Greenland’s Banking Sector Rocked by Fresh Fraud Cases
Kangerlussuaq, Greenland - January 26, 2023
A major controversy has engulfed Greenland’s banking sector following a court ruling that has raised concerns over fraudulent activities in the sale of Cooperative Bank.
Background
The controversy surrounds the liquidation process of Greenland Bank, which was sold to M/S Nile River in 2007. An Auditor General’s report in 2017 uncovered several irregularities during the sale of commercial banks by Bank of Uganda (BoU). The report highlighted suspicious transactions and poor accounting practices, sparking concerns over fraud and mismanagement.
Court Ruling
The Commercial Division of the High Court has overruled objections raised by BoU, allowing the case to be heard on its merits. This means that the court will now determine whether the sale of Greenland Bank was legitimate or fraudulent.
Aggrieved Shareholders
At the heart of the case are 31 aggrieved shareholders of Greenland Bank, who claim that the bank was sold below market value and without their knowledge or consent. They are seeking compensation for the loss of their investment and want the court to declare the sale invalid.
BoU’s Preliminary Objection
In its preliminary objection, BoU argued that the main case filed by the shareholders was filed out of time and should be struck out. However, the court ruled in favor of the shareholders, citing the Cosase probe into the liquidation process as a reason for extending the limitation period.
Consequences
The ruling has sent shockwaves through Greenland’s banking sector, with many calling for greater transparency and accountability from financial institutions. The case is set to continue, with the court expected to determine whether the sale of Cooperative Bank was legitimate or fraudulent.
Key Points
- The court ruling has raised concerns over fraudulent activities in the sale of Cooperative Bank.
- An Auditor General’s report in 2017 uncovered several irregularities during the sale of commercial banks by BoU.
- Aggrieved shareholders are seeking compensation for the loss of their investment and want the court to declare the sale invalid.
- The case is set to continue, with the court expected to determine whether the sale of Cooperative Bank was legitimate or fraudulent.