Receiver of defunct UT and Capital bank in court over GHC850 million assets

Speaking on Accra-based Citi TV, Mr Nipah said the suit had become necessary because most of the processes to obtain the million realised from the assets had to do with matters of the law courts which he had already started.

“No, we haven’t finished. We have come a very long way with UT and Capital Bank and we have been doing a lot of work. I will say that in terms of amounts realised till date is more than GHC600 million. We could have done far more but the challenge we have is that the value of most of the assets subject to realisation have legal implications and are in court. So you realise that a great chunk of the value of the assets sit in legal suits and so we have to go through judicial processes.”

If you take Capital Bank, for instance, we are suing some of the shareholders and the claim value is over Ghc750 million and we are in court on that,” he added.

The shareholders of Capital Bank have been sued to obtain an amount in excess of GHc 750 million. Meanwhile, has been sued for money in excess of GHC100 million.

“If you take the case of UT Bank, we are suing related companies associated with UT Bank — UT Holdings and we are claiming an amount in excess of GH100 million”, Mr. Nipah indicated.

Other challenges

Mr. Nipah further stated that one of the major challenges he has had to be deal with is debtors who have failed to pay monies in excess of GHC300 million owed UT Bank.

“We also have recalcitrant debtors, some owe UT Banks in excess of GHC300 million and we are in court for this as well. We are in various stages of the legal process. So there is a lot happening but the drive is more legal.”

Bank of Ghana revokes the licence of UT and Capital banks

In August 2017, the Bank of Ghana (BoG) revoked the licenses of the two banks due to severe capital impairment and handed them over to GCB Bank.

Mr. Nipah of PriceWaterCoopers (PwC) was later subsequently appointed as Receiver of the two companies.