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Business News of Monday, 21 January 2019


Federation of Labour heads to court over use of private funds to support ‘ailing’ banks

Finance Minister, Ken Ofori-Atta Finance Minister, Ken Ofori-Atta

General Secretary for the Federation of Labour, Abraham Koomson, has kicked against government’s decision to use private funds under the Ghana Amalgamated Trust (GAT) to fund under-capitalized banks.

The Ghana Amalgamated Trust was introduced by the Ministry of Finance to support well-run but under-capitalized banks to meet the new minimum capital requirement as part of the banking sector clean-up.

The five beneficiary banks are ADB, NIB, merged Omni Bank and Sahel Sahara, Universal Merchant Bank, and Prudential Bank.

Government has, however, asked the five banks under the Ghana Amalgamated Trust arrangement not consider the support they are receiving as a bailout.

Speaking to Kaakyire Ofori Ayim on Atinka AM Drive, General Secretary for the Federation of Labour, Abraham Koomson revealed that the Federation of Labour was not consulted in the discussions leading to the formation of the GAT.

He added that if the need arises, the federation will head to court to restrain government from the Ghana Amalgamated Trust (GAT).

“The trustees are given the right to take such decisions that will inure to the benefit of the fund owners and we expect that they will take the right decision, but it looks like there is a certain arrangement to present the GAT as a worthy investment arrangement and we think it is quite dangerous”, he added.