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BOST Board Chair resigns for his ‘involvement’ in Sovereign Bank collapse

Board Chairman for the Bulk Oil Storage and Transportation (BOST), Kwame Acheampong Kyei, has resigned from the board in the wake of the collapse of Sovereign Bank.

He grounded his decision in a letter to President Nana Akufo-Addo on his involvement in the indigenous bank which was among four others collapsed by the Bank of Ghana over liquidity challenges.

“In view of the recent developments relating to my association with the purchase and assumption of Sovereign Bank, and the resulting unfortunate furor in the media, I have decided to voluntarily step down as Chairman/Member of the Board of BOST for the time being,” he explained.

The Bank of Ghana on August 1, 2018, established the Consolidated Bank of Ghana Limited to take over the assets of five banks, including that of the Sovereign Bank whose licences were revoked for breaches of the law.

The banks were said to be deeply insolvent and in the case of the Sovereign Bank, it was also said to have obtained its banking licence under false pretences through the use of suspicious and non-existent capital.

The aftermath of the collapse of the Banks witnessed a wide and varied conversation about some banking irregularities and misappropriation of funds by the then boards of the banks.

Many had questioned the resignation of Kwame Acheampong Kyei as the then Board Chair of Sovereign Bank but he explained he noticed some improprieties had occurred in management without his knowledge, hence, resigning five months before the bank collapsed.

The bank was said to have used fraudulent means to acquire its licence

Mr. Kyei was later appointed Board Chair of BOST but some civil society groups raised concerns, alleging his involvement in the collapse of the Sovereign bank makes him unfit for his new appointment.

He has however stated his “resignation is not an admission of any complicity and/or wrongdoing or whatsoever” but rather to save the image of the government and BOST.

“I am however compelled to do this in order to save the government and BOST what is unfortunately distractive and adverse commentary and propaganda in sections of the media”, the letter reads.

By P.D Wedam|3news|Ghana

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