UniBank Board Approved Loans Despite BOG’s Warning – Report

It has emerged that the board of the now-defunct uniBank, did not follow any of the key good corporate governance rules outlined by the regulator of the financial sector, the Bank of Ghana.

Even when the central bank had cautioned the board of uniBank not to advance loans, the board went ahead and granted loans to parties related to the company under circumstances that hurt the financial base of the company.

“The Bank procured and paid approximately GHS57.6 million to related entities for goods and services from January 2017 to date, without an objective assessment for value for money after a BoG directive to cease giving loans in October,” a new document sighted by Citi News has stated.

Also, the bank is said to have incurred staff cost of approximately GHS7.4 million that had been seconded to related party companies from January 2017 without it being refunded.

According to the document, even though uniBank’s governance and operating framework were broadly fit for purpose, the board and management did not adhere to the established framework.

It pointed out that, “the endemic culture of non-compliance contributed to the continuous deterioration of capital, notably in more recent periods, and contributed to the bank’s inability to operate a profitable and compliant business.”

By:  citinewsroom.com