GTUC gives govt two-week ultimatum

Tema, Aug. 07, GNA -- The Ghana Trades Union Congress (TUC), has given the government a two-week ultimatum to change its intention to sell Bank of Ghana's (BoG) 48 per cent shares in Agricultural Development Bank (ADB) or members would embark on a demonstration. The ultimatum was given by a consensus of members of the Tema District Council of GTUC during an emergency meeting on Tuesday. The meeting was to discuss government's intention to sell BOG's shares in ADB to Standard Bank of Africa (STANBIC).

Mr Kofi Asamoah, Deputy General Secretary of GTUC, said even though government denied reports of its intention to sell BOG shares, "we are aware that government has given the go ahead to STANBIC to hold meetings with officials of BOG and management of ADB in pursuit of the acquisition of the 48 per cent shares".

He said GTUC was concerned with government's decision because ADB's mission of building the agricultural sector of the economy could not be achieved by STANBIC.

Mr Asamoah noted that private institutions were established to make profits rather than growing the economy and emphasizing the importance of ADB to the economy, he said, "ADB is not just a bank, but a development bank established in 1965 with the sole objective of providing credit facilities to farmers."

"It has satisfactorily carried out its mandate over the years, despite risks involved in financial intermediation in the agricultural sector," he added.

Comparing contributions of ADB and STANBIC in the agricultural sector, Mr Asamoah said between 2000 and 2007, ADB earned 41 million dollars in returns on its Western Union activities.

He said it had an average agricultural portfolio of GH=A2 60 million (600 billion cedis) between 2001 and 2006 as well as financing export activities of major agricultural exporters.

On STANBIC, Mr Asamoah said its total share in the agricultural portfolio was three per cent, adding, "STANBIC's commitment in agriculture in 2006 was only GH=A2 4.5 million (45 billion cedis) which was just about eight per cent of ADB's total commitment of GH=A254.4 million (544 billion cedis) during the same period".

"Government should stop its intention of selling the 48 per cent shares and rather encourage STANBIC and other banks interested in developing the agricultural sector, to supplement efforts of ADB by establishing branches in remote farming areas, "he added. Mr Kofi Davor, Secretary General of Union of Industry, Commerce and Finance Workers (UNICOF) said Ghana's agricultural sector was still developing.

He said government should lead the development of the sector, rather than leaving it in the hands of the private sector, since agriculture was a very important sector of the economy contributing over 40 per cent of the national income. 07 Aug. 07