Govt Has Ofloaded GCB Shares - Senior Minister

According to the Chronicle, Mr. J. H. Mensah, Senior Minister has disclosed that at the time that the public were debating on the proposed sale of the Ghana Commercial Bank (GCB), the government had already offloaded its shares to the SSNIT and to some individuals

Senior Minister Lets Cat Out on Sale of GCB Shares

The Senior Minister, Hon. J. H. Mensah, has disclosed that at the time that the public were debating on the proposed sale of the Ghana Commercial Bank (GCB), the government had already offloaded its shares to the Social Security and National Insurance Trust (SSNIT) and to some individuals trading on the Ghana Stock Exchange.

The reason for selling off the shares, the Senior Minister explained, is to enable the bank to meet its demand by providing financial needs to the investment sector.

According to Hon. Mensah, who is also the member of Parliamentfor Sunyani East, in this era of golden age of business the banks require high financial outlay to be able to render support to investors.

The Senior Minister said this at the commissioning of the Brong Ahafo Regional Branch of the National Investment Bank (NIB). The NIB had acquired its modern banking premises from the Ghana Standard Bank at Sunyani, which had closed its Brong Ahafo regional branch and re-located it to Techiman.

On NIB itself, Hon. Mensah indicated that the bank needed heavy capital investment to meet its operational objective.

He said last year the bank made a profit of $45 million, which, according to him, was not enough to meet its constitutional demand by rendering financial support to the industrial sector of the country.


Hon. Mensah said the bank was established in 19963 to render industrial support and other financial services to the transport and other sectors, which were not benefiting from the commercial banking system.


The aim of the government for establishing the bank was not to make profit for itself, but to ensure the growth of the local industries in the country, he noted.


The Senior Minister emphasized that the government is not responsible for providing financial services to its nationals, but to provide basic social immunities like water, health, education, roads and host of others, hence its plan to divert the financial institutions to the private sector.


Hon. Mensah registered his protest against the way and manner some major banks in the country close their branches, particularly in the regions.

He challenged the central bank (Bank of Ghana) to prevent such banks from closing their branches at the regional capitals.


The Senior Minister mentioned in particular, the Standard Chartered Bank, which had closed some of its branches at Sunyani, Cape Coast and Bolgatanga recently.


The board chairman of the NIB, Dr. Charles Jabuni, revealed that for the past three years a lot of support has been given to the industrial sector in this country by the government and the NIB was the pillar behind this.


He said the bank actively participated in this direction by providing specialized funds, such as the export development investment fund, which is sourced for industrial development and to boost the capabilities of the ordinary Ghanaian.


The chairman said that the new management strategy of the bank has re-positioned itself for growth of its assets base.

According to him, the bank over last two years had increased its loan to deposit ratio, whilst its loans deposits had all recorded a positive growth.


The managing director of the bank, Mr. Daniel Gyimah, said from 1991 to 2001 the bank had faced a lot of difficulties, but now has overcome them, following a strategic management restructuring.


A timber merchant, based at Berekum, Mr. Ernest Apraku, has appealed to the government not to divest the NIB, as planned.


According to Mr. Apraku, who is the managing director of the ABTS Company Ltd at Berekum, if the bank is divested it would deprive the low income worker of saving with it and also would make the new management close down some of the branches.


In another development, GNA reports that the Brong Ahafo Regional Secretariat of National Democratic Congress (NDC) has called on President Kufuor, the New Patriotic Party (NPP) and all well-meaning Ghanaians to save the government's policy of zero tolerance for corruption "from total coma and ultimate demise."

It also asked the government to publish reports of the Auditor General and Serious Fraud Office (SFO) since January 2001 and subject perpetrators of alleged corruption to thorough scrutiny and prosecution.


In a statement signed by Mr. Mohammed Kwaku Doku, Regional Secretary, the NDC noted: "Such is the only way the government can exonerate itself from the shackles of alleged corruption."


The regional branch of the party said the fight against corruption was a shared responsibility for the government and all Ghanaians and as such, "no amount of insinuations, invectives and aspersions by government spokespersons and paid NPP activists would divert our attention from holding the NPP government accountable to the people."


The statement noted that long before Transparency International came out with its report on the level of corruption in the country, there had been reports and allegations of corruption levelled against some government appointees by the media and state institutions including the SFO, Auditor General and Parliament.


The NDC Regional branch recalled that when there was growing public concern about corruption or perceived corruption in the judiciary, Parliament put in place a committee that toured the regions and held series of fora "on this unacceptable practice" and submitted a report.

"It is therefore, sad to note that if a credible institution like Transparency International whose report the NPP, then in opposition dwelt on to accuse the NDC of corruption, is today harping on this canker as a serious drawback to investment and economic growth, the NPP spin doctors would defy their claim of transparency and good governance and regrettably engineer every available medium not only to defend the indefensible but also embark on a campaign of attacks, insults and vituperations against personalities who come out to champion the crusade against corruption in the NPP government."


The statement recalled that the NDC Flagbearer, Professor Mills recently criticized the government over the way and manner it had so far handled the issue of corruption, "culminating in the Transparency International's latest report".


The regional branch said it had expected Mr. Kwabena Agyapong, government spokesperson, to answer Professor Mills', as to whether the alleged corrupt practices by some Ministers and government functionaries were true or not "and not to choose the crude way of insults and other irresponsible utterances."


trading on the Ghana Stock Exchange.