Stop stampeding decision makers to jail bank directors; Kulendi tells critics

Stop stampeding decision makers to jail bank directors; Kulendi tells critics

A private legal practitioner has condemned what he says is the indecent haste with which some Ghanaians are crucifying directors of failed banks even without the benefit of the full facts.

Yonny Kulendi insists the attempts by Ghanaians to “stampede decision makers” into jailing people may invariably end up with “failed outcomes,” as has happened in the past.

On the matter of the failed banks, Kulendi agrees with the government objective of ensuring a “robust well regulated and efficient banking institution” while making the issue of criminality a “lesser objective.”

Speaking on Joy FM’s news analysis programme Newsfile, Saturday, the legal practitioner was however quick to add that in the process of rebuilding the banking sector, persons found guilty of breaches must be made to face the rigors of law.


At least seven banks have gone under over the last 12 months. According to the Bank of Ghana, the regulator, the banks were completely financially distressed, some irredeemably.

UT Bank, Capital Bank had its assets taken over by the Ghana Commercial Bank in August 2017. Kofi Amoabeng

In July of 2018, five other banks- Unibank, Beige Capital, Royal Bank, Construction Bank, Sovereign Bank- were collapsed and merged into one Consolidated Ghana bank.

The regulator cited various reasons for the collapse of the banks with some of the directors said to have engaged in acts of criminality.

A Boulders Report on the collapse of Capital and UT Banks made adverse findings on the part of the directors of the two banks.

While it cited Prince Kofi Amoabeng, Board Chair of UT Bank as having taken a whopping amount of ¢5million meant for the servicing of a loan without disclosing it to other Board members, it also accused the CEO of Capital Bank Ato Essien of using ¢80m depositors’ funds as a personal piggy bank.Both men have challenged the outcome of the financial autopsy report presented in the Boulders Report but many Ghanaians feel the content of the report is sacrosanct. Dr OtabilBoth traditional and social media have been flooded with criticisms of the directors and Board Chairmen of the seven banks.Any attempt by any of the directors to explain or clarify their position has been met with some amount of cynicism.Pastor Mensa Otabil who was the Board Chair of Capital Bank until its collapse has been the most vilified.His statement, part of which said his “position was a non-executive role. I was therefore not involved in the […]

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