The state has entered a nolle prosequi in the case in which a former Minister of Finance and founder of uniBank Ghana Ltd, Dr Kwabena Duffuor, and seven others are standing trial in the banking sector clean-up in 2017.
The Office of the Attorney-General explained that the central objective of the prosecution (part of a broader set of prosecutions arising out of the financial sector clean-up exercise which the state had been undertaking since the year 2018) had been to ensure accountability for public funds.
More importantly, they were to recover losses occasioned to the State through various alleged acts of financial impropriety.
A statement issued yesterday and signed by the Deputy Attorney-General and Minister of Justice, Dr Justice Srem-Sai, said in pursuit of that objective, the Office of the Attorney General, in collaboration with other relevant State agencies, established a threshold of 60 per cent recovery of the alleged losses to the State as a condition for reconsidering prosecution in specific cases.
It said following prolonged negotiations and engagements, the accused persons in the case of “The Republic v. Kwabena Duffuor & 7 Others” had met the recovery threshold.
“Accordingly, in furtherance of public interest, and considering the significant recoveries made for the State, the Honourable Attorney-General has satisfied himself that continuing with the prosecution will not serve any additional public purpose,” the statement added.
It explained that the decision, however, did not imply an absence of wrongdoing nor a vindication of any conduct, saying, “It is a pragmatic step in line with the overarching national interest of recovering State resources.”
The Office of the Attorney-General said the exercise of the prosecutorial discretion required no explanation under law. However, the Attorney-General, in the spirit of accountability and transparency, considered it appropriate to provide the public with the rationale behind this decision.
“The Honourable Attorney-General remains resolute in his commitment to upholding the rule of law, protecting the public purse, and pursuing justice in all matters of national importance,” the statement said.
The case between the state and Dr Duffuor, and seven others, is in relation to the financial sector clean-up exercise initiated by the government on August 14, 2017.
The collapse of the 420 financial institutions affected cost GH¢26.05 billion.
The figure was exclusive of the closure of 50 Fund Management Companies regulated by the Securities and Exchange Commission, which accounted for an additional GH¢10 billion.
Some popular financial institutions that were affected were UT Bank, Capital Bank, UniBank, Heritage Bank, Royal Bank, BEIGE and GN Bank.
The case centred around allegations of financial impropriety, breach of duty, and causing financial loss to the state.
Dr Duffuor, who owned the collapsed UniBank and subsidiaries, and the other accused persons were alleged to have played a role in the collapse of several financial institutions, including banks, savings and loans companies, and microfinance institutions, during the clean-up exercise.
The New Patriotic Party (NPP) government then said that the actions of the accused persons led to significant financial losses and undermined the stability of the financial sector.
It argued that the accused persons failed to exercise due diligence and prudence in their roles, resulting in the collapse of several financial institutions.
The government then also argued that, the cleanup would strengthen the financial sector, protect depositors and restore confidence in the economy.
The defendants, however, denied any wrongdoing and argued that their actions were in accordance with established policies and procedures.
