ADB near collapse - Minority

Minority Caucus in Parliament has warned of a possible collapse Agricultural Development Bank (ADB) if measures are not put in place to stop the Minister of Finance, Mr. Ken Ofori-Atta, from allegedly forcing management of the bank to grant loans to cronies of the governing New Patriotic Party (NPP).

According to them, Mr. Ofori-Atta has reduced the mandate and role of the minister of finance to some credit disbursement entity in order that they can reward as usual, their political cronies.

Their accusations follow the approval of a GHC10,459,500 million loan from ADB to MacDan Shipping Company by the finance minister.

Addressing the media at plush Job 600 Office Complex building, the Minority Leader and Member of Parliament (MP) for Tamale South constituency in the Northern Region, Mr. Haruna Iddrissu, made reference to a letter that indicated that a credit facility of GHC10,459,500 was earmarked for McDan on the authority of the finance ministry.

This, he noted, was to enable the company undertake its business operations, and in particular, to execute a supply contract awarded by the Ghana Cocoa Board without any due diligence and recourse to banking and financial laws.

The minority leader stressed that best corporate governance practices required that the Board of Directors of ADB approve financial transactions of the bank and not the finance minister

“The minister usurped the authority and functions of the bank and its board of directors, which has curiously not been constituted so we are concerned. So where are the board of directors of the major financial institutions of our country?” he asked.

The minority leader further explained that the NPP-led government had been breaching procurement processes and rules of engagements, since most of boards of state institutions have not been constituted, including the ADB board.

According to him, the failings stemmed from the failure of the president to constitute the requisite governing boards, including that of ADB, to oversee such transactions.

“Serious questions arise as to whether they have demonstrated respect to our procurement processes. Was the contract awarded using the sole-sourcing process? If the answer is yes, then the law requires the approval by the Public Procurement Authority. Where is the board of the Public Procurement Authority? We are not aware that it has been constituted,” he noted.