NPP clandestinely selling off ADB Bank and NIB – Adongo alleges

570 total views, 1 views today

The opposition National Democratic Congress (NDC) Member of Parliament for Bolgatanga Central, Isaac Adongo, has raised red flags that some persons within the New Patriotic Party (NPP) administration are clandestinely trying to sell off ADB Bank and the National Investment Bank (NIB).

Even though the two banks scrapped through meeting their Bank of Ghana (BOG) prescribed minimum capital requirement, they have been listed as beneficiaries of a Special Purpose Vehicle (SPV) consisting of pension funds to restructure their finances.

The SPV would be operated by the newly formed the Ghana Amalgamated Trust Limited (GAT).

“how can ADB, which we were all told that it has been recapitalized, the turnaround in a few weeks after and be part of the GAT arrangement?” Adongo asked in an interview monitored by Whatsup News.

“At the extraordinary general meeting of ADB, the shareholders took a decision that the Bank of Ghana (BoG) will convert its liquidity support of GH₵150 million into equity. The shareholders agreed to a renounceable rights issue which meant that they had agreed to bring in additional money to recapitalize,” he stated.

“However, fast forward, we have been told that ADB is now part of a private arrangement under GAT to recapitalize. In other words, the government of Ghana is passing through the backdoor to give ADB to a private entity,” he stated.

According to a peeved Adongo, checks at the Registrar General Department (RGD) indicated that the National Trust Holding Company (NTHC) was a nominee shareholder of GAT on behalf of the government. NTHC, he said, is owned by SSNIT, NIB and SIC Insurance.

“How can an institution owned by state institutions be called private entity? You say GAT is a private arrangement and yet the nominee shareholder is the NTHC so where do the private people come in?” he asked.

“You have indicated that GAT will have the capacity to go unto the market to raise funds, raise bonds and be able to finance its activities so if a government of Ghana entity goes to the stock exchange to raise GH¢2 billion and in raising that money, the pension funds decide to participate, how does that automatically make the pension funds part-owners of the entity they have invested in?

Isaac Adongo said this was “a clever process” to allow private entities to take up ADB and NIB and therefore called on all Ghanaians to resist the move.

Source: Whatsup News

Ghana News Online

The primary function of GhanaNewsOnline.com.gh is to gather, process and distribute news about Ghana and Africa to the World. To serve as a News Agency with the mandate to present complete, in-depth objective and impartial information, news, and features rooted in investigative journalism.

Leave a Reply

Your e-mail address will not be published. Required fields are marked *