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Stinky Deals At GCB
 
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11-Oct-2016  
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DAILY GUIDE has uncovered a report which claims that some officers of Ghana Commercial Bank (GCB Bank) are using the financial institution to cut deals for themselves in a move seen as a serious conflict of interest.

The bank, which has been in the news lately following its overexposure in respect of unsecured loans, according to the report, is bleeding and gasping for air as some officers reportedly use their official positions to fleece the bank.

One of the officers, who heads the Corporate Banking, is said to have benefited from a customer who was given GH¢34 million loan with inadequate security. The customer is struggling to service the loan.

After granting the loan to the bank’s client, the officer in question was allegedly rewarded with cement business and a truck to aid the business.

Checks indicate that the bank staff quickly registered a company named Trellikon Limited which deals in cement at Afienya, Mataheko near Tema. He is alleged to be receiving his supplies from the client who is a big time cement dealer.

Documents obtained at the Registrar General Department indicate that the company – Trellikon Limited – was incorporated on March 15, 2016 and commenced business in March 23, 2016. The company has one Francis Akornotey as Director/ Secretary and George Fuachie as Director and sole shareholder.

According to the report, the Kumasi-based cement distributor had a hand in the operation of Trellikon, supporting him with products as well as truck to enhance the operations. The Hyundai Mighty truck with registration number AW 136 – 15 and chassis number KMFGAI7EPV127941. It was registered last year in the Ashanti Region in the name of the GCB client but is now working for the GCB staff’s company – Trellikon – at Afienya.

The GCB staff is said to be enjoying the support of Board members of the bank chaired by Daniel Owiredu.

Mr Owiredu is the chairman of the Credit Risk Sub-Committee of the bank, which approves big loans to customers.

The chairman insists that he wouldn’t step down from chairing the ‘large Credit Committee,’ even though there is apparent conflict of interest situation since he would be presiding over his own decision.

Abnormal Loans

A credit report sighted by DAILY GUIDE, which covers the period between July, 2015 and July, 2016, clearly points to some abnormal loan facilities advanced to some clients.

The loan facilities, which are above GH¢2 million, include overdrafts, short, medium, long term loans, seed fund guarantees, among others.

Within the period, the bank granted loans to the tune of GH¢ 993,336,250 million and $76,935,103.90 million respectively.

Shockingly, most of the credit facilities involved   non-collateralized loans and huge loans with very minimal security.

One  of the  most bizarre developments at the bank has to do with the fact that  GCB reportedly advanced four different kinds  of  huge credit facilities  to  one  client on the same date and time – August  5, 2015.

These include a long term loan of GH¢2,756, 250; medium term loan of GH¢4,700,000, an overdraft of GH¢5,000,000 and a guarantee of GH¢2,000,000, with very minimum security.

Another client was also granted a revolving short term loan of $3,500,000 , a short  term loan of  GH¢3,850,000 and  another short term loan of  $2,000,000 on the same day – February, 2016.

This client had a personal guarantee and a property reportedly worth $2 million as collateral.
 
 
 
Source: Daily Guide
 
 

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