Bank of Ghana investigates ARB APEX Bank

The Governor of the Bank of Ghana (BOG) Dr. Abdul-Nashiru Issahaku has disclosed of an ongoing investigation into the current happening at the ARB Apex Bank, “Central Bank” for all Rural and Community Banks” (RCBs) in Ghana.

According to Dr. Abdul-Nashiru Issahaku the central bank is aware of the rising tension within the bank and have received memos from the worker’s union in that regard.

Dr. Abdul-Nashiru Issahaku who was responding to a question at a press conference concluding the 73RD Monetary Policy Committee meeting in Accra said the central bank has begun engaging UNICOF the worker’s union and management of the ARB APRX bank over the issue.

“there have been an issue concerning the APEX Bank, yes we are aware and are investigating the issue. In fact, our time is engaging both the management apex bank and UNICOF now.”

“I have the memos come flying up and down. So is something that we actually involved in trying to resolve,” he said.

Union demands APEX BANK MD’s head

The Dr. Abdul-Nashiru Issahaku’s comment comes at a time that the National Union of Industry, Commerce and Finance Workers (UNICOF) has said the central bank should not renew the term of office of Kwadwo Aye Kusi, Managing Director of the ARB Apex Bank, who came under EOCO investigations last year regarding some procurement irregularities.

A statement from UNICOF, copied to the B&FT, has declared two days of red-alert by all staff of the bank which regulates rural banks in Ghana, across the country.

In view of this, members of the union across the country have been directed to have a red piece of material hanged around their necks or wrists.

“The red has become necessary to let stakeholders understand that the UNICOF and staff are not happy about the events at the bank.

The autocratic nature of the board chairman and his personal relationship with the MD are affecting the governance of the bank. A split board that appointed the MD will affect the progress of the bank.”

Whilst asking that the Economic and Organised Crime Office (ECOCO) makes public its findings, the union also wants an “independent investigation” into some allegations made against Mr. Kwadwo Aye Kusi, in a petition sent to the Board of Directors dated July 25, 2016, and signed by one George Essien (CFE) of the bank.

The 15-page petition, copied to Governor of the Bank of Ghana and the Finance Minister, alleges that the MD had, over the years, acted in bad faith and utter disregard for procedures, board directives and the L.I. 1825 (ARB APEX BANK LIMITED REGULATION 2006).

EOCO writes to ARB APEX BANK

In 2015 there were several media reports of the MD being investigated by the Economic and Organized Crime Office (EOCO) over some fraudulent dealings.

According to a letter from EOCO at the time, the investigation regarded some procurement fraud and other serious offenses at the bank.

The letter there were irregularities regarding the procurement of a communication link for wide area network, sale of bank vehicles to staff and the purchase of vehicles by the bank.

The letter then requested the MD to furnish the Executive Director of EOCO information on the bank’s agreement with STL Ghana Limited and a copy of the board’s approval for the procurement.

EOCO also requested the bank to provide the type of vehicle, date of original purchase, cost of vehicle, date of disposal, and name of purchase at the time of disposal and amount paid on sale of the bank’s vehicles to staff.

The EOCO further requested the MD of ARB Apex Bank to furnish it with the schedule of all vehicles purchased by the bank from 2010 to 2014, including vehicle brand, model, year of purchase, the dealer and conditions associated with the sale.

The ARB Apex Bank Limited is a “mini”-central bank for the Rural & Community Banks (RCBs), registered as a public limited liability company in January, 2000.

Among other functions, it keeps accounts, maintains primary cash reserves, monitors, inspects and supervises, as well as ensures compliance by the RCBs and lends funds to them.