Confusion Rocks GCB Board Over Bogus Loans

Tension is brewing at the country’s leading local bank, GCB, over some contentious loans advanced to some cronies and clients.

Some top officials of the bank are up in arms against the Board following revelations that, a section of the board approved several huge loans without proper collateral with tacit support of the Board Chairman.

According to sources, this illegal act could affect the finances of the banks since some of the loans are irretrievable and could qualify as bad debts.

The sources further said that a section of the board succeeded in approving ‘uncollateralized’ loans to cronies, putting the bank’s finances in awkward position.

“Even though all members of the Board are required by law and conventions to deliberate on the approval of huge loans, the board chairman and two officials of the bank, who are his avowed allies have been operating in isolation and approving and passing questionable loans in the process,” the source said.

Meanwhile two top officials have been accused of conniving with a senior member of the board to take unilateral decisions inimical to the growth of the bank .

“We can authoritatively report that ,the Risk Manger has been recalled from his annual leave in order not to create room for suspicion following the appointment of a new Managing Director .

“One of these top officials has been recalled from his August leave to come and work so that their illegal activities will not be exposed,” a source disclosed .

Confidential documents in possession of Today indicated that, some individuals and corporate institutions, which “have less convincing collaterals” have been given huge loans, raising questions about due diligence and fairness.

“Cronyism is the order of the day here; we just give loans anyhow without any collateral. This is affecting our operations. The Board Chairman has practically taken over everything and he is acting unilaterally with these two gentlemen,” an angry source told this reporter.

Source: Today