The forceful and disgraceful attempts by some individuals to wrench Merchant Bank Ghana Limited from the hands of the Social Security and National Trust (SSNIT) and the ordinary contributors to the fund is gradually approaching the zenith.
Like birds of prey hovering over a carcass, powerful and influential men and women in designer suits, on Thursday November 14, 2013 met at the Merchant Bank Headquarters Annex near Plus 233 at North Ridge in Accra to re-examine the Sales and Purchase Agreement for an eventual takeover of the Bank.
The meeting is reported to have been a heated one as some members of the group raised concerns about the media expose on the deal and advised that the brokers tread cautiously. Already, three members of the Board have resigned their positions ostensibly because their conscience will not allow them to preside over a deal that has been described by various civil society groups as ‘daylight Robbery’.
Mrs. Marian Banor, Chairperson of the Board was first to resign. Then on Tuesday November 12, 2013 Mr. Joe Tetteh, Managing Director of the Bank and Professor Bill Pupulampu also resigned their positions.
In her resignation letter, Mrs. Banor said “my resignation is prompted by recent events which in my view erode the confidence in the role and work of the Board of Directors”.
“On the grounds of principle, therefore, I consider that increasingly my role has become redundant and I do not want to compromise the firm principles of corporate and institutional governance which have guided my service to the country, the Bank and the Board as its Chair,” she added.
On November 1, 2013, the Bank of Ghana in a press release signed by the bank’s secretary announced that Fortiz Private Equity Fund Ltd. has reached an agreement with SSNIT and SIC Life to take over the majority stake in Merchant Bank
The statement said the Bank of Ghana had reviewed the agreement of the parties and granted its approval. However, Scandal can authoritatively report that the Sales and Purchase Agreement is yet to be concluded and signed and that, last Thursday’s meeting was called to review the agreement.
Similarly, the shareholders agreement is also yet to be concluded and signed. Why the Bank of Ghana hastily put out their press release to convey the impression that an agreement had been reached and also announced its approval of the deal when they knew that no such agreement had been signed, cannot be overlooked.
The whole story of the sale of Merchant is yet to be told. Scandal is reliably informed that Mr. Tony Lithur, President Mahama’s Lawyer at the recent election petition hearing, is also the lawyer of Fortiz Private Equity Fund at the negotiations to buy Merchant Bank. He has been sighted several times at the Merchant Bank since negotiations for the sale began. He was however not at last Thursday’s grand meeting at the Merchant Bank Annex on the Sales and Purchase Agreement.
Fortiz Private Equity, a wholly owned Ghanaian equity fund registered only June this year 2013, and has three shareholders namely Mawuli Hedo (51%), Angela Hedo, (29%) and Doris Benueme (20%). Mr. Hedo is a Ghanaian and also Managing Director of First Banc in Accra. PRIOR TO JOINING FIRSTBANC, MR. HEDO WORKED AT SAS FINANCE GROUP WHERE HE WAS THE SENIOR CORPORATE ADVISOR. Doris Benueme is a Togolese.
There are suspicions that some powerful Ghanaian politicians who have been at the receiving end of former President Rawlings and are sometimes also described as ‘greedy bastards’ are the real owners of First Banc. Scandal is yet to confirm these allegations.
First Rand Bank offered Ghc199.3 million for only 75 percent of Merchant Bank, but was rejected. Fortiz is offering Ghc90 million for 90 percent of the Bank and the Bank of Ghana says it has approved of the agreement.
Fortiz Private Equity Fund has a stated capital of Ghc5.0 million and would not have qualified under Bank of Ghana’s own regulations if it was seeking a license to enter the Banking Industry. The size of Fortiz Private Equity Fund remains a secret as the source of funds they will use both to buy the shares and to inject into Merchant Bank.
Merchant Bank has Ghc175 million bad and doubtful debts on its books, but the Fortiz agreement does not include the debt. Fortiz says it can only recover 30 percent of the debt and that 70 percent will be the responsibility of SSNIT. It is clear that the idea is to wipe out those debts. The top five debtors of the Bank include Engineers and Planners, Myroc Company and Western Steel Company.
Meanwhile, Centre for Freedom and Accuracy has petitioned President Mahama to intervene in the sale. The Centre has also threatened to go to court if the arrangement to sell Merchant Bank to Fortiz is not reversed.
