A number of government agencies having accounts with the embattled Unibank Ghana are facing serious challenges with request to pay their suppliers due to a Bank of Ghana (BOG) directive to unibank not to pay out any government agency related investments over the past three weeks.
A source at Unibank told the paper that there is pressure on certain agencies whose cedi with their suppliers are running out.
According to the source, the agencies (name withheld for now) are facing a cash crunch since their funds are locked up with unibank and the directive by the BOG means the agencies cannot access their funds as at now.
Earlier this year in March, the Governor of the Bank of Ghana, Dr. Ernest Addison appointed KPMG to handle the affairs of unibank in exercise of its power under sections 107 and 108 of the Banks and Specialized Deposit-Taking Institutions Act,2016 (Act930).
Section 107 of Act 930 empowers the Bank of Ghana to appoint an official administrator to take official control of a bank when its Capital Adequate Ratio (CAR) has fallen below 50% of the required minimum of 10% (i.e. below 5%).
Under section 107 of Act 930, the official Administrator is authorized to exercise a variety of powers to rehabilitate and return the bank to regulatory compliance within a period of six months, at the end of which the bank will be returned to private ownership and management.
The challenges faced by the Unibank have been described as part of the legacy issues in the financial sector attributed to week economic growth and poor corporate governance and risk management practices.
BOG is expected to allow the administrator of Unibank to authorize the payments to the government agencies to enable them honor their obligations to their suppliers.