A confidential credit report of Ghana Commercial Bank (GCB Bank) available to DAILY GUIDE paints a gloomy picture about the bank’s ability to retrieve huge loans granted to some business concerns and individuals.
It confirms reports that the bank had approved and advanced uncollateralized loans to some customers who have links with some members on the GCB Bank board.
GCB Board Chairman, Daniel Owiredu, has indicated that the bank as a listed company, followed strict procedures for all operations over the past several years and continues to do so, blaming the media for stoking fire where there is none.
“It is unfortunate that these media houses did not take the time to verify these machinations with GCB or the board before printing,” Mr. Wiredu had said in a rejoinder to several stories about the irregular loans approval.
He said the Large Credit Sub-committee was established by Kojo Thompson in 2010 and he only follows precedent.
Reports say that some top officials and workers of the bank are engaging in some banking irregularities since the board chairman also chairs the bank’s Credit Risk Sub-Committee.
Even though some officials suggest that the chairman should step down from chairing the ‘Large Credit Committee’ due to the apparent conflict of interest situation – since he would be presiding over his own decision – Mr Owiredu insists he was only following precedent.
Abnormal Loans
The credit report sighted by DAILY GUIDE, which covers the period between July 2015 to 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 and $76,935,103.90 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 advanced four different kinds of huge credit facilities to one client on the same date and time (August 5, 2015).
This includes 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, over-exposing the bank in this period of turbulence in the banking industry.
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 in February, 2016.
This client had a personal guarantee and a property reportedly worth $2 million dollars as collateral.
Another client was also granted an overdraft of GH¢60 million and a seed fund guarantee of GH¢40 million. Assignment of receivables up to GH¢100 million during the 2015\2016 cocoa season was stated as security held.
These developments have aroused the interest of National Security, which has since commenced investigations into the matter, DAILY GUIDE learnt.
Meanwhile, pressure is still mounting on Mr. Owiredu to step down as Credit Risk Committee chairman following the revelations of the huge unsecured loans.
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