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Kofi Amoabeng explains why UT Bank was closed down

 

 

 

Captain Prince Kofi Amoabeng (Rtd), CEO of defunct UT Bank, has been explaining why his financial institution was closed down by the government of Ghana.

According to him, UT Bank at the time was going through problems and the government thought it wise that it was impossible to be bailed, hence the decision to close the bank down.

 

 

Speaking on Peace FM’s Kokrokoo Morning show, Amoabeng indicated that, looking at the trajectory of events that unfolded, he has never been bitter, else, he would have died by now.

“The truth is if the bank was fully functional, meeting all the capital requirements from its regulators, the government would not have closed down the bank. But the bank was going through problems and every business goes through problems; it doesn’t matter how big you are.

 

 

“It is the government that will decide to close it down because it is that bad or it should be bailed out because it is dear to the country; this is all government’s discretion on behalf of the people.

“For UT’s position, the government decided that where the problems of the bank had reached, it is impossible to bail the bank out, therefore, it needs to be closed down and so be it; it was closed down,” Prince Kofi Amoabeng explained on Peace FM, Monday, November 15, 2021.

 

 

When asked by the host, Kwami Sefa Kayi, if he is not bitter, Kofi Amoabeng responded, “no! no!! no!!! looking at my age, if I had harboured bitterness in me, I would have died a long time ago.”

“Whatever that happens to me, it has happened and you get on with your life,” he stressed.

Captain Prince Kofi Amoabeng (Rtd) was at Peace FM to advertise his new book which chronicles the successes and twilight of his company.

The book titled ‘THE UT STORY: Humble beginnings’ seeks to teach the youth and all Ghanaians about the hidden realities of UT Financial Services and some moral lessons for young entrepreneurs.

The book also highlights a secret of how Ken Ofori-Atta and his partner at Enterprise Insurance, Keli Gadzekpo, requested a loan from UT Bank. This was before the collapse of the institution.

The book disclosed that Mr. Ofori-Atta came to UT Financial Service “bearing their shares in Enterprise Insurance as collateral for a loan”.

Kofi Amoabeng authenticated the claim saying, “I don’t lie or you think they will say it’s untrue. It’s not just about me. I wasn’t personally giving out the loans. I had a system and a structure and institution that granted the loans, so my entire staff were aware. So, it wasn’t a situation of I took him to a room like it was done secretly. No! This is a UT Financial Services issue.”

Background

The BoG revoked licences of UT Bank Ltd and Capital Bank Ltd and approved a Purchase and Assumption (P&A) transaction with GCB Bank Ltd that transferred all deposits and selected assets of the two banks after they were found to be deeply insolvent.

The Central Bank subsequently revoked the universal banking licences of five banks including UniBank Ghana Limited, Construction Bank, Sovereign Bank, Royal Bank and Beige Bank and issued a licence to a newly created bank – Consolidated Bank Ghana Limited – which is wholly owned by the Government of Ghana.

BoG further revoked the licenses of 23 insolvent savings and loans and finance house companies.

The companies are GN Savings and Loans Ltd., Ideal Finance Ltd., IFS Financial Services Ltd., Legacy Capital Savings and Loans Ltd., Midland Savings and Loans Company Ltd., Sterling Financial Services Ltd., uniCredit Savings and Loans Ltd., Women’s World Banking Savings and Loans Co. Ltd., Accent Financial Services Ltd. and Adom Savings and Loans Ltd.

Others are AllTime Finance Ltd., Alpha Capital Savings and Loans Ltd., ASN Financial Services Ltd., CDH Savings and Loans Ltd., Commerz Savings and Loans Ltd., Crest Finance House Ltd., Dream Finance Company Ltd., Express Savings and Loans Company Ltd., the First African Savings and Loans Company Ltd., First Allied Savings and Loans Co. Ltd., First Ghana Savings and Loans Co. Ltd., First Trust Savings and Loans Ltd. and Global Access Savings and Loans Company Ltd.

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