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TUC opposes ADB shares sale
Accra, Sept. 20, Ghanadot/GNA - The Ghana Trades Union
Congress (TUC) on Thursday asked government to suspend the
proposed sale of the Bank of Ghana’s 48 per cent shares in
the Agricultural Development Bank (ADB) and called for an
open debate on the country’s agriculture policy and the
future of ADB in the short, medium and long-term.
In a statement signed by Mr Kwasi Adu-Amankwah,
Secretary-General of the TUC, the labour group said no
compelling reasons had been advanced by government to
justify the sale of Bank of Ghana’s shares in ADB.
The statement was in a direct response to the Chairman of
the National Development Planning Commission, Mr J.H
Mensah’s earlier statement which criticised the TUC for its
stand on the sale of Bank of Ghana shares to a strategic
foreign investor.
In particular, Mr Mensah accused “some TUC officials” of
abusing trade union principles in trying to influence
government policy under the threat of industrial action over
the matter and of simply protesting against change that
might lead to the loss of some jobs, without waiting to see
the terms of the proposed sale arrangement.
He then advised that policy issues in the management of the
economy should not be settled in an atmosphere of pressure
and agitation.
The TUC said; “the idea of a sale to a strategic foreign
investor is not the best way forward for Ghana’s
agricultural transformation”.
The TUC said the suspension of the sale would ensure that
policy decisions that had long-term implications for farmers
and the nation were taken after full consideration of all
relevant issues and viable options and not simply because
the World Bank/IMF so dictate.
Mr Adu-Amankwah said the TUC found it necessary to respond
to the views expressed by Mr Mensah, an economist and
politician in order to clarify things for the discerning
Ghanaian public and make known its position on the policy
question of the sale of the shares to Standard Bank of
Africa/Stanbic Bank.
“In the first place, while agreeing that questions of policy
should not be resolved on the basis of emotions, with
respect, we think the Hon. MP got it completely wrong when
he suggested that policy issues have nothing to do with
political agitation and nationalism.
“In the view of Ghana TUC, issues of policy are political
and may, where need be, require political agitation.”
Mr Adu-Amankwa said policy issues were political and
involved making choices which had differential implications
for different social groups in our society.
“This is especially so when in many cases policy issues are
determined in favour of vested interest groups and not
necessarily to promote the public interest,” the statement
said, adding that “nationalism as a policy perspective that
seeks to promote the national interest, is in our view a
legitimate consideration in making policy choices”.
The TUC said Mr Mensah’s position showed that it was an
unfortunate position based on unexamined assumptions and a
huge dose of lack of confidence in the Ghanaian.
In the view of the TUC, “if the expectation of agricultural
transformation, which is critical for our economic progress,
is to be hinged on a strategic foreign investor, then God
save Ghana!”
The question that needed to be asked, according to the TUC,
“is what has government done over the years to raise the
necessary additional resources for ADB to service the
millions of rural farmers and small-scale industry as a
development bank?”
“It is necessary that the Honourable MP first gives
Ghanaians an answer to this question before suggesting the
option of a strategic investor as the only viable solution.
“Secondly, Mr Mensah’s belief that it is only when Ghanaians
see a foreign investor in ADB that we shall have enough
confidence to patronise the purchase of newly-issued shares
regrettably betrays a subservient attitude to the magic of
the foreign investor and a lack of confidence in Ghanaians.”
The TUC said it found this most disappointing in a
politician and economist of Mr Mensah’s standing and was of
the view that the recent highly successful issue of new
shares through the stock exchange by the Ghana Commercial
Bank (GCB), provided indication that Ghanaians did not need
a foreign strategic investor in order to invest in an
otherwise profitable business.
“The view of the TUC is that if what is critical for ADB to
meet its historic mission is adequate financial resources,
then what should be done is to transform ADB into a public
company by listing it on the stock exchange and raising the
necessary financial resources through the issue of new
shares.”
It noted that neither the NDC government in the past nor the
NPP government today had attempted this obvious first step,
yet Mr Mensah wanted Ghanaians to believe that only by
selling the Bank of Ghana’s shares in ADB to a strategic
foreign investor would there be a beginning of the
resolution of the problems facing agricultural
transformation in Ghana.
“It is too simple a solution to the problems of agriculture
in Ghana, which is beset by manifold problems, not the least
of which is unfair competition from imported agricultural
products that enjoy subsidies at home,” the statement said.
“We find such a fundamental policy issue as the
transformation of agriculture as a foundation for Ghana’s
economic development cannot be addressed from the limited
perspective of sale of ADB to a foreign investor.”
What is required, it said was a comprehensive national
policy for the transformation of the agricultural sector to
be adopted after extensive discussion and debate on the
fundamentals of the policy, the strategic objective and the
timelines from year to year for various targets.
“It is only within that framework that the role of a
transformed and better resourced ADB can be meaningful.”
The TUC also said it found it rather amazing that Mr Mensah
did not see anything wrong with government not informing
Ghanaians on its policy decision on the reorganisation of
ADB, but was busy negotiating with possible strategic
investors.
“What ought to have been done, in conformity with
Government’s accountability obligations to citizens, should
have been first to open up debate on the policy question of
the future of ADB and its reorganisation within the larger
framework of government agricultural policy.
Addressing the substantive arguments by Mr Mensah, the TUC
said he was correct when he said there was the need to
transform agriculture and not simply make profits as the
sole purpose of establishing the ADB and that without a
substantial improvement in the productivity of our farmers,
“we could forget about Ghana’s economic ambitions.”
“Again, he correctly observes that the substantial majority
of rural farmers need to be equipped with tools and
technology far superior to the present cutlass and hoe
technology,” he said.
GNA
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