Fidelity Bank Denies Allegations of Procurement Irregularities in Dealings with ECG

Fidelity Bank Ghana has firmly denied allegations of procurement irregularities in its dealings with the Electricity Company of Ghana (ECG), following claims made in a report by a coalition of 14 Civil Society Organisations (CSOs) on October 24, 2024. In an official statement, the bank emphasized its commitment to compliance, transparency, and regulatory standards, rejecting any suggestion of misconduct.

Addressing the allegations, Fidelity Bank clarified that its transactions with ECG were conducted transparently and strictly adhered to procurement laws and industry regulations. The bank denied any irregularities in its processes and affirmed its commitment to the highest standards of corporate governance. Furthermore, it dismissed claims of being ECG’s exclusive banking partner, pointing out that ECG transacts with 17 different financial institutions, holding 61 accounts across them, as noted in a Public Utilities Regulatory Commission (PURC) report.

Fidelity Bank underscored its robust compliance framework, ensuring all transactions are aligned with both local and international regulations. The bank stated that its operations are regularly audited and that it adheres to procurement and regulatory requirements to maintain transparency.

“We have maintained a banking relationship with ECG for over 12 years, long before any of our executives became members of the ECG Board. Therefore, allegations of a conflict of interest are without merit. We fully comply with the Companies Act 2019 and Bank of Ghana regulations regarding conflict management and have not breached any of them,” the bank asserted.

The allegations stem from a report by the CSO coalition, which raised concerns about the bank’s procurement processes with ECG. Although the report did not present specific evidence of misconduct, the CSOs called for further investigation to ensure transparency in public-private partnerships, particularly in critical sectors like electricity.

Fidelity Bank reiterated its commitment to Ghana’s regulatory framework, highlighting its adherence to Bank of Ghana (BoG) guidelines and industry best practices. The bank reassured customers and stakeholders that it is dedicated to upholding the integrity and transparency of its operations.

“The bank sources foreign exchange for numerous customers, including ECG, and we have records of all rates at which U.S. dollars were sold to ECG. During the period in question, the bank sourced US$10.75 million for ECG, in contrast to the false claim of US$40 million per month. Fidelity sold foreign exchange to ECG at rates between 11.8250 and 11.9650, in accordance with Bank of Ghana requirements,” the statement added.

Fidelity Bank expressed its openness to cooperate with any regulatory authorities or third-party auditors that may wish to review its practices. Confident in its procurement processes, the bank stands ready to dispel any doubts surrounding its operations with ECG and to protect its reputation in Ghana’s financial sector.

Source:thehighstreetjournal.com