Global Access Savings and Loans collapsed because of high rent charges by majority shareholder, Kofi Amoah: BoG report

08/18/2019 | Pulse Ghana | Abu Mubarik
Dr Kofi Amoah

The Bank of Ghana has revealed how Global Access Savings and Loans, owned by Dr Kofi Amoah, Chairman of the GFA Normalization Committee, became insolvent.

The report captured multiple infractions by the company and its majority shareholder, Dr Kofi Amoah.

The report said the institution recorded accumulated losses "due mainly to high rent expenses paid to the majority shareholder for the use of its premises."

In addition, the report noted that the majority shareholder, Dr Amoah, contracted a loan of GH¢2.91 million and made Global Access Savings and Loans assume liability for the loan.

"The loan amount was injected into the institution as equity capital. The liability was however concealed as a suspense account in the books of Global Access Savings and Loans Limited," the report further said.

Other infractions committed by the institution include:

According to the BoG, the institution has been insolvent since 2016 with serious liquidity challenges.

"The reported capital adequacy ratio and net worth are both negative," the report said.

Global Access Savings and Loans Company Limited was incorporated under the laws of Ghana in 1998 and commenced business in February 2000 as a Partner Agent of ADB in the Western Union Money Transfer Business.

The company grew and added other money transfer services to its remittance product line. Following the changing need of customers, Management decided to convert the company into a Savings and Loans Company.

The company was granted a savings and loans company license on 15th June, 2009 by the Bank of Ghana and it commenced operations on December 6, 2010. 

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