The decision of ADB to sell its Head Office for $10million only to pay a monthly rent of GH¢1million for a new office at the Accra Financial Centre has been rejected by staff of the company.
The Bank is paying the one million cedis monthly rent to the AFC, a building it has 10% stake in. The monthly rent excludes utilities consumed. For many in the pro-agric bank, the decision by management demonstrates poor judgment because they do not believe it makes business sense.
Management of the bank, however, insists the decision was a prudent one because about 40% percent of the head office staff were housed in other buildings in the city.
This means utilities were paid separately and other rent charges were borne by the bank.
The managers believe bringing all the staff under one roof is cost-efficient even if they were unable to state exactly how much savings is being made. They said when the valuation of the ADB Headquarters was done, the property was valued at GHc17 million but a competitive bidding earned the bank $10million. They, however, say the deal is yet to be concluded.
According to the workers there is 600million cedis in unrecovered loans sitting on the books of the bank, a situation they fear will erode the bank’s ability to lend. ADB’s stature in banking circles is summed up in its 20th position out of 28th in Ghana. The bank used to be fifth. The bank’s staff are convinced management has been negligent and has demanded the immediate dissolution of the Board.
They are also calling for the removal of the Managing Director, Stephen Kpordzih, while a comprehensive forensic audit is conducted into the operations of the bank.
They also want a reversal of the sale of the ADB house and a suspension of the initial public offering on the stock market. Management has been meeting with the workers’ union over some of the concerns raised.
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