A dispute over the Economic and Organised Crime Office's (EOCO) attempt to arrest Ghanaian Member of Parliament and private legal practitioner Nana Agyei Baffour Awuah has brought the troubled Equity Savings and Loans Limited back into the spotlight. Baffour Awuah's law firm, Sarkodie Baffour Awuah & Partners, had been engaged by SIC Life Savings and Loans Company Limited to recover millions of cedis from Equity Savings and Loans.
According to Baffour Awuah, SIC Life Savings and Loans had invested approximately GH¢3.5 million with Equity Savings and Loans, which defaulted on payment, causing the obligation to rise to roughly GH¢14 million with accumulated interest. His law firm obtained a summary judgment against Equity but faced difficulties enforcing it due to a lack of identifiable assets. The recovery effort dragged on for about two years, during which Equity made payments amounting to more than GH¢1 million.
Baffour Awuah's explanation of the background to the transaction at the centre of EOCO's interest reveals that his law firm struggled to identify assets belonging to Equity that could be attached. A breakthrough came when they received information about Equity's land at Oyibi, but another company claimed Equity had already sold the land to it. SIC's lawyers prepared to litigate the ownership claim, but the company instead sought a negotiated resolution, resulting in a settlement of about GH¢8 million.
The disclosure is significant because Equity Savings and Loans was already the subject of serious concerns months before the latest EOCO controversy. In June, numerous customers reported difficulties accessing their deposited funds, with some branches closed and repeated difficulties withdrawing their funds. A subsequent investigation found branches in East Legon, Dome, and New Town closed during verification visits.
Equity Savings and Loans is still listed by the Bank of Ghana as a licensed savings and loans company despite customer complaints and apparent inactivity at some of its premises. Baffour Awuah's account raises questions about what assets remain available to meet Equity's other obligations, particularly for ordinary customers who say they remain unable to access their savings.
The history of SIC's attempt to recover its funds from Equity raises questions about when Equity's liquidity and asset problems began, how extensive its liabilities became, what assets were available to meet those liabilities, and what regulators knew about its financial condition. For affected customers, the central issue remains recovery, and the new information emerging from Baffour Awuah's account adds another dimension to the crisis.
EOCO's investigation into Baffour Awuah's alleged failure to honour invitations remains ongoing. The MP disputes EOCO's account, stating that his law firm had responded to the invitations and provided investigators with information and a written statement. The case has sparked concerns about the regulation of savings and loans companies in Ghana and the protection of depositors' funds.
Key points
- Baffour Awuah's law firm recovered GH¢8 million from Equity Savings and Loans on behalf of SIC Life Savings and Loans Company Limited.
- Equity Savings and Loans faces customer complaints and financial difficulties, with some branches closed and customers unable to access their deposited funds.
- The case raises questions about the regulation of savings and loans companies in Ghana and the protection of depositors' funds.
