By Sallieu S, Kanu
Freetown, June 17, 2026: The Governor of the Bank of Sierra Leone, Dr. Ibrahim Stevens, has announced that Union Trust Bank (UTB) is insolvent and no longer meets the legal requirements to operate as a commercial bank.
Speaking at a press briefing in Freetown, Dr. Stevens revealed that UTB’s paid-up capital stood at just NLe33.82 million in 2025, far below the statutory minimum of NLe270 million, while the bank had accumulated losses amounting to NLe328.5 million.
He warned that UTB’s assets would be unable to cover its liabilities if all depositors demanded their funds simultaneously, prompting regulatory intervention to safeguard depositors and maintain stability in Sierra Leone’s banking sector.
Speaking on the development, Governor Stevens disclosed that the Bank of Sierra Leone has transferred the assets and liabilities of UTB to Rokel Commercial Bank, a majority state-owned financial institution, following a series of regulatory interventions aimed at protecting depositors and preserving confidence in the banking system.
He assured customers that their funds remain safe and fully accessible, emphasizing that banking services will continue uninterrupted throughout the transition process. The Governor further stated that the takeover arrangement includes measures to protect the jobs of UTB employees, ensuring that staff members are not adversely affected by the restructuring.
The Bank of Sierra Leone maintains that the decision forms part of its broader mandate to safeguard depositors, maintain financial stability, and ensure the soundness of the country’s banking sector.
Staff Association Raises Objection
In a parallel development, the UTB Staff Association has threatened legal action over what it describes as an unlawful attempt to pay “end of service benefits” without following due process.
According to a letter addressed to the bank’s HR Director, the association cited Section 43 of the Employment Act 2023 and Section 42(4) of the Banking Act 2019, which require:
- Written notice to affected employees of at least 2–3 months depending on length of service.
- Written notice to the Minister of Employment, Labour and Social Security at least 30 days before redundancy.
- Consultation with staff representatives on mitigation measures.
- Payment of all statutory entitlements, including arrears, overtime, per diem, leave, and redundancy compensation.
The association alleged that the caretaker management team intended to credit staff accounts with “end of service benefits” between June 13–15, 2026 without prior notice or consultation.
Strong Warning Issued
“We hereby object in the strongest terms to the proposed payments, which violate statutory requirements and undermine staff rights,” the association stated, warning that it would pursue legal remedies if the payments proceed.
The unfolding dispute adds to the uncertainty surrounding UTB’s transition, as regulators and stakeholders grapple with the implications of the bank’s insolvency and the protection of employees’ rights.