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Business News of Thursday, 7 May 2015

Source: citifmonline

Bank of Ghana to investigate adb

Citi Business News has gathered the Bank of Ghana (BoG) is to set up a committee to look into allegations of financial malfeasance raised against the Managing Director (MD) and board members of Agricultural Development Bank (adb).

The bank’s MD and board members have been accused by the Union of Industry, Commerce and Finance Workers (UNICOF) of presiding over corrupt practices at the bank.

According to the union, “contrary to the impression being created by management over the years that the bank is doing well, our financials for 2014 indicates that the bank is fast sinking and urgent steps needs to be taken to salvage the dwindling fortunes of the bank”.

Management and board of the bank have also been accused by the union of selling the bank’s assets to cronies and among themselves.

Management’s decision to also sell adb’s headquarters for $10 million whilst it rents a new premises at Ghc1 million have also been criticized by the union.

The bank’s second biggest shareholder which is the Bank of Ghana has however been directed by government to investigate the issues raised following a joint meeting with the union and management of adb and the Minister of Employment, Haruna Iddrisu.

The committee to be set up by the Bank of Ghana is expected to conclude its investigations within 30 days.

The Bank of Ghana is the second biggest shareholder of the bank.

It currently holds 45 percent stake in the bank.

The Bank of Ghana was expected to offload its stake in the bank during the bank’s Initial Public Offer (IPO).

The IPO has however been put on hold to enable further consultations with stakeholders including UNICOF to be concluded.