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Concerns are being raised in the financial sector over the recent appointment of a new Director General and board for the Securities and Exchange Commission (SEC).

The commission has been without a board and substantive Director General since last year.

It follows the retirement of the former Director General Dr Adu Anane Antwi and the dissolution of the board last year.

Early this year there were a lot of appeals from stakeholders in the finance industry for the President to quicken moves to fill in the vacancies.

Citi Business News understands however appointments have been made to the board and they were sworn in on Monday 4th September, 2017.

While the Vice President of Databank, Mr Daniel Ogbarmey Tetteh has also been appointed as the new Director General of the Commission.

However a few days after the move, there have been increasing agitations in the industry with a number of key questions being raised over the appointments.

Wrongful appointment of Director General

The first question being raised is the appointment of the new Director General Mr Daniel Ogbarmey Tetteh, which is being described as unconstitutional.

According to Article 195 (1) of the constitution ‘subject to the provisions of this constitution, the power to appoint persons to hold or act in an office in the public service shall vest in the President, acting in accordance with the advice of the governing council of the service concerned given in consultation with the Public Services Commission’.

However Citi Business News’ checks reveal at the time Mr. Daniel Ogbarmey Tetteh was appointed; SEC had no governing council and thus is appointment was done without the consultation as stated.

Mr. Daniel Ogbarmey Tetteh was one of 10 board members sworn in on Monday having been appointed Director General.

But Finance Minister Ken Ofori Atta responding to the matter said the rules were not flouted.

“Unless you think he is not competent, and that is the key thing… I believe he is,” he stated.

Finance Minister’s representative under scrutiny

Concerns are also being raised over the Finance Ministry’s representative on the board.

According to the Securities Act 4 d( ii) the finance ministry must have a representative on the board.

Citi Business News checks reveal a deputy finance minister Mr Adu Boahen has been appointed, as the ministry’s representative, a move which has also been questioned, because the ministry supervisors the commission.

A representative from the ministry is to report to the finance minister, however having a deputy Finance Minister to assume that role, will mean in cases where the Finance Minister is unavailable, the deputy will act as the substantive minister, making it impossible.

Responding to these, Ken Ofori Atta downplayed those concerns.

“Not that I know of I am quite happy with that and I think the Board is very competitive…when you find somebody like Dr. Yeboah Amoa who built our GSE from 11 companies in the 1990s to where it is now; from 0.1 to GDP to about 35 of GDP, it brings confidence and that attracts investors to any system of that nature.”

Termination of appointments of Deputy DGs

Meanwhile Citi Business Checks reveal the board has ten members instead of the eleven, while the contract of the current two Deputy Director Generals – Mr. Alexander Williams and Mr. Lawrence Yirenkyi – Boafo have been terminated.

Per the Securities Industry Act 2016, the board must include the Director General and his two deputies, but the new list available has none of the current two.