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GAT Saga: NIB Financials Missing from Documents

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Renowned lawyer linked to the ruling New Patriotic Party, Ace Annan Ankomah and his law firm Bentsi-Enchill Letsa & Ankomah (BELA) would cream off a hefty GHC 1.7 million from the controversial Ghana Amalgamated Trust (GAT) to sell off two important state banks : Agricultural Development Bank (ADB) and National Investment Bank (NIB) in five years.

Whatsup News has intercepted the GAT prospectus being discussed by the stakeholders in the transaction. In the Prospectus, BELA and arrangers of the deal such as Algebra Securities Limited, Stanbic Securities Ghana Limited (SBG), Price Water House Coopers and KPMG would all smile to the bank with a mouth-watering GHC 30.40 million from the transaction.

Critics have questioned how some of these companies secured the juicy deal to broker the GAT deal.

The prospectus from GAT is simply dated February 2019 and it spells out details of the terms of the planned GHC 2 billion bond being raised from pension funds and unknown private investors to reportedly “support solvent and strong indigenous banks to meet their minimum capital requirement”.

The banks set to be swallowed by GAT include the Prudential Bank, Universal Merchant Bank (UMB), Sahel/Omni Bank and NIB. However, it appears the arrangement is specifically targeting NIB as another intercepted document titled: “Ghana Amalgamated Trust: Potential Investment Summary for Discussion Purposes,” specifically left out the financial statement of NIB, despite capturing the financial statements of all the other banks.

This coincides with an earlier allegation by workers that the Finance Ministry was deliberately suppressing the release of the financial statement of NIB.

The controversial GAT arrangement was set up by the Ministry of Finance headed by Ken Ofori-Atta and it has already caused enough angst leading to the resignation of Togbe Afede XIV.

According to the documents available to Whatsup News and evaluation by experts and critics, the GAT arrangement is just a clever ploy to make state banks such as NIB and ADB attractive enough to be taken over by private investors in 2024- particularly from Wallstreet or individuals linked to the current administration.

A copy of the preliminary agreement available to Whatsup News indicates that after GAT restructures NIB with funds from workers’ pension funds and bonds guaranteed 100% by the government, GAT plans to sell the bank off to the highest bidder in five years.
Isaac Adongo, a spokesman for the finance committee of the opposition National Democratic Congress (NDC) has described the GAT arrangement with NIB and the other banks as a scam. According to him in a statement released last week, NIB does not need a pesewa from GAT.

“ I have done a preliminary review of the financial statements of NIB for the period ended 31st December 2018 and realised that NIB, on its own, can fully recapitalise to GHC545 million if it is allowed to sell its stake in Nestle Ghana and the government of Ghana pays its GHC700 million to the bank. At best, NIB does not need a pesewa from GAT not to talk of the GHC1.4 billion that the trust says NIB requires,” Adongo said.

Source: Whatsup News

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