Government has directed Bank of Ghana (BoG) to review its ownership stake in the Agricultural Development Bank in order to allow easy execution of its (ADB) plans to list on the Ghana Stock Exchange.
The BoG holds about 48% stake of the indigenous agric bank, with the rest of the 52% owned by government. ADB has indicated of plans to list on the stock market by the end of the year.
Minister of Trade and Industry, Haruna Iddrisu speaking to Citi Business News said it amounts to conflict of interest for the Bank of Ghana to be a regulator and a shareholder in ADB.
“There is naturally a conflict. The bank of Ghana cannot be a regulator and at the same time an owner and a player with some 48% shares in ADB. The president has tasked the Bank of Ghana to review its ownership and interest in ADB to allow for a floatation of shares on the Ghana stock exchange market.”
Mr. Iddrisu said this at the inauguration of the board of directors of the Agric Development Bank, Ghana Statistical Service and Social Security and National insurance (SSNIT).
The Minister reassured the ADB board that government will support a smooth offload of BoG’s stake in the bank.
“I’m reliably informed that your board will be inheriting a very important strategic plan which has redefined that strategic plan of ADB. Have the assurance of government that we’ll help manage the exit of the bank of Ghana in order that it doesn’t compromise your capitalization.”
Nana Soglo Allon IV was sworn in as the chairman of ADB. The other board members are Abdul-Samed Iddrisu, Maurice Tanko Abisa Seidu, Nancy Dakwa Ampofo, Samuel Kofi Dapaah, Caroline Otoo, Stephen Kpordzih and Major (Rtd) Mahama Samuel Tara.
Source: Citifmonline.com
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