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uniBank ‘deceived’ AfrExim to approve $25m loan

Accounting firm, KPMG, is accusing officials of the defunct uniBank of making false representation to secure a loan of $25m from African Export-Import Bank (AfrExim).

KPMG in a 27-page report said uniBank upon applying for the facility explained that it was going to lend the money to LHS and the Bulk Oil Storage Transportation (BOST), but diverted it for other bank activities when the loan was approved.

“The bank utilised the facility arranged for its own purposes and not as indicated in the [refinancing facility] agreement,” the report revealed.

It further disclosed that the uniBank had failed to pay the loan as indicated in the terms as officials of the bank misappropriated the funds.

uniBank founded by former Finance Minister, Dr Kwabena Duffour, is also accused in the report of using his parent company HODA Holding, which means “House of Duffour Assets” to finance “suspicious” transactions.

These are some of the non-compliance issues which the KPMG report raised as dubious activities which led to the collapse of the bank.

And not even GHC2.2bn pumped into uniBank within its final 24 months by the central bank could revive the struggling indigenous bank.

In August 2018, the Bank of Ghana announced uniBank was no more.

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Source: www.asempanews.com

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