The collapse of UT Bank, a Ghanaian indigenous financial institution founded by Capt. (Rtd) Prince Kofi Amoabeng has become a constant reminder of how political power brokers can easily undo entrepreneurial success.
Dr. Sir Sam Jonah, a renowned Ghanaian businessman says the UT Bank story lives on and it echoes in the decision of entrepreneurs that no matter how hard you work, your achievements can be derailed by those in power.
The businessman and the Chancellor of the University of Cape Coast made these remarks when he spoke at the launch of Capt.(rtd) Prince Kofi Amoabeng’s book titled “The UT Story”, a third of a series he has written to tell the origins, operations and the circumstances leading to the collapse of his bank.
The licenses of both UT and Unibank were revoked in 2017 to mark the beginning of a very controversial banking sector cleanup exercise. A number of banks also went down for regulatory breaches and poor corporate governance practices. It also led to the introduction of several reforms such as a raise in the minimum capital requirement and a new corporate governance directives. However, the actual cost of the exercise continues to be a mystery.
Following the collapse of UT Bank, the founder has been standing trial to answer charges for alleged role he played in the purported woes of the bank leading to the collapse.
But Dr. Sam Jonah strongly believes the circumstances leading to the collapse of the bank not only dismantled a successful indigenous enterprise but also sent a chilling message to Ghanaian entrepreneurs about the vulnerability of their achievements to political interference.
He further maintains that the government’s decision has had lasting consequences discouraging entrepreneurs from pursuing bold initiatives that could play significant roles in transforming the economy.
Sir Sam Jonah aptly noted, the story of UT Bank is a testament to the potential of Ghanaian entrepreneurship and a clarion call to create an environment where such potential can flourish unimpeded.
“The seizure of this bank was one of the most egregious acts of economic injustice perpetrated by a state, a move driven by malice, deceit, envy, and jealousy. It was not merely a collapse of a bank, it was a blow to the very idea that Ghanaians could build something of their own and succeed at the highest level,” the business mogul noted.
He added, “It sent a chilling message to entrepreneurs and investors that no matter how hard you try, no matter how hard you work, how well you play by the rules, your success can easily be undone by those in power.”
The sentiments of Dr. Sam Jonah are shared by another victim of the cleanup exercise, Dr. Papa Kwesi Nduom the founder and group CEO of Groupe Nduom.
The owner of GN Bank and Blackshield has consistently maintained that his chain of businesses were deliberately and maliciously marked for destruction through the cleanup.
He has been on a campaign to the get his banking licenses reinstated to continue with his business.
The calls for the licenses revoked through the exercise have been gaining grounds in recent weeks. Some financial analysts and economists believe the exercise has resulted in the country’s banking sector being dominated by foreign banks. They are therefore calling for a relook at the exercise by the current administration.
Already the current administration during the run-up to the 2024 general elections promised to investigate the cleanup. It is however unknown when such a probe will begin.
Meanwhile, Director of the Institute of Statistical Social and Economic Research (ISSER) at the University of Ghana, Prof. Peter Quartey says amidst the calls for the restoration of the licenses, the government should tread cautiously.
