On 22nd July 2022, the BoG, acting aloft its powers, beneath the Banks and Specialised Deposit-Taking Institutions Act, Act 930 and the Corporate Babyminding Charge 2018, issued a charge on the arrangement and redesignation of admiral and key administration personnel
This appropriate all bartering banks [including Universal Merchant Coffer Ltd (UMB)] to access a above-mentioned accounting "No Objection" from BoG afore redesignating an absolute non-executive administrator to any added position
UMB on 5th July 2023 declared to accredit Mr Smith-Graham (a non-executive director) as its lath armchair at an emergency affair of its Board
UMB did not accede with the BoG's charge of July 2022 by declining to access BoG's above-mentioned accounting "No Objection" to the declared appointment
BoG afterwards abreast UMB of its aperture of the charge and directed UMB to administer for its "No objection" for the arrangement of Mr Smith-Graham as its Lath Chair
The UMB, in response, claimed it had been brash by its attorneys that it did not crave BoG's "No Objection" to accredit Mr Smith Graham as the Lath Chair, appropriately it would not so administer to BoG
Due to UMB's position, BoG acclimatized its admiral beneath the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) and revoked its approval of the arrangement of Mr Smith Graham as UMB's director
Dissatisfied with the accommodation of the BoG, Mr Smith Graham (Applicant) filed an appliance for authoritative analysis of the abolishment of his arrangement as a director
It was the case of the appellant that the ability of the BoG beneath area 102 of Act 930 does not accommodate the ability to abjure his arrangement as a administrator of UMB Bank
The appellant arguable added that alike if the BoG had the ability to abjure his arrangement as a director, the BoG was appropriate beneath law to accord him a hearing
The BoG on the added duke maintained that it had the ability to abjure the arrangement of the appellant beneath the said area 102 of Act 930
The affair afore the Cloister was whether the BoG could abjure the arrangement of the appellant beneath area 102 of Act 930 based on advice that it apparent by its investigations
Court ruling On July 10, 2024, the High Cloister presided over by Justice Nana Brew absolved an appliance for authoritative analysis filed by George Smith-Graham
The Cloister explained that it advised Area 102 of Act 930 and was of the appearance that the area conferred advanced admiral on the BoG to antidote any abuse of its laws and regulations by banks and specialised bead demography institutions, and that the BoG was advantaged to exercise the ability afterwards accepting advice on the breach
The Cloister accordingly captivated that the altercation by the appellant that the BoG could not abjure the arrangement of a administrator of a bank, which had abandoned its laws unless it had accustomed the administrator a audition was untenable. The Cloister added declared that Area 102 (3) of Act 930 continued the alleviative activity that may be taken by the BoG to accommodate the abatement of a director
The Cloister begin added that the barter of belletrist amid the parties showed that the BoG gave the appellant and UMB a hearing. In the appearance of the Court, the Applicant, who was acting both as a administrator and the Chairperson of UMB could not feign benightedness of the accord amid the parties
It assuredly captivated that the Companies Act, 2019 (Act 992) does not bind the ample admiral accustomed to BoG beneath Act 930 to antidote the aperture of its directives. The Cloister added that Act 930, which is the law accurately acclimation the conduct of banks, takes antecedence over the accepted accoutrement of Act 992 apropos the abatement of admiral by BoG
The Cloister accordingly absolved the appliance on area that it was unmeritorious and that the Appellant was clumsy to authorize that the BoG's ability was acclimatized corruptly or with an angry absorbed in an irrational, arbitrary and absurd manner
Smith-Graham's acknowledgment to the cloister ruling But in a account issued by Mr Smith-Graham blue-blooded 'setting the almanac straight', he insisted that the Coffer of Ghana abused its admiral and sidestepped the law, appropriately his accommodation to abode the ruling
He said "The High Cloister bootless or alone to abode the basic acknowledged affair of whether the BoG could, by a letter, appoint added requirements on banks to seek "no objection" from the BoG back such requirements are not independent in Act 930 or the Corporate Babyminding Directives, 2018." "It is acute to emphasise that authoritative bodies such as the BoG should not use authoritative belletrist to alter or override the accoutrement of an Act of Parliament or acknowledged instructions such as the Corporate Babyminding Directives, 2018. Allowing such letters, mischievously labelled as directives, to angle would acutely affect the operations of banks." "In ablaze of these concerns, I am bent to accompany an appeal. My charge is to advocate the attempt of acceptable governance, transparency, and accountability aural the cyberbanking industry. The aftereffect of this abode will accept cogent implications for the babyminding and operational candor of the sector. I alarm aloft all stakeholders to abutment efforts to advance a fair and aloof authoritative framework" the account noted
Tags: Coffer of Ghana George Smith-Graham UMB Related to this story BoG acted accurately in accusatory Smith-Graham's arrangement as UMB Lath Armchair - Cloister BoG's forex barter measures won't crop after-effects in stabilizing cedi - Bokpin MoMo alive accounts in June increased, but affairs bead by GH¢24m Coffer of Ghana keeps action amount at 29% BoG yet to accomplish any acquittal to Service Ghana Auto Group Supreme Cloister affirms BoG abolishment of UniCredit authorization BoG justifies abolishment of GN Savings and Loans' authorization Minority to authenticate adjoin BoG to appeal Addison's arch BoG charge accession minimum basic claim for banks - Finance Expert Dr Atuahene calls for crackdown on fintech, argumentative audits to assure remittance area