The Ghana Amalgamated Trust (GAT) has dismissed allegations by Bawku central deputy Mahama Ayariga that there are alleged negative activities going on at GAT.
Mr. Ayariga had accused the GAT leadership of improperly taking advantage of some of the banks that needed financial assistance to enable them to meet the new minimum capital requirement set by the Bank of Ghana during the cleanup exercise. banking sector.
âObviously, someone is engaged in a project to pass the added value on to other people. It is inexplicable and I ask the BoG to examine, to stop the process, if they persist and continue, I will ask for the support of my colleagues in Parliament, âhe said on New Day. on TV3 on Thursday 23 December.
He had earlier in a statement accused the GAT of taking unfair advantage of some of the banks that needed financial assistance to enable them to meet the new minimum capital requirement set by the Bank of Ghana during the financial year. cleaning up the banking sector.
The GAT was founded by the Ghanaian government on the basis of a private equity model to support some indigenous banks.
Its first mandate was to raise funds to recapitalize selected indigenous banks that were unable to meet the new increased minimum capital requirement by the deadline set by the BoG as part of the financial sector cleanup. As part of the recapitalization, GAT holds stakes in the banks in which it has invested.
But in a letter to the BoG, dated December 20, 2021, Ayariga noted that the GAT is currently weakening the corporate governance structure in some of the existing banks.
This situation, he said, requires the attention of the central bank.
âRecent events have necessitated the writing of this letter to your good offices to draw your attention to certain relevant issues.
âThese issues which tend to hurt the banking sector concern the Ghana Amalgamated Trust (GAT) and its relationship with the various banks in which it has invested in the course of 2019 to allow banks to meet the minimum capital.
âGAT engaged the various banks at some point in 2019, when the banks urgently needed a capital injection to meet the BoG’s new recapitalization requirement. Although some of the banks were, prior to the closing of transactions, described as âsolvent, well governed and well managedâ, these banks were constrained by the circumstances to have to meet the minimum capital requirement of the BoG within the allotted time frame. to accept the GAT officer.
“The GAT was aware of the difficulties encountered by these banks and took undue advantage of them by knowing perfectly well and without the knowledge of the banks how it intends to recover its participation in the capital of the banks”, he declared.
He added: âSince the competition of the transaction, the GAT has engaged in various negative acts which, collectively, seem to aim at weakening the capacity of corporate governance of some banks, thus making them vulnerable within the financial sector. .
But in response to his comments, the Managing Director of Ghana Amalgamated Trust, Mr. Eric Otoo, said the allegations were unfounded.
“So to clarify the question, I saw a letter circulating on social networks by the deputy [Mahama Ayariga], as you indicated. And just to clarify, in the letter the MP indicates that GAT is selling shares of the banks that GAT has invested in, as part of the government’s political agenda, and it actually is not.
âSo to present the real facts, GAT is not selling at this point, not selling shares of those banks that GAT has invested in,â he told Accra-based Joy FM.