Business News of 2014-01-08

Merbank Sale: Organised Labour to challenge deal in court

Organised Labour is contemplating going to the law courts to challenge the acquisition of Merchant Bank Limited by Fortiz Private Equity Fund.
The Labour Unions' plan for a possible court action was made on Tuesday January 7, 2014 after a meeting at the Trades Union Congress (TUC) boardroom to discuss the controversial deal.
Fortiz Private Equity Fund currently owns 90% of Merchant Bank.
The Labour Unions are optimistic a court action would "ensure transparency and accountability".
They added that responses from the Social Security and National Insurance Trust (SSNIT) and Bank of Ghana for a suspension of the deal prior to Merbank's acquisition by Fortiz were "unsatisfactory and unacceptable".
According to Organised Labour, both SSNIT and the central bank had indicated that they cannot engage them in discussions because the matter was already in court.
These were revealed in a letter signed by Kofi Asamoah, TUC General Secretary, on behalf of the Labour Unions.
The Merchant Bank-Fortiz deal has been embroiled in a fierce controversy since the process begun late last year.
The Speaker of Parliament, Doe Adjaho, on Monday threw out a motion by the Minority Members of Parliament for a Parliamentary inquiry into the sale of the bank to Fortiz.