Sale of Merchant Bank to Fortiz clean deal - Dr Wampah

The Bank of Ghana has given the Merchant Bank sale a clean bill of health.

The Governor, Dr. Kofi Wampah, told journalists Wednesday that due diligence was done on the sale.

Ninety percent of the Bank is being sold to Fortiz Equity Fund for US$90m.

Anti-graft campaigner Andrew Awuni and the main opposition New Patriotic Party (NPP) have raised concerns about the sale.

The Executive Director of the Centre for Freedom and Accuracy (CFA) is currently challenging the sale in court.

According to Mr. Awuni who is taking this action in his capacity as a Ghanaian and one who contributes to the Social Security and National Insurance Fund (SSNIT), “We have seen the SHARE PURCHASE and SUBSCRIPTION AGREEMENT and can tell Ghanaians that the Merchant Bank Sale is more of a dash than a sale”.

SSNIT, has through a press statement, said it is satisfied with the sale of Merchant Bank to Fortiz Private Equity Fund Limited since their proposal was the best among the other bidders which included the second largest bank in South Africa - First Rand.

Mr Awuni argues strongly that Fortiz were registered just about five months ago and are not fit to buy Merchant Bank since they do not have any proven record of bank management.

At a recent press conference, Awuni said: “The Bank of Ghana is yet to carry out due diligence on the Fortiz Private Equity Fund Limited and also ascertain the appropriateness of Fortiz’s role in the transaction from another key regulator, the Securities and Exchange Commission”.

Governor Dr. Wampah however told the press Wednesday that proper due diligence was carried out about the sale.

He said the Bank gave approval to sale pending further due diligence, a situation, which he said is not an out of the ordinary thing in the banking sector.

He also dismissed claims that Fortiz lacks the capital capacity to buy Merchant Bank.