Public and private sectors asked to reduce corruption, inefficiency

Accra, April 30, GNA - Mr. Charles Cofie, Chief Executive Officer of Unilever Ghana Limited, on Thursday called on the public and private sectors to end corruption and inefficiency towards poverty reduction and economic growth.

He said: "Reforming the public sector is not easy but some developed countries through quality leadership have been able to surmount the task of reducing corruption and inefficiency in public and private sectors". Mr. Cofie was speaking at a dinner and awards night, organised by HFC Bank Limited as part of activities marking its 20th anniversary celebrations on the theme:" Twenty Years of Innovative Financial services." He called on government to reflect on the country's economic situation and plan for the way forward.

Mr. Cofie said that the success of business entities would depend on the formulation of effective plans to address challenges facing them. He said the growth of the private sector was key to achieving poverty reduction and economic prosperity in the country and asked government to create a conducive environment for the private sector to contribute effectively to national development. Mr. Cofie noted that competition in the banking industry has led to an increase in operational costs and dwindling of profits. He noted that it was only through recapitalisation and strategic mergers of financial institution that small banks would be able to survive competition in the industry.

Mr. Cofie commended the pioneer management staff of HFC Bank for introducing innovative products such residential mortgage, HFC Unit Trust, and HFC Real Estate Investment Trust. Mr. Asare Akuffo, Managing Director of the bank, said the financial institution was capitalized with 1000 Ghana Cedis but its current market capitalization was now 78,797,262.58 Ghana Cedis. He said 184 public servants have been able to acquire houses under the bank's public sector housing scheme. Mr. Akuffo pledged that the bank would form new partnership with shareholders to address the housing needs of Ghanaians. Awards were presented to some past Board Chairmen and management staff for their dedication that ensured the growth of the company. HFC Bank Ghana Limited was incorporated as Home Finance Company Limited on May 7, 1990.

The bank started operating as a mortgage finance firm and was transformed into a public company on October 5, 1994 when HFC became the only institution in Ghana to issue corporate bonds. In November 2003, Home Finance Company obtained a universal banking license and it added commercial and investment banking to its operations under the name HFC Bank Ghana Limited. It is now a full-blown universal bank, undertaking a variety of retail and wholesale banking services in addition to its savings mobilization, mortgage financing and investment management such as fund management and brokerage services.