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ADB to sell by the end of the year
By Gideon Sackitey, files from Kweku Asare


September 13, Ghanadot - Information reaching Ghanadot offices in Accra indicate that the Agricultural Development Bank is definitely on sale with Government determined to quickly finish the sale as soon as possible.


Ghanadot contacts and news sources mentioned South Africa’s Stanbic Bank Plc as the favourite, saying it is government’s wish to secure the sale by or before the end of this year.


This class of thought argues that in spite of the remarkable strides made by the ADB, Ghana’s only dedicated agric bank over the years its performance in the agric sector has not been progressively impressive, with poor distribution and recovery of payments and loans.


Information also has it that the Board of Directors of Stanbic, the local subsidiary of Standard Bank of South Africa, have intensified their efforts to take over BoG’s 49% shares and the 51% shares of Government.


Other names listed asking for the 49 per cent shares held by the Bank of Ghana is Robo Bank of Netherlands and Merchant Bank Ghana.


Mr Emmanuel Asiedu-Mante a former deputy governor of the Central Bank and now the Chairmanof the Board of Directors said they have confidence in Stanbic’s ability to gain the shares. He described the constant objection of ADB staff to the entire process as very "myopic”, a trend he noted did not look beyond the immediate to medium term benefits that could and would accrue to the Bank.


He said he was aware of a number of deals ongoing between some staff of ADB and some multinational banks ostensibly to stall Stanbic Bank from securing the stakes.

 

"I am aware of all these moves, but I believe that we are on the right track to attain the ultimate, considering our properly put up reputation that has seen us compete strongly on the continent."


Mr Joseph Henry Mensah, Chairman of the National Development Planning Commission said government would go ahead with the sale and would not relent in its efforts at raising money for development.


In an earlier interview with Ghanadot, Mr Mensah who once headed the government economic management team said: “It is not for the staff and management to dictate to government how it should manage the economy.”


He noted that the fears been expressed in certain quarters were actually unfounded and would be critically examined under any kind of arrangement with whoever wins the bid.


Mr Kwadwo Baah-Wiredu, Minister of Finance and Economic Planning, argues that government expects that the privatization of the ADB will enhance growth in the agricultural sector because the sale would come with definite guarantees, which in no way affect government revenue.


He is of the view that “ADB will continue to remain and grow as a major asset of Ghana even after the take over,” Mr Baah-Wiredu assured.


Mr Marius Wait, Head of Personal and Business Banking at Standard Bank of South Africa, confirmed a sweet discussion ongoing with ADB and government over the ADB negotiations.


"We don’t mind partnering with some banks to operate ADB. I believe that some people are holding positions they don’t deserve, and think they could lose them when the bank is privatised, hence the baseless complaints, but we are still determined and well poised to take over the bank to help put Ghana’s economy on a competitive level," he maintained.


This information comes at the end of a two week ultimatum to government by the powerful Tema District Council of Labour (TDCL), which like a number of ADB staff and some former government and opposition figures are opposed to the proposed sale.


The TDCL is currently (Thursday September 13, 2007) on a demonstration following the expiration of the ultimatum to Government to rescind its decision.
The TDCL said the argument that ADB needs a total of 250 million dollars instead of its current 66 million dollars to operate effectively, was highly flawed.


“It is important to point out that this argument is flawed because it is not possible for any financial institution in the world to always have the ability to raise the needed capital required for a specific project. The practice for banks the world over, to place themselves in a position that makes them credit worthy for other financial institutions to make available to them the capital as and when they require,” the TDCL said.


Agricultural industry players say is government’s responsibility to lead the development of the agricultural sector, since it is still in its infant stage despite 50 years of nationhood.

 

Some are of the opinion that the beginnings of a sustainable agricultural base set by Dr Kwame Nkrumah in the early 1960’s and some other leaders after him were ad-hoc and lacked a forward looking strategy.


Even though Ghana is known to be an agricultural based economy, with over 70 per cent of its population engaged in the agricultural sector, it is yet to be self sufficient in food security and annually have to resort to food imports to meet the annual shortages of food production deficits.


Gideon Sackitey, with files from Kweku Asare, Ghanadot, Accra, September 13, 2007





 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 

 

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