Home   >   Business   >   Business News   >   201311
Stop Sale Of Merchant Bank To Fortiz   
  << Prev  |  Next >>
Comments ( 0 )     Email    Print
Andrew Awuni
Related Stories
The Centre for Freedom and Accuracy has registered its protest in the strongest of terms against the sale of Merchant Bank Ghana Limited to Fortiz Private Equity Fund Ltd.

According to the centre, the sale drew so many questions and could neither benefit the Ghanaian worker nor the national economy as a whole.

The Executive Director of the centre, Mr Andrew Awuni, stated this at a press conference in Accra yesterday.

While calling on the Social Security and National Insurance Trust (SSNIT) to stop the deal, Mr Awuni urged the TUC and all workers unions and associations; the Employers Association, GNAT, NAGRAT and all concerned Ghanaians to rise up against what it described as ‘’day light robbery.’’

According to the Executive Director, the rationale for the sale had never been clear and what the SSNIT sought to achieve from the sale of its shares had also never been made clear either.

“As it stands, all we know is that Merchant Bank is being sold, but what makes the sale even more curious is the way it is being executed now,’’ Mr Awuni stated.

Considering the number of institutions that expressed interest in buying Merchant Bank and actually presented proposals for the purchase, Mr Awuni said, the centre became curious “about this new company called Fortiz, which, in the judgement of SSNIT and the Bank of Ghana, presented the best proposal.’’

“Is Merchant Bank looking for a strategic partner or an injection of new capital or better management?’’ Mr Awuni asked.

Fortiz Equity Fund has a stated capital of GH˘5.0 million and according to Mr Awuni, “how can a company with a stated capital of GH˘5.0 million take over Merchant Bank which has a stated capital of GH˘68 million?”

“The Bank of Ghana recently increased the minimum stated capital for all new entrants into the banking industry to GH˘120 million. This is a requirement before a banking licence is issued,’’ Mr Awuni noted.

According to Mr Awuni, Fortiz Equity Fund Ltd, the company, whose bid to buy Merchant Bank has been approved, is actually five months old as a registered company.

He explained that it was registered to do business only in June 2013 while its Holding Company, which is Fortiz Investment Holdings, was also incorporated in June 2013 with a stated capital of GH˘5.0 million.

The Executive Director stated that Fortiz’s bid to buy Merchant Bank was the only known transaction it had ever made.

He pointed out that there was no record anywhere of any transaction that Fortiz had ever conducted and that it was understandable, considering it that it was registered and incorporated only in June 2013, soon after the Rand Bank deal failed.

“It will seem to us that Fortiz Private Equity Fund Ltd was created solely for the purpose of purchasing Merchant Bank,” Mr Awuni wondered.
Source: Daily Graphic

Comments ( 0 ): Post Your Comments >>

Disclaimer: Opinions expressed here are those of the writers and do not reflect those of Peacefmonline.com. Peacefmonline.com accepts no responsibility legal or otherwise for their accuracy of content. Please report any inappropriate content to us, and we will evaluate it as a matter of priority.
Featured Video