The Republic Bank of Trinidad & Tobago (RBTT) has paid the GH¢1,000,000 fine imposed on it by the Securities and Exchange Commission (SEC).
The fine was paid yesterday by Robert Le Hunte, local representative of RBTT in Ghana.
The payment, made via a bankers draft number 014123, was effected by Le Hunte to the SEC through HFC Bank.
Analysts doubt if the GH¢1,000,000 fine is an appropriate sanction for the breach of the takeover code.
They also wonder if the payment would cause irreparable damage to the reputation of RBTT.
RBTT rejected accusations by the Security Exchanges Commission (SEC) that it breached takeover rules in the purchase of Union Bank of Nigeria’s stake in HFC Bank.
The SEC fined the Caribbean bank for the alleged breach following a request by a shareholder of HFC Bank, Kwasi Asante, to the Commission for investigations to be conducted into possible Insider Trading and breach of procedure.
The SEC however cleared the Republic Bank of insider trading, but fined it for breaching key takeover rules after the investigation.
Mr Le Hunte said the bank disagreed with SEC’s findings but paid the fine upon the advice of its legal team.
He also added that Republic Bank paid the fine because it did not want to hurt its chances in the HFC takeover.
‘As a bank we have been committed to observing and obeying all the rules of the land and we actually acted based on the advice of lawyers,’ he said.
Speaking to Joy FM, renowned Corporate Governance expert, Mervyn King, said there was nothing wrong with the actions of the SEC despite criticisms by some industry players.
By Samuel Boadi
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