{"id":687816,"date":"2019-08-21T14:50:32","date_gmt":"2019-08-21T14:50:32","guid":{"rendered":"
\n\t\t\n

Nana Yaw Oduro, chairman, First Allied<\/strong><\/p>\n\n\n\n

A REVIEW of the\noperations of First Allied Savings and Loans (FASL) Limited in July 2018\nrevealed that its reported financial statements did not reflect its true state\nof a"},"modified":"2019-08-21T14:50:32","modified_gmt":"2019-08-21T14:50:32","slug":"first-allied-presented-deceptive-reports","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2019\/08\/21\/first-allied-presented-deceptive-reports\/","title":{"rendered":"First Allied Presented Deceptive Reports"},"content":{"rendered":"

<\/p>\n

\n

Nana Yaw Oduro, chairman, First Allied<\/strong><\/p>\n

A REVIEW of the
\noperations of First Allied Savings and Loans (FASL) Limited in July 2018
\nrevealed that its reported financial statements did not reflect its true state
\nof affairs, the Bank of Ghana (BoG) has stated.<\/p>\n

The Central Bank
\nsaid FASL made an adjustment to its financials resulting in an assessed
\nnegative capital adequacy ratio (CAR) and negative net worth mainly due to huge
\naccumulated losses recorded over the years, additional provision for loan
\nlosses and reversal of unearned interest receivables from income. <\/p>\n

The BoG report
\nstated: \u201cThe institution\u2019s net worth of negative GH\u00a2661.84 million as of end
\nMay 2019 indicates that its paid-up capital is impaired in violation of Section
\n28(1) Act 930. First Allied\u2019s capital adequacy ratio of negative 263.21% as of
\nend May 2019 was in violation of Section 29(2) of Act 930. <\/p>\n

\u201cThe income
\nsurplus and profit & loss accounts per the General Ledger as of 31st August
\n2018 showed losses but the institution reported positive Income Surplus and
\nProfit and Loss figures in the prudential returns as of 30th June 2018
\nsubmitted to the Bank of Ghana.\u201d <\/p>\n

Understated<\/strong> Deposit Liabilities<\/strong> <\/p>\n

\u201cThe reported
\ndeposit liabilities were grossly understated as of end-June 2018, in effect,
\nreducing customer deposits to conceal losses over the years. <\/p>\n

\u201cFurthermore, total
\nnon-performing loans constituted 88.89% of First Allied\u2019s total loan portfolio
\nwhile also the current accounts of eight (8) related companies linked to the
\nmajor shareholder were overdrawn in excess of GH\u00a2100 \u00a0million and were non-performing,\u201d the dossier
\nnoted.<\/p>\n

Wrong advances<\/strong><\/p>\n

Additionally, the
\nreport said FASL purportedly advanced credit facilities to various
\ninstitutions, predominantly churches and schools without proper documentation. \u201cThese
\nfacilities are non-performing.\u201d <\/p>\n

The report said
\nFASL stopped submitting prudential returns to BoG in June 2018, citing
\ntechnical challenges. <\/p>\n

Inability to meet deposit withdrawals<\/strong><\/p>\n

\u201cThe institution
\ncannot meet the deposit withdrawals of its customers with many customer
\ncomplaints received by the Bank of Ghana. First Allied Savings & Loans Ltd.
\n(FASL) was found to be insolvent with a negative CAR and a negative net worth
\nas of 31 March 2018. <\/p>\n

Capital deficiency<\/strong><\/p>\n

The BoG directed
\nthe board chairman\/majority shareholder and management of the institution to
\nimmediately inject additional capital to address the capital deficiency. <\/p>\n

In June 2018, BoG
\nsaid it received reports of a run on FASL due to its inability to meet
\ncustomers\u2019 deposit withdrawals, especially at its Kumasi and Adabraka branches.\n<\/p>\n

\u201cThe liquidity
\nchallenges later spread to all the twenty-seven (27) branches of the
\ninstitution across the country. The shareholders have failed to address these
\nliquidity challenges,\u201d it added.<\/p>\n

First Allied was licensed by BoG to operate as a savings and loans company on March 27, 1996. <\/p>\n

BY Samuel Boadi <\/strong><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

Nana Yaw Oduro, chairman, First Allied A REVIEW of the operations of First Allied Savings and Loans (FASL) Limited in July 2018 revealed that its reported financial statements did not reflect its true state of affairs, the Bank of Ghana (BoG) has stated. The Central Bank said FASL made an adjustment to its financials resulting […]<\/p>\n","protected":false},"author":1,"featured_media":687817,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":{"0":"post-687816","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\nFirst Allied Presented Deceptive Reports - Ghanamma.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ghanamma.com\/2019\/08\/21\/first-allied-presented-deceptive-reports\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"First Allied Presented Deceptive Reports - Ghanamma.com\" \/>\n<meta name=\"twitter:description\" content=\"Nana Yaw Oduro, chairman, First Allied A REVIEW of the operations of First Allied Savings and Loans (FASL) Limited in July 2018 revealed that its reported financial statements did not reflect its true state of affairs, the Bank of Ghana (BoG) has stated. 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