[ 2015-04-29 ]

ADB sells head office for $10m; rents new one for ₵1m monthly
The decision of ADB to sell its Head Office for
$10million only to pay a monthly rent of
GHC1million for a new office has caused a stir and
dissatisfaction amongst the bank’s staff.

The bank is now headquartered at the Accra
Financial Centre after moving from its ADB house
off the Independence Avenue in Accra.

It is paying the one million cedis monthly rent to
the AFC, a building it has 10% stake in.

The monthly rent excludes utilities consumed.

For many in the pro-agric bank, the decision by
management demonstrates poor judgment because they
do not believe it makes business sense.

Management of the bank, however, insist the
decision was a prudent one because about 40%
percent of the head office staff were housed in
other buildings in the city.

This means utilities were paid separately and
other rent charges were borne by the bank.

The managers believe bringing all the staff under
one roof is cost-efficient even if they were
unable to state exactly how much savings is being
made. They said when the valuation of the ADB
Headquarters was done, the property was valued at
GHc17 million but a competitive bidding earned the
bank $10million. They, however, say the deal is
yet to be concluded.

Management sources also told Joy News the claim
that the ADB land used for the Accra Financial
Centre was worth $10 million was untrue. They say
the land was valued at about $2.5 million.

Nonetheless, the sale of the old office has served
as a rallying point for the staff to question the
managerial acumen of the Managing Director of the
bank, Mr. Stephen Kpordzih, and the Board of
Directors.

The workers say there is 600million cedis in
unrecovered loans sitting on the books of the
bank, a situation they fear will erode the
bank’s ability to lend.

ADB’s stature in banking circles is summed up in
its 20th position out of 28th in Ghana. The bank
used to be fifth.

The bank’s staff are convinced management has
been negligent and has demanded the immediate
dissolution of the Board.

They are also calling for the removal of the
Managing Director, Stephen Kpordzih, while a
comprehensive forensic audit is conducted into the
operations of the bank.

They also want a reversal of the sale of the ADB
house and a suspension of the initial public
offering on the stock market.

Management has been meeting with the workers’
union over some of the concerns raised

Source - MyjoyOnline

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