The Bank of Ghana has backed embattled adb bank’s decision to list on the Ghana Stock Exchange as it continues its investigations into allegation of bad corporate governance and financial malfeasance in the running of the bank.
This comes at a time when adb bank has suspended plans to float shares after agitations by the unionized workers of the bank.
adb has been in the news for some time now following plans by management to list on the bourse , sell the head office of the bank for 10 million cedis and rent a newly built ,already furnished head office for 1 million dollars.
The Central Bank has 30 days to conclude investigations into developments in the bank after being directed by government to do so.
Some Financial analysts have over the years lamented that the Central Bank has been in a conflict of interest position because the regulator owns shares in adb.
According to the governor of the Bank of Ghana Dr. Henry Kofi Wampah, “the problem is that we are the supervisors and normally we should not be supervising institutions that we have shares in. That is why I think it is very important that we look at this share sale and allow it to move on because it helps us remove that conflict of interest that the Central Bank has, in dealing with those banks…so I think we will continue to work towards at least to help achieve that IPO”.
The Bank of Ghana owns 48% stake in the bank while, government owns 52% stake. adb after getting cabinet approval originally wanted to float close to 100 million shares representing about 75% of the bank to raise about 420 million cedis.
Responding to the concerns of the workers , Dr. Wampah said ,”i believe that it is important to carry along all stakeholders , that is why it is important to dialogue with them , I’m not dismissing their complains outright”.
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