimate.
- Personalise your policy: Work with an agent to tailor your coverage to your exact requirements.
- Accept the insurance: Once you’re pleased with the quotation and coverage, accept the policy and pay the applicable fee.
Maintain the following policies: Review your policy on a regular basis to verify that it is still relevant to your changing needs.
Otto Insurance is a reliable option for consumers wishing to safeguard their homes, automobiles, and companies. Otto Insurance has been a popular choice in the United States insurance industry due to its extensive selection of insurance products and commitment to client satisfaction. When it comes to insurance, don’t be afraid to look into what Otto Insurance has to offer and take steps to safeguard your possessions and your peace of mind.
Paisano Insurance: A Comprehensive Guide
Paisano Insurance is a well-known insurance company in the United States that offers a wide range of insurance products and services to individuals and businesses. Paisano Insurance has a reputation in the insurance industry for providing tailored insurance solutions. In this lengthy piece, we will delve into the different services and features offered by Paisano Insurance, supporting you in understanding how it can protect your assets and provide financial security.
What is Paisano Insurance?
Paisano Insurance is an independent insurance agency that assists clients in obtaining the finest insurance coverage for their specific needs. As an independent agency, Paisano works with a variety of insurance providers to provide consumers with a variety of insurance options. Clients may compare coverage, price, and plans to find the best fit for their unique needs.
Services Offered by Paisano Insurance
- Paisano Insurance offers auto insurance for vehicles such as cars, trucks, motorcycles, and recreational vehicles. Their coverage covers, among other things, liability insurance, collision insurance, and comprehensive insurance. Clients may tailor their insurance to meet their specific needs and budget.
- Homeowners Insurance: Protecting your home is vital, and Paisano Insurance offers homeowners insurance policies that safeguard your property, and personal belongings, and provide liability coverage. They can help you locate the right coverage whether you own or rent a house.
- Renters insurance is required if you are renting a home or flat to protect your personal items and provide liability coverage. Paisano Insurance offers renters insurance options tailored to their specific needs.
- Paisano Insurance provides general liability insurance, business property insurance, commercial automobile insurance, and workers’ compensation coverage to company owners. These strategies help businesses prevent financial losses caused by unforeseeable events.
- Life insurance is an important part of financial planning. Paisano Insurance can help consumers decide whether to get term or permanent life insurance to provide financial protection for their loved ones in the event of their death.
Benefits of Choosing Paisano Insurance
- Paisano Insurance is an independent firm that offers a wide variety of insurance providers and products. This enables consumers to choose the coverage that best suits their needs and budget.
- Paisano Insurance’s knowledgeable agents provide expert advice to consumers as they navigate the complex world of insurance. They can answer questions, provide recommendations, and assist you in making informed decisions.
- Customised Solutions: Because each client’s insurance requirements are unique, Paisano Insurance specialises in developing solutions to meet those requirements. They look for the ideal match for you, whether it’s auto, home, business, or life insurance.
- Paisano Insurance works hard to obtain competitive prices for its customers, allowing them to save money on insurance premiums without sacrificing coverage quality.
Getting Insurance with Paisano Insurance
Paisano Insurance makes it simple to acquire insurance:
- Assess Your Needs: Determine the type and amount of coverage you require based on your circumstances and risk factors.
- Request a quotation: Contact Paisano Insurance or visit their website to acquire a customised insurance quotation. Their representatives will produce a pricing for you if you supply the necessary details.
- Compare and Choose: To make an informed decision, compare coverage options, prices, and terms from several insurance carriers.
- Purchase Your Coverage: After deciding on the best insurance coverage for you, fill out the necessary paperwork and pay your first premium.
- Regular Review: Check in with Paisano Insurance on a regular basis to confirm that your insurance policies are still meeting your changing needs.
Paisano Insurance is a reliable partner in acquiring insurance coverage that meets your specific needs. They provide a wide range of insurance products to protect your belongings, loved ones, and peace of mind, with a focus on choice, flexibility, and personalised service. Paisano Insurance is an excellent option for comprehensive, tailored, and reasonable insurance solutions for your insurance needs.
Factors Influencing Your Car Insurance Premium
Car insurance rates are not uniform; they can vary substantially across people. Insurance companies use a number of factors when determining the cost of your vehicle insurance policy. Understanding these factors is crucial for receiving the best coverage at the best price. In this comprehensive essay, we will look at the primary factors that influence your vehicle insurance quote.
Your driving record has a significant impact on the cost of your vehicle insurance. Insurance companies look at prior accidents, driving violations, and claims history. A clean driving record with no accidents or violations often results in lower premiums; however, a history of accidents and penalties may result in higher rates.
Age and Gender
Age and gender are typically considered when deciding vehicle insurance prices. Drivers who are young and inexperienced, particularly men, pay higher rates since they are statistically more likely to be involved in an accident. Drivers’ rates tend to reduce as they gain experience and reach middle age.
Your geographic location is a significant consideration when determining your auto insurance quote. Insurance prices are higher in regions with high crime rates, heavy traffic, or an accident history. Rural towns, on the other hand, often have lower premiums due to fewer accidents and lower crime rates.
Vehicle Type and Model
The brand, model, and year of your automobile have a direct impact on your insurance quote. High-performance vehicles, premium vehicles, and newer models generally cost more to insure due to higher repair expenses and theft rates. Safety features and the vehicle’s safety record can have an impact on rates.
Usage of the Vehicle
The way you drive may have an impact on your insurance price. Cars used for frequent commuting or commercial purposes often have higher premiums than cars used for pleasure or on occasion. Mileage and the length of your daily journey are other crucial factors to consider.
Coverage and Deductibles
The kind and level of coverage you choose has a significant impact on your rate. Insurance with higher coverage limits and additional features (such as comprehensive and collision coverage) will cost extra. A higher deductible can lower your premium, but it also means you’ll have to pay more out of pocket if you file a claim.
In certain states, insurance companies use your credit score to determine your rate. A good credit score may result in lower rates, whilst a poor credit history may result in higher rates.
When compared to single drivers, married folks often pay less for insurance. According to studies, married persons are less likely to engage in risky driving practices.
Your driving history may have an impact on your premium. New drivers frequently pay higher rates, although experienced drivers may be eligible for discounts.
Your insurance rate may rise if you have a history of submitting repeated claims. Insurance companies perceive frequent claims to be a greater risk.
Discounts and Bundling
Insurance companies typically provide discounts for a variety of reasons, including having multiple policies with the same company (bundling), completing driver safety classes, maintaining a clean driving record, and putting anti-theft technology in your car.
Occupation and Education
Some insurers evaluate your work and education level when calculating rates. Lower rates may be associated with certain vocations and levels of education.
What element has the greatest influence on insurance premiums?
The individual’s driving record is often the most influential element in insurance prices. Your driving record, including accidents, traffic tickets, and claims, has a substantial influence on the amount of vehicle insurance you pay. Insurance companies evaluate your risk as a policyholder based on your driving record.
Here’s why your driving record is so important:
- Risk Assessment: Insurance companies utilise previous data to determine your chances of being involved in future accidents or submitting claims. A clean driving record with no accidents or infractions indicates a reduced risk, which translates to cheaper rates. A history of accidents, traffic fines, or claims, on the other hand, indicates a higher risk and may result in higher insurance premiums.
- Data consistently demonstrate that drivers having a history of accidents or traffic offences are more likely to be involved in future incidents. Insurance firms base their premium rates on this information.
- Legal Requirements: Your driving record is particularly important since insurance firms are frequently legally required to examine your prior driving conduct when setting premiums. set accidents or infractions, for example, may remain on your record for a set number of years, and insurers are compelled to consider them.
While your driving record is a major influence on insurance costs, other factors such as your age, location, car type, and policy selections also play key roles. Insurance companies use a mix of these criteria to measure risk and calculate your premium. As a result, keeping a clean driving record is one of the most efficient strategies to keep your insurance prices low.
A number of factors influence your vehicle insurance rate, many of which are within your control. Understanding these features will enable you to make more informed judgements about coverage and cost reduction. By having a solid driving record, shopping around for quotes, and taking advantage of any discounts, you may get the best auto insurance coverage to meet your needs at a price that matches your budget.
You have no authority in court – Judge ‘fires’ OSP
Asante Kotoko to travel on a European training tour in Germany, Switzerland, and Italy ahead of the 2024/25 season
Chinese national and six others detained for mining in the Oda forest reserve
Heavy security in court as NAM1 pleads to new charges
Residents in Senya Bereku clashes with the military over disputed land
I slept with 300 people in a year – detractors call me ‘disgusting,’ but I feel powerful
With a victory over Essiam Socrates on match day six, Will Jonina Football Academy secure a comfortable spot on the League log?
I’ll make sure Matthew Nyindam gets the Kpandai seat – Nyamah
Some unusual qualities men want in a woman
Hearts of Oak to play home games in Kumasi following the closure of Accra Sports Stadium
Akufo-Addo pardons eight Chiana SHS students who insulted him
Audio: Richard Attah’s wife narrates how ‘Aki and Pawpaw’ plotted the sack of Samuel Boadu
Video: I will marry 20 wives and have 10 concubines – Osofo Ajagurajahon Gh One TV with Serwaa Amihere
Reggie Rockstone vs Bongo Ideas on Twitter… Davido sends a DM to notorious Bongo Ideas
Captain Smart declares Bawumia as next NPP flagbearer as he explains why he sacked Ras Mubarak on set
General News5 days ago
I’ll make sure Matthew Nyindam gets the Kpandai seat – Nyamah
General News3 days ago
Asantehene makes history as first black monarch to appear in a British Pirelli calendar
General News4 days ago
Aisha Huang sentenced to four years and six months in prison and fined GH¢48,000
Ghana Football4 days ago
Hearts of Oak Board explains why Martin Koopman was hired
Sports2 days ago
Santos relegated to second tier after a dismal season
Politics6 days ago
Bannerman loses Odododiodoo, Hadzide and Barbara Oteng Gyasi win big in NPP Parliamentary Primaries
Politics6 days ago
Nyamah loses Kpandai, Okoe Boye, Akosua Manu, and Eugene Arhin win NPP Parliamentary primaries
Politics6 days ago
NPP Primaries: Nana Ama Dokua wins Okaikwei North parliamentary elections