The decision by Attorney General Dr Dominic Ayine to discontinue criminal charges against Dr Kwabena Duffuor and seven others involved in the uniBank collapse, in exchange for the recovery of 60% of outstanding assets, has ignited a fierce debate across Ghana.
While the Attorney General’s office asserts the move is in “the interest of the Republic”, critics are raising serious questions about accountability and the precedent it sets for future financial malfeasance.
The charges, which included conspiracy to commit fraudulent breach of trust, fraudulent breach of trust, money laundering, and wilfully causing financial loss to the state, stemmed from the Bank of Ghana’s 2018 cleanup of the banking sector.
uniBank was one of several indigenous banks whose licences were revoked and placed under administration by the Bank of Ghana in March 2018, subsequently consolidated into Consolidated Bank Ghana Limited (CBG) due to severe insolvency, poor corporate governance, and alleged illegal transactions by directors and shareholders.
The Bank of Ghana’s audit report indicated that shareholders and related parties of uniBank had taken out an alarming GH¢5.7 billion of liquidity support, constituting 75% of the bank’s total assets, largely through unapproved loans and advances. However, Dr Ayine explains the amount was revised downward to GH¢3.3 billion.
At the Monday, July 28 edition of the Government Accountability Series, Dr Ayine offered reasons for dropping the case, which include the following:
- GH¢2.1 billion did not involve cash outflows. In other words, money did not go out to anybody but book entries designed to make uniBank look good.
- GH¢ 0.3 billion is being pursued for recovery by the receiver through the Securities and Exchange Commission (SEC), as UniSecurities is involved.
- The criminal/civil case has persisted for over 6 years with no immediate resolution in sight.
- The complex nature of the case has delayed meaningful recoveries, and prolonged litigation could lead to further lower recoveries due to legal costs, procedural delays, the time value of money and the concealment of assets.
- Charges were legally contestable, as records showed that there was a high likelihood that the defence could have raised sufficient doubt to procure an acquittal, and if that happened, as seen in the Beige Capital case, AG would not have been able to recover even GH¢1.
- Dr Ayine claims there was no asset tracing by the previous government or asset-freezing orders before he took office, and was approached by lawyers for the accused persons. Assets depreciate and may even disappear before the prosecutor lays hands on them.
- Dr Ayine claims he was offered GH¢10 million by the lawyers of Beige Bank as a settlement, but he refused. Today, he cannot get even a cedi.
- Dr Ayine says it is illusory for anyone to think that the government can recover 100% in any case due to depreciation and other factors.
- Dr Ayine says the conviction of Dr Duffour and other accused persons was not guaranteed.
- The AG has managed to recover GH¢824 million in landed properties, with a plan to settle payments over a period of months.
- Monies that were held by third parties that owed UniBank, including contractors, were up to GH¢2.9 billion, but the Ministry of Finance under the erstwhile administration did not pay the contractors to satisfy the debt obligation.
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