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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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