Shareholders cry foul over dividend:

Shareholders of Ghana Commercial Bank (GCB) on Thursday expressed their dissatisfaction over the 100 cedis dividend declared for 1998, saying the amount, as well as increased cost of operations, indicate that the Bank is retrogressing. Total dividend for the year was 16.5 million cedis, representing 51 per cent of profit after tax of 32.3 million cedis. Profit after tax for 1997 was 42.9 million cedis. At the bank's fifth Annual General Meeting in Accra on Thursday, some shareholders said the dividend should be doubled to 200 cedis per share immediately. Other shareholders proposed that the 100 cedis should be accepted as interim dividend, pending the issuance of either 50 or 100 cedis dividend in the near future. The issue, which was the second on the agenda, was dragged for more than one hour, and the Chairman of the Board of Directors, Mr John Sey, had to suspend it to make way for discussion on other matters. The shareholders said operation cost increased more than necessary and could not match profits. Some of the cost they referred to were medical expenses of 926 million cedis in 1998 from 655 million cedis for 1997 and donations of 111 million cedis from 67 million cedis for the same period in 1997. Other costs were fuel and repairs on vehicles and directors' emoluments. They also said the bank should account for monies spent on the current pass book, which they described as "too big and too ugly", and answer why they could not print dairies in Ghana but in London. The bank's total earnings were disbursed as 7.3 per cent in dividend, 42.7 in interest expense, 7.6 in government tax, 7.2 in operating expense, 24 in payment of staff and 11.2 in maintenance and continuity of assets. Mr Sey explained that the bank came up against some constraints during the year but managed to make modest gains, saying they should be grateful for that. He managed to convince the shareholders to accept the 100 cedis dividend with the promise that the bank would do all it can to add more if it is able to get hold of some funds. He assured the shareholders that GCB, in view of the decline in earnings, has put in place measures that would yield more dividends in the future.