UT, Capital banks’ assets on sale

Audit and assurance firm, PricewaterhouseCoopers (PwC), is seeking buyers for landed properties of the UT and the Capital banks to help mobilise funds to pay off their creditors.

The four properties situated in Tamale in the Northern Region and some suburbs of the Greater Accra Region were the only landed properties owned by the banks prior to their collapse on August 14.

One of the joint receivers at PwC, Eric Nana Nipah, told Graphic Business on February 18 that the properties were one of four categories of assets owned by the two failed banks.

“That is all that they have that was owned by them. Other landed properties are collateral that the borrowers are in default and we cannot just sell; we have to go through some process, including legal ones. So what we are selling are those that are owned by the banks,” he explained in an interview.

A banking consultant and former Deputy Governor of the Bank of Ghana, Emmanuel Asiedu-Mante, said the development showed that the operations of the two defunct banks were “indeed not profitable” partly due to the alleged misappropriation of funds by directors.”

Although Mr Nipah declined to mention how much the banks’ assets and liabilities were at the time of their insolvency, he said: “at the time we came in, their assets were not sufficient to cover their liabilities.”

He mentioned the other assets as loans, which constitute over 80% of the entire asset base, office shuttle — and motor vehicles.