UniBank says it has abandoned plans to consider the option of arbitration over the management takeover of the institution.

This was after the Bank earlier disclosed to Reuters News Agency that it wants to look at the option of seeking arbitration.

He added that “we intend to go to arbitration, the central bank did not meet the requirement to notify them before announcing the takeover.” 

But speaking to JoyBusiness, a lawyer for Unibank, Dr Dominic Ayine said they are no longer going that way because the new administrators for the Bank have been very corporative. 

He, however, insist they still have issues with how the whole process was carried out.

“Well, it is not about not having a case to be made, because a case could definitely be made in terms of the way the Bank of Ghana served the notice and the manner in which it conducted its affairs.”

He added that Unibank should have been given an opportunity to be heard before the action is taken.
 
On calls for the directors to be prosecuted, Dr Ayine said they would be ready if the case was made.

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Takeover

The Bank of Ghana (BoG) on Tuesday announced a surprise takeover of the management of the private bank.

The Governor of the central bank, Ernest Addison, explained at a press conference that the takeover is due to challenges facing the bank.

He mentioned weak supervisory standards and weak operations as the cause of the challenges.

In a statement released after the press conference, the BoG said Unibank "persistently suffered liquidity shortfalls and consistently breached its cash reserve requirement."

Audit firm, KPMG, has been selected to manage the troubled bank for six months.

Banking services resumed midday on Wednesday.