The businessman had reported to EOCO over the ongoing investigations into the collapsed financial institutions.
On Wednesday, unofficial reports emerged was detained at the Police Station for some hours before being released on bail.
He however denied the reportage.
Ideal Finance was part of the 23 insolvent savings and loans companies and finance houses whose licenses was revoked by the Bank of Ghana months ago.
The revocation was because the company had become insolvent even after a reasonable period within which Central Bank had engaged with it in the hope that they would be recapitalized by their shareholders to return them to solvency.
Reasons for revocation of Ideal Finance’s license
Ideal Finance Limited was incorporated in 2009 under the Companies Act, 1963 (Act 179 and licensed by the Bank of Ghana under the Non-Bank Financial Institutions Act, 2008 (Act 774 as a money lending company. The company was subsequently licenced to carry on the business of a finance house on 18th December, 2014 and established its head office at East Legon in Accra. Ideal Finance has been faced with severe insolvency and liquidity challenges over the past two years.
The Institution faced a significant capital shortfall with a Capital Adequacy Ratio (CAR) of negative 33% in breach of the minimum required of 13% with a corresponding capital deficit of negative Ghc188,257,625.35 The institution was also facing a severe liquidity crisis with numerous complaints received by the Financial Stability Department of the Bank of Ghana from aggrieved customers who have been unable to access their deposits with the institution for the last several months. What is more, it had consistently failed to meet the minimum cash reserve requirement of 10% of its total deposits.
The Institution’s shareholders also failed to restore the bank to the required regulatory capital and liquidity levels in spite of long-standing promises that new capital was expected from foreign investors.