[ 2015-05-27 ]

TUC wants cause of ADB’s dwindling fortunes investigated by government
The Trades Union Congress is calling on government
to investigate the cause of the dwindling fortunes
of the Agricultural Development Bank.

The board of the Bank has put on hold the decision
to float shares to inject more capital into its
operations following an objection by workers and
threats of legal action by the minority in
parliament.

General Secretary of the TUC Kofi Asamoah claims
the bank is borrowing 60 to 100 million cedis from
the interbank market on daily basis to survive.

He also says the bank has for the past three years
not met the Bank of Ghana’s adequacy capital
ratio. He wants government to investigate why the
once well performing bank, is now under
performing.

“We need to ask questions as to what has led ADB
to this state. Government and the President should
delve deeper into this to find out what really has
led ADB to the situation,” he told Joy News’
Joseph Opoku Gakpo.

“We are being told that those who are indebted
to ADB, [the amount] is higher than the amount of
money they want to generate by going public, all
these are things that Ghanaians should be
told….something had gone wrong, and indeed we
need to investigate and come out with what exactly
has gone wrong,” he added.

Asked if a presidential committee would be the way
to go, Mr. Asamoah responded in the affirmative.

Meanwhile, the Socialist Forum of Ghana has joined
calls on government not to allow the bank to
offload it shares.

According to its convener, Kwesi Prat Jnr, the
continuous sale of state owned enterprises by
government is destroying the economy.

“If our governments are not in charge of our
economy, why do you pretend that you can solve the
problem of inflation, or you can make GDP rise,
you are not in charge,” he told a forum on
privatization of state owned enterprises in
Accra.

Minister of State at the Presidency in charge of
Private and Public Sector Rashid Pelpuo however
defended the sale of state owned enterprises by
government. He claimed they have been mismanaged
over the years and used as an avenue to siphon
government funds.

“State involvement in the setting up and running
enterprises has not been successful and cannot be
relied upon as a source of developing our
economies and improving livelihood,” he said.

Source - Joy News

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