The host of Ghana Yensom Morning Show on Accra 100.5 FM from the stables of Class Media Group (CMG), Otafrigya Kwesi Appea-Apreku, has announced the launch of a campaign to push for the restoration of the collapsed Heritage Bank.

Dubbed #BringBackHeritageBank, the campaign is set to commence on Wednesday, January 22, 2025, with the primary objective of pressuring the Bank of Ghana (BoG) to reinstate the bank’s license.

Announcing the initiative, Appea-Apreku emphasized that the campaign would be vigorous and would engage experts in the banking sector to provide insights into the financial sector cleanup initiated by the Central Bank Governor.

Background on the Collapse of Heritage Bank

The Bank of Ghana revoked Heritage Bank’s license as part of its efforts to restructure and sanitize the financial sector.

The central bank cited irregularities in licensing, the sources of capital, and related party transactions as the key reasons for the revocation.

According to the BoG Governor, Dr. Ernest Addison, the bank also failed to meet the ₵400 million minimum capital requirement by the December 31, 2018 deadline.

Reasons for the License Revocation

Suspicious Sources of Capital – The Bank of Ghana raised concerns over the origins of the bank’s capital, citing violations of the Banks and SDI Act, 2016 (Act 930) and the Anti-Money Laundering Act, 2008 (Act 749).The BoG stated that:

Heritage Bank’s promoters claimed that GH₵120.6 million was deposited in a local bank as part of its startup capital.  However, this amount was allegedly transferred from Agricult, a company wholly owned by Seidu Agongo, a key promoter of the bank. The funds were allegedly linked to COCOBOD contracts, which are currently under criminal prosecution in the High Court of Ghana. The BoG also discovered that the bank had failed to comply with two High Court orders requiring full disclosure of financial transactions involving its significant shareholder, Seidu Agongo.

Undisclosed Shareholder Transactions – The BoG’s investigation found that:

Seidu Agongo claimed his capital sources included proceeds from a $19.25 million contract with COCOBOD, but the BoG found no record of such a contract. Instead, contracts existed between COCOBOD and Sarago Limited, a company also linked to Agongo, which was not disclosed during the licensing process.

Capital Deficiency and Financial Irregularities –

The bank’s 2017 audited financial statements revealed a GH₵15.8 million transfer from an unnamed investor, raising concerns about the full payment of the minimum capital at the time of licensing. Heritage Bank booked an operating loss of GH₵20.6 million, which was expected to be repaid through a transfer of fixed assets (bank branches) by an unnamed shareholder.  However, efforts by the BoG to verify the identity of the shareholder, the valuation of the assets, and the legitimacy of the transaction were unsuccessful. Push for Reinstatement

Despite these concerns, advocates of the #BringBackHeritageBank campaign argue that the revocation of the bank’s license was unfair and politically motivated.

The campaign seeks to reopen discussions on the matter and urge the Bank of Ghana to reconsider its decision.

As the campaign kicks off, financial experts, industry stakeholders, and the general public are expected to weigh in on the debate over the fate of Heritage Bank.