Prof. Dinkum has taken a swipe at former President John Dramani Mahama for claiming to restore the capital of indigenous businesses in the financial sector and ensure that they are given a fair chance to succeed when given the mandate as the president of Ghana again.
During a meeting with Global President of Groupe Nduom, Dr. Paa Kwasi Nduom, the flagbearer of the National Democratic Congress (NDC), John Mahama stated that the closure of banks like GN Bank and UT Bank have had a significant impact on the employees and the communities they served
Adding that the government’s approach to the banking sector cleanup was hasty and lacking in necessary considerations for the social impact it would have and that he will find a lasting solution that benefits all involved.
But Prof. Dinkum believes the former President is just hungry for power since his claims can not work
“Mahama is literally a dinosaur. He has the symptoms of constitutional and legal puniness. You can’t pine for the presidential ukase again, when you are legally and constitutionally spineless. This is like, apprising the people that, you want to get spliced, meanwhile you are sexually effete. Your holy grail to reinstate all the crumbled banks is a bubble _ it is more like telling me, black and white are colours, not knowing that, technically, they are shades instead. The pusillanimity of your benightedness in stoking for votes has been smothered.” He said.
“I want to refute your assertion that, you would bring those collapsed banks into existence and subsequently tackle on the plea relaid by Paa Kwesi Nduom to you.” He added.
Below is the full statement
JOHN MAHAMA EXHIBITIONS OF SOPHISTRIES ARE BLACK !
Re : I WILL GIVE YOUR BANKS BACK TO YOU.
John Mahama in his usual jejuneness, has couched that, he would rehabilitate all the slumped banks spawned by this current government, whereby Dr. Paa Kwesi Nduom has petitioned the former President, John Mahama to reinvigorate his collapsed bank in case, he ascends on the presidential throne again. John Mahama is a barmecide, who craves to butter up the electorates, but his endeavors may whip up in opprobrium. I do importune myself that, how did he become the President of Ghana ? Mahama is literally a dinosaur. He has the symptoms of constitutional and legal puniness. You can’t pine for the presidential ukase again, when you are legally and constitutionally spineless. This is like, apprising the people that, you want to get spliced, meanwhile you are sexually effete. Your holy grail to reinstate all the crumbled banks is a bubble _ it is more like telling me, black and white are colours, not knowing that, technically, they are shades instead. The pusillanimity of your benightedness in stoking for votes has been smothered.
I want to refute your assertion that, you would bring those collapsed banks into existence and subsequently tackle on the plea relaid by Paa Kwesi Nduom to you.
Revocation of a bank’s licence means, cancellation of its authority to engage in core banking activities—taking deposits from the public and using them to make loans.
We have seven ways by which revocation of a bank’s licence may occur and that’s ;
1) the Bank of Ghana is satisfied that an applicant provided false, misleading or inaccurate information in connection with the application for a licence or suppressed material information ;
2) the bank or specialised deposit – taking institution fails to commence business within one year from the date the licence was issued ;
3) the bank or specialised deposit – taking institution fails to fulfill or comply with the terms and conditions stipulated in the licence ;
4) the bank or specialised deposit – deposit institution carries on business in a manner which is contrary or detrimental to the interests of depositors or the public ;
5) the bank or specialised deposit – taking institution has been convicted by a domestic court or any other court of competent jurisdiction of a crime, related to money laundering or terrorist financing or is an affiliate or subsidiary of a parent or holding company which has been convicted ;
6) in the judgement of the Bank of Ghana, the bank or specialised deposit – taking institution engages in unsafe or unsound practices ; or
7) the bank or specialised deposit – taking institution persistently contravenes, the Act, the Regulations, Directives or Orders made under this Act.
In 2015, the Central Bank of Ghana called the Bank of Ghana, undertook an exercise to review the quality of the assets of banks in a report titled, ‘ Asset Quality Review (AQR) of Banks. The Bank of Ghana updated the 2015 report with 2016 data. The report pointed to 10 banks being undercapitalized whereas, GN Bank was a casualty. Subsequently, the Central Bank engaged those Banks to try to address concerns excavated by the 2015 and 2016 reports, where the new minimum capital of USD 80 million was broached. On 4th January 2019, the Bank of Ghana warranted a request to reclassify GN Bank from a universal bank to a Savings and Loans company, following its inability to assent to new required minimum paid-up capital of GH¢ 400 million by 31st December 2018. The reclassification was to amongst other things enable the institution to shrink its operations and also inject additional capital to resolve the perilous liquidity challenges it was encountering.
In spite of the above, the institution had not been able to resolve its liquidity pickles and not been able to meet the majority of conditions the Bank of Ghana foisted on them after the reclassification. The Bank of Ghana had reached the conclusion that, GN Bank was currently on a Carey street under section 123 (4) of the Banks and SDIs Act, 2016 (Act 930), been breached of its key prudential regulatory requirements. Its Capital Adequacy Ratio (CAR) was at -61%, in breach of the minimum required of 13%. It had also failed to meet the minimum cash reserve requirement of 10% of its total deposit, since the end of the first quarter of 2019.
While GN had stipulated that, government was owning its company a total amount of GH¢942.98 million of which, GH¢102.73 million constituted Interim Payment Certificates (IPCs). The Bank of Ghana’s assessment was that, IPCs totaling GH¢30.33 million only had been confirmed by the Ministry of Finance as at 6th August 2019 as owed to contractors that may be indebted to affiliates of GN. The Bank of Ghana’s supervisory assessment depicted that, even when the total outstanding IPCs amount of GH¢30.33 million was considered, it still did not address GN’s capital deficit of -GH¢683.66 million. It must be observed that, GN’s impecuniousness problems were largely ascribable to overdraft and other facilities it extended to its related parties, who were other companies in the Groupe Ndoum network of businesses, under circumstances that transgressed relevant prudential norms.
Of particular interest were the funds totalling GH¢761.55 million that GN Bank as it then was, placed with its sister companies Ghana Growth Fund (Gold Coast Advisors) and Gold Coast Fund Management Limited (now Blackshield Capital Management), both licensed by the Securities and Exchange Commission.
In addition to GN’s insolvency and liquidity challenges, the Bank of Ghana had found other key regulatory violations such as the following:
-The institution’s adjusted Net worth of negative GH¢30.70 million as at end May 2019 signaled that, its paid up capital was impaired in violation of Section 28(1) Act 930.
-The institution’s adjusted capital adequacy ratio of negative 61.20% as at end May 2019 was in violation of Section 29(2) of Act 930.
-Contrary to section 64 (2) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), the institution’s exposure to its related party had incessantly been above the regulatory limit of 25% of net own funds (NOF). Exposures to other league companies were mainly payments made by the bank on behalf of such confederations.
The structure of GN’s balance sheet clearly showed that, the bank marshalled deposits for its related companies. The institution’s high non-performing loans (NPL) was mainly alluded to these related party exposures, which were never paid, thereby putting the deposits of its customer at risk.
The company was yet to publish its 2018 audited accounts contrary to section 90 (2) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930). Furthermore, the company did not keep accounting records in a manner which granted an errorless and definitive account of the transactions of the company, and did not therefore, show a true and pukka view of its operations.
This connotes that, GN Bank infracted the (3), (4), (6) and (7) laws under the Revocation of a bank’s licence.
Also, Mr. Mahama, the Bank of Ghana has the sole responsibility for the issuance of licences to banks and specialised deposit – taking institutions. The Banking Act, 2004 underscores the principles entailed in the procurement of a bank’s licence. Amongst, the many other procedural assessments, before the attainment of bank’s licence is that, ‘ the applicant has complied with the Act, the Regulations, directives, and other legally-binding instruments made under the Act and any conditions that the Bank of Ghana may impose ‘. Meanwhile, none of the defunct banks has shown obeisance to the Act or Regulations of the Bank of Ghana. Mr. Mahama, you have had substance in what you intimated, if the defunct banks haven’t had their licences revoked. Because, they could have petitioned the Minister of Finance in writing within 10 days after their applications have been declined under your wool – gathering presidency, but it is contrasting at this point.
Section 27(1) under the Validity and Renewal of Licence of the Bank of Ghana Act, expounds that ;
‘ A licence issued or authorization granted under this Act is valid for a period of five years, subject to renewal until the licence or authorization is suspended or revoked ‘. This also implies that, once your licence has been revoked, you can’t seek for renewal as well. What you could do as being your phantasmic President, is to let them satisfy and adhere to the Act/Regulations of the Bank of Ghana _ anything apart from this, will put those banks in lethargy still, since, you can’t massage their Regulations within your own discretion.
Your flanker has been exposed again : it was chicanery and schlenter pledge. We shall continue to shoot full of holes in any codology of yours.
By : Prof. Dinkum.
(The Buzzing Rapine of Erudition)
E – mail : dinkumchoice@gmail.com
Source: Elvisanokyenews.com
