Last Updated- Apr 4, 2009 5:27 - - 0 Comments


How AmalBank’s lawlessness causes diplomatic row

amalbankIt began in early March when the central bank, during a routine inspection visit to  AmalBank became concerned about the bank’s operations. Critically, it had uncov­ered that some dealings in foreign exchange by the bank were against the Foreign Exchange Act 2006.

Also, there were lapses in the general operational activities of the bank, as well as repeated deposits of fake currencies into the bank’s vault account with the central bank.

According to a letter from the Bank of Ghana (BoG) to the Board Chairman of AmalBank, which has been sighted by Graphic Business, the recent violations of banking law by the bank were not the first time that the bank had totally disregarded due process. In fact, BoG had uncovered similar problems in what seems to have brought these prob­lems to a boil however, is the regular lodg­ments of fake currencies with the central bank in the last quarter of 2008 and early this year. “The repeated violations are unaccept­able and cast the bank in a very bad light”,

BoG noted in its assessment report adding that, “This is particularly serious given the assurances management gave to the Central Bank that such practices would not recur, when the first spate of violations were brought to the attention of management and the AmalBank’s board”.

Particularly, the Managing Director of the bank, Mr Oluwale Ajomale was found to have engaged in several acts of foreign cur­rency malpractices.

The letter stated that, “indeed the manag­ing director Mr Oluwole Ajomale, himself engaged in the malpractice of making pay­ments of forex cash into his foreign currency accounts and making transfers in disregard of regulations”.
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The correspondence accused the manag­ing director of making “direct transfer of funds ostensibly in settlement of goods up to US$25,000 without initial or subsequent documentation contrary to Bank of Ghana Notice No BG/GOV/SEC/2007/3 dated 15/3/2007″ .

Similar transfers took place over the peri­od, according to the BoG review. “Transfers of funds among some foreign currency account holders, which accounts were fed either with funds from abroad or export proceeds that should have been credited to for­eign exchange account not foreign currency accounts, contrary to the Foreign Exchange Act 2006, which restricts dealership in for­eign exchange to licensed institutions such  as banks”, according to the letter.

It also accused the bank of “failure to dis­close in the BSD return on 20 largest payments across the counter, the payments of cash withdrawal of US$140,000, in breach of the Banking Act, 2004, Act 673″.

As a result of these violations, BoG has imposed penalties. “In the case of the bank, a total penalty of GH¢48,000 is hereby imposed, while the managing director is to pay GH¢18.000 fine,” the BoG sanctioned.

The letter further directed the board to find an immediate replacement for the
managing director whose conduct consti­tutes a serious violation of the Banking reg­ulations and the Foreign Exchange Act and undermines the trust and confidence  reserved for a person in that position”.

Diplomatic scare?

The actions of BoG and the media slant given to the problems of the bank have not gone down well with the Nigerian High Commissioner, Senator Musiliu O. Obanikoro. According to him, relations between Ghana and Nigeria were strong and there­fore, the media should not insinuate that issue involving a Nigerian, to damage the economic and political ties enjoyed by both countries.

Addressing a news conference in Accra Senator Obanikoro said Nigeria was the number six foreign investor in Ghana and, according to him, official investments in Ghana by Nigerians amounted to US$l billion last year, stating further that other benefits Ghana had enjoyed from Nigeria included theWest African Gas Pipeline project, a 90-day oil credit for Ghana last year and the expansion of banking activities in the country.

“We are working closely with Ghana to create a better Ghana and vice versa and the media must not put this in jeopardy”, he added.

He was of the view that passing derogatory remarks about Nigerians on the airwaves was unhealthy for both countries, explaining that generalizing every bad thing that a Nigerian did to affect all Nigerians could trigger enmity, which when not checked, could degenerate into something else.

According to the High Commissioner, the media should not dwell on one-sided reports but rather ensure that they stated both sides of the story.

Other Nigerian and Ghanaian businessmen have also called for the media bashing of all Nigerians to stop. They were of the view that it would be seriously damaging to the Ghanaian economy in particular should Nigerian businessmen decide to turn their back to the country.

The High Commissioner himself recognises the fact that not all Nigerians have comported themselves well in the country, and has therefore called on all Nigerians living in the country to be law-abiding and cooperate with the government to fish out the bad ones among them.

“I will never condone the irregularities of anyone and any perpetrator of any crime should be made to face the full rigours of.the law when found guilty,” he warned.

Meanwnile, officials of AmalBank have stressed emphatically that they have taken the necessary steps to comply with the recommendations of the central bank.

The officials, Messrs Rodney Oppong Nyantekyi, Head of Risk Management; Charles Ampofo, Head of Corporate Affairs and GodwyIl Ansah, Company Secretary and lawyer, made the bank’s position known when they appeared as guests on Joy FM’s ‘Super Morning Show’.

Credit: Mustapha Suleiman

Source: GB

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