GCB workers say they can turn Bank around if...

Workers of the Ghana Commercial Bank (GCB), on Friday said they could turn the fortunes of the Bank around if they were allowed to operate as a real limited liability company without undue government interference.

They, therefore, asked the government to reconsider its decision to sell its existing 46 per cent shares and that of the Social Security and National Insurance Trust (SSNIT) to a strategic investor since it would not be in the interest of the country.

Addressing a press conference in Accra over what they called "worrying signals" on the planned offloading of the 46.8 per cent government holding in the Bank, Mr Daniel Antwi-Boasiako, Chairman of the Professional and Managerial Workers' Union, said they have been conscious of its social obligations and "have not relented in our efforts to solve all problems identified".

The event is in reaction to the Minster of Finance and Economic Planning's' call for a debate on the GCB divestiture.

The speech was copied to the President, Speaker of Parliament, Minister of Finance and Economic Planning, Chairman of the Board and Management of the GCB, Secretary General of the TUC and the General Secretary of the Industrial and Commercial Workers' Union of the TUC.

The workers he said believed that Ghanaians would be proud to see GCB grow in stature with an identity as a National Bank, adding, "the sacrifices made by the Bank in the economy should not be compromised in the name of divestiture.

Antwi-Boasiako said that GCB had been wrongly accused of creating a bad debt, saying; "we have been cautious not to go public with the level of government interference in our operations.

"We believe that the public knows too well that GCB ... would have performed much better if government had not always twisted our arms."

Mr Antwi-Boasiako, who acted as the Spokesman for the workers, said GCB had demonstrated creditably over the years that it was not only a profitable but also a viable Bank, considering the notable achievements it had chalked within the banking industry and in supporting national development and growth.

He said they had found it necessary to react because they felt short-changed, especially having supported the national economy so much year after year.

"It is our firm belief that left alone on our own, we can address some of the concerns of government without hurting the fabric of this nation's nationhood.

"We have the men and women capable of meeting any challenge."

He noted that the President attested to this when in his 50th anniversary speech he confirmed: "GCB has the professionals from various disciplines running the Bank. It also serves as a resource pool for the banking industry in Ghana."

Mr Antwi-Boasiako said having this in mind and the fact that GCB had been of great service to the nation, it was just fair that the Bank and Ghanaians should reap commensurate returns on their investments and should not be given to foreigners.

He said the Bank had not been the best, but noted that it was not possible that a divested GCB would charge friendly and affordable rates for the saving public considering the low levels of salaries of the average Ghanaian worker, including pensioners and others who have contributed immensely to the economy over the years.

On the computerization programme, Mr Antwi-Boasiako said it was the Management's plan to network all its branches over a three-year period.

"This has been on-going and currently, 25 of the 130 branches are on Wide Area Network with 61 on stand-alone computerized systems."

He said it was not true that GCB could not raise 15 million dollars to computerize and change its operations around.

"We have a programme in place and one must not rush into some of these things. On the basis of direction and scope of the Bank today, we have the capacity and ability to generate the needed funds for the programme. We can easily raise that money from within."

The workers said they regarded as unfair and untrue statements from official quarters that a strategic investor would, given the opportunity, give some of the rural branches tax-exempt status so that they could be maintained.

"We consider such statements as unfair because if a strategic investor would be granted this consideration, why should our majority shareholder not argue on behalf of GCB to grant some of our rural branches tax exempt status now?"

Quoting instances in which GCB had managed to raise money for cocoa and crude oil purchases among other things, the workers said they were more than able to do what was required of them.

On the point of why they did not want the single majority shareholder to decide on what it wanted, the workers said GCB through its operations in the country had grown to become a national bank with very strong ties to the majority of Ghanaians.

Government wholly owned GCB until 1996 when under the Financial Sector Adjustment Programme 30 per cent of the shares were offloaded onto the public through the Ghana Stock Exchange and a further 30 per cent earmarked for a strategic investor. This was increased to 40 per cent following the over subscription of the initial price offer.

Government now holds 46.81 per cent while SSNIT has 17.51 per cent with 35.68 in the hands of private organizations and individual Ghanaians.

Mr Antwi-Boasiako said GCB's reputable management and professional team coupled with its on-going computerization programme and the well designed corporate plan, " we do not find our way clear as to what else the strategic investor would offer the Bank and the great and proud nation of Ghana."

Mrs Comfort Abbey, Chairman of the Ladies Association said; "it is important to state that we are not advocating a confrontation with government or Management. But as individuals whose future would be closely linked to the final outcome of the debate, we are taking advantage of our constitutional right to let the public know our position".