Cronyism and kinship in Ghana’s financial market: Group accuses BoG and Finance Minister 

The Minister of Finance, Ken Ofori-Atta, has been cited for appointing a sizeable number of his close relations and friends to work and manage key state institutions mandated to regulate the country’s financial market. This is to enable him have his ways, the group alleges.
According to the Group – Progressive Alliance Media Communicators (PAMC), the  appointment of his business partner as the Executive Director of the Securities and Exchange Commission (SEC), is a clear move to perpetuate wrongdoing with impunity.
A press statement issued and signed by the Lead Convener of the Group, Annette Enyo, and copied to the Country Director of the International Monitory Fund (IMF), all Political Parties in Ghana, among others, states that, “the Finance Minister has today appointed his close business partner and friend who until today was Vice President of his Data Bank to serve as the Executive Director of the Security and Exchange Commission (SEC) which is expected to investigate the Finance Minister Ken Ofori Atta”.
The Communicators also accused the Central Bank arrogance by refusing to be accountable to Ghanaians, in the case of the controversial US$2.25 Billon Bond issue, among others.
“Now the Bank of Ghana is becoming very arrogant and unwilling to provide information about the $2.25 billion Bond and the takeover of the two banks by GCB without approval by the shareholders as required by law”.
Below is the full release:
Dear Managing Director of IMF,
Financial and Capital Market Governance in Ghana
We are Non Profit Association of Ghanaians interested in progress of our country by following good governance both in the way the affairs of the country is managed and how the financial and capital market in particular is governed. We are aware that Ghana is a member of the International Monetary Fund (IMF) family and guiding the government of Ghana under the Extended Credit Facility (ECF) program which is expected to come to  an end in April 2018 but has been extended into 2019. The program among others is designed to achieve improved reforms in key institutions including Bank of Ghana and the financial sector. 
We are however, surprised that under your watch the government of Ghana since 7th January, 2017 have been undermining the tenets of corporate governance in almost all its activities. The government through the Ministry of Finance did not follow the  Constitutional requirement for the issuance of the $2.25billion bond and also did not comply with the requirements of the Securities and Exchanges Commission Act. The Finance  Minister in particular is facing conflict of interest investigation with USA SEC, Ghanaian SEC and the Commission on Human Rights and Administrative Justice ( CHRAJ) in Ghana. There are a number of Business Associates and family members occupying key financial market regulatory institutions such as Bank of Ghana, National Insurance Commission and SEC. The state own Banks are not sparred as there is massive interference. Recently in the absence  of a board of Agricultural Development Bank (ADB), the Minister of Finance personally approved a GHC10million  credit to a private firm on behalf of ADB. It is also believed that this interference in the credit management of banks  will affect many loans  from January  7 , 2017 till August  2017.This means many loans have been granted without the actual approval of Board of directors of commercial banks such as GCB, NIB and ADB.  
Finally, the Finance minister has today appointed his close business partner and friend who until today was Vice President of his Data bank to serve as the Executive director of the SEC which is expected to investigate the Finance Minister Ken Ofori Atta. 
We are loosing hope as the IMF seem not concerned  about all these developments. This is not good governance. In the take over of the Capital Bank and UT bank again the SEC law  and the Companies Act were violated with applause from you(IMF) .
We are drawing your attention to these painful developments in the financial market in Ghana under your watch and to let us know why you are allowing the minister of Finance and the government  engage in hardcore disregard for corporate governance rules in the financial sector of Ghana. Now the Bank of Ghana is becoming very arrogant and unwilling to provide information about the $2.25billion bond and the takeover of the two banks by GCB without approval by the shareholders as required by law. 
Your urgent comment on these matters is requested unless you approve of the dangerous corporate governance roadmap by the Finance Minister, Bank of Ghana and the government of Ghana.
Yours faithfully,
Signed:
Annette Enyo
(Lead Convener)
020 095 1910
King A Sulleyman
(PRO)
0505400567
Cc:
Country Director, IMF
Ministry of finance
Bank of Ghana
All political parties
All media houses
Parliament
GJA
SEC, USA
Source: Francis Edzorna Mensah

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