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Banking Crisis UT Bank wanted to meet Mahama over brother's GHC302M debt

UT Bank, without proper banking procedures, advanced a loan facility of GHC305 million to four companies belonging to Ibrahim Mahama.

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An audit report on the collapsed UT Bank has revealed how the board of the bank wanted to meet the then President of Ghana, John Mahama, over his brother's debt to the company.

UT Bank, without proper banking procedures, advanced a loan facility of GHC305 million to four companies belonging to Ibrahim Mahama.

READ MORE: How Ibrahim Mahama's GHC302M debt collapsed UT Bank

He failed to pay the loan as planned, the audit report said, leading to agitation by the board who held a series of meetings over the matter.

The audit report, which captured the ex-president's brother as a "politically exposed person," noted that the board felt "slighted and disrespected" by Ibrahim.

At a meeting, the board resolved to "exert external pressure" on him by holding a meeting with his brother, Mr Mahama.

It is unclear if the board had an audience with Mr Mahama, but Ibrahim finally showed up at an invited board meeting, after failing to honour an initial one extended to him.

READ MORE: Here is what BoG’s GHC1.4bn to UT and Capital Banks can do for Ghana

When he appeared before the meeting, Ibrahim Mahama assured the board that he was "making every effort to pay the amounts outstanding from related companies."

In August 2018, the Bank of Ghana revoked the license of the Bank over its inability to turn around the negative capital adequacy position of the bank.

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