Closure of UT Bank was partly politically motivated – Kofi Amoabeng
Mr Prince Kofi Amoabeng former Chief Executive Officer of the defunct UT Bank believes his decision not to align strongly to any political party contributed to the collapse of his bank.
He revealed that considering the performance of the bank at the time government could have bailed it out rather than force its closure.
According to him, his decision not to dabble in the murky Ghanaian political waters indirectly positioned him as anti-government.
“I don’t belong to any party… The interesting thing is that depending on who is speaking, they push you to the other side. Throughout the whole UT thing depending on who is in power, I am [considered as being] on the other side,” he said.
He cited how partly the political issue contributed to the bank’s closure by stating that while in the era of the National Democratic Congress the bank received some support to stay afloat, the New Patriotic Party believes it would be better if the bank was closed down.
Besides the closure of his bank, he felt pained by the fact that some banks were supported in their dire situations while others were closed down.
“The bank wasn’t doing that well at the time but the way the government acted, some banks were helped, some banks were closed. That is what irritates me,” he stated.
He defended his stance by stating that, based on the unique work the bank had done and considering its exploits and reputation internationally, it would have been better the government had at least saved the bank.
“At UT, we created a Ghanaian brand which was respected internationally so to come to power to kill a local brand which is admired and used internationally [wasn’t the best]… You can bail it out and that is common [practice]. Initially, that was what was happening but that was the NDC time… For me, not because of my personal interest but I think for the country, we should have bailed it out,” he said.
During the era of cleansing the banking sector in Ghana, the license of UT Bank was revoked by the Bank of Ghana and the Ghana Commercial Bank was instructed to take over its operation because it had severe capital impairment.
Some Provisional figures revealed by the central bank pointed out that the total liability of UT Bank stood at GH¢850 million while its total asset was pegged at GH¢112 million.
However, Mr. Amoabeng categorically stated that he did not squander any of the bank’s money but the bank’s woes were largely due to non-performing loans.
The matter is currently in court.
By: Stella Annan | myactiveonline.com Twitter @activetvgh
