The receiver of UniBank can continue to act until the hearing of appeal-Court of Appeal

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    The Court of Appeal on July 28, 2021, stayed the execution and effect of the 24th June, 2021 ruling of the High Court in the case of Unibank versus Duffuor and 9 others.

    The Commercial Court in Accra declared on June 24, 2021, that the appointment of Nii Amanor Dodoo as receiver of uniBank Ghana limited is a breach of the Specialized Deposit-Taking Institutions Act (Act 930).

    The court, presided by Justice Afi Agbanu-Kudemor also ruled that Mr. Amanor Dodoo’s acceptance of the job is in breach of the Act.

    The court held that Nii Amanor Dodoo ought not to have accepted the appointment as a receiver when he acted as a member of the team of accountants from KPMG who were appointed by the Bank of Ghana as the official administrator of uniBank.

    However, on 28th June 2021, Unibank through its receiver appealed the High Court’s decision and filed a stay of execution to that effect.

    The Receiver of Unibank argued that;

    1. Dr. Duffuor,other defendants and anybody else ought not to be allowed to rely on the now-suspended ruling to the disadvantage of Unibank since a successful appeal would be rendered useless if the same was done.
    2. The ruling of the High Court was likely to be reversed on appeal.

    The Court, in a unanimous judgment, read by Justice Mrs. Margaret Welbourne, Justice of the Court of Appeal, held that the grounds of appeal had “arguable points of law.”

    Furthermore, the court held that Unibank acting through its receiver had proven that exceptional circumstances support the setting aside of the High Court’s ruling, especially the impact of the ruling on the Nation’s financial sector.

    Thus, the receiver of Unibank can continue to act, while the appeal processes continue.

    Background

    Founder of defunct Unibank, Dr. Kwabena Duffuor is standing trial on 68 counts of fraudulent breach of trust, money laundering, dishonestly receiving, and falsification of accounts.

    According to the suit filed at the High Court, Dr. Duffuor is facing trial alongside the former Deputy Governor of the Bank of Ghana, Johnson Pandit Asiama, and seven others.

    The others are Hoda Holdings Limited, Kwabena Duffour II, Ekow Nyarko Dadzie-Dennis, Elsie Dansoa Kyereh, Jeffrey Amon, Benjamin Ofori and Kwadwo Opoku Okoh.

    UniBank went into official administration on March 20, 2018, and eventually collapsed on August 1, 2018.

    Official Administrator, KPMG, in the course of its duties discovered that about GHS5.7 billion was owed by shareholders of uniBank as of March 20, 2018.

    The GHS5.7 billion was the focus of a previous suit by Nii Amanor Dodoo who is acting as the Receiver until the High Court’s ruling June 24, 2021.