Supreme Court upholds UMB’s dismissal of former MD, Peter Illiasu over unauthorised transactions

On January 22, 2025, the Supreme Court of Ghana ruled in favor of Universal Merchant Bank (formerly Merchant Bank) in a legal dispute with its former Managing Director (MD), Mr. Peter Illiasu.

The court upheld the bank’s decision to dismiss Illiasu in 2010 for unauthorized financial transactions, including approving loans exceeding the bank’s statutory lending limits and authorizing payment of GHS349,593.75 from the Volta River Authority (VRA) account to Abi Capital without VRA's consent.

The court found that Illiasu violated banking regulations and his fiduciary duties. Both Illiasu and Abi Capital were ordered to refund the payment with interest, emphasizing the importance of strict adherence to governance and statutory regulations in banking.