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Ghana charges CEOs over banking crisis that cost $2.2bn

The former Beige Bank CEO and UT Bank founder have appeared in court.
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Ghanaian prosecutors charged the chief executive officers of two defunct lenders for alleged crimes that contributed to a banking crisis that cost the West African nation 12.5-billion cedis ($2.2 billion) in bailouts.

Michael Nyinaku, the former CEO of Beige Bank Ltd., appeared in the Accra Circuit Court on Tuesday on counts of stealing 341 million cedis and money laundering, court documents showed. Prince Kofi Amoabeng, who founded UT Bank Ltd., appeared for money laundering as well as theft charges of 51.3 million cedis and $8.6 million, according to a separate court filing.

Both men have previously denied any wrongdoing.

The scale of Ghana’s banking crisis came to the fore when the central bank started an industry cleanup in August 2017 to remedy years of poor governance and weak regulatory oversight. It left the government with little choice but to safeguard the savings of about 4.6 million depositors with public funds and protect jobs at insolvent banks and scores of second-tier lenders.

“We have begun bringing those responsible for the banking crisis to justice,” President Nana Akufo-Addo said in a post on Twitter. “The perpetrators of the crises, i.e. both regulators and individuals, will face justice soon.”

© 2020 Bloomberg L.P.

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Meanwhile in Johannesburg, the VBS reverse-robbers (robbing bank clients from within a bank using its staff and tellers) are out dinning with famous politicians and donating to political parties, to ‘grease their lips and loins’and lull them to sleep. Allowing for a deep hiding of stolen assets and transferring them to relatives and into blind trusts. While Mkhwabane and the rest are resting and throwing false flags, and political leaders who are beneficiaries point fingers at shining objects, except towards themselves.

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