Ecobank dismisses reports of asset seizure over judgment debt
Management denies claims that Ecobank’s assets were on the verge of being seized in connection with a multimillion-dollar judgment debt
Ecobank Ghana says no levies have been issued against the bank, despite reports that it owes a debt to a private entity.
The institution came under the spotlight after reports emerged that the police had raided its head office on Tuesday 21 July.
A report by Citinewsroom.com said the police were there to seize the assets of the bank in connection with a US$4 million judgment debt.
The report said a high court had ordered the seizure of assets, but Ecobank officials stepped in to stop the move.
Reacting to the reports, Ecobank managers vehemently denied the claims, insisting no levies have been issued against the bank.
Still open for business
In a statement, the bank assured customers and the general public that it is remains in full compliance with all banking regulations.
It said Ecobank remains open for normal banking business and to assist with other transactions, and urged stakeholders to remain calm.
“Ecobank unequivocally refutes the story as reported and states clearly for the record that no such execution has been levied on the bank,” a section of the statement said.
“Ecobank is open for business and assures all stakeholders and the general public that the bank is fully compliant with all legal and regulatory directives.”
Suit and countersuit
A high court had reportedly ordered Ecobank to make a payment of $4 million with accrued interest of $10 million, dating back to the year 2015, to Yuri M Plastics.
A Citi News report said the order was the result of a fraud committed against four plaintiffs – Mike Agbemashior, George Tykhonov, Yury Shelkov and Yuri M Plastics.
An official for Yuri M Plastics is said to have secured a loan from Ecobank in the name of the company.
After approving the loan without due diligence, Ecobank secured a court order to take control of the plastics company after the official defaulted on payments.
Yuri M Plastics later sued Ecobank for damages, and a court ordered the bank to pay $4 million to the plastics company in 2015.
The bank failed to make the payment. The news reports cited this as the cause of the putative order to seize movable and immovable assets of Ecobank.
E A Alanore
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