No Need for ADB/NIB Merger ― ADB Staff Unions
Government’s bid to merge two state-owned banks―the Agricultural Development Bank (adb) and the National Investment Bank (NIB), may in the coming days, face intense opposition from staff of the institutions.
According to the Professional and Managerial Staff Union (PMSU) of ADB, there will be no need for government to amalgamate both banks since ADB is capable of running its own affairs.
Staff of ADB argues the bank would be well equipped if government pays it the whooping GH¢300 million which it owes it.
Speaking at a Joint National Executive Council Meeting held in Accra, the Chairman of the ADB PMSU, Mr James Obeng-Gyan revealed, the ADB had lots of outstanding facilities valued at not less than GH ¢300 million with Unibank and the Sovereign Bank―two of five banks taken over by the state to form the Consolidated Bank.
“We believe that government, by taking over these banks, has the responsibility of both its assets and liabilities and should pay ADB its debt to make it stand on its own,” Mr Obeng-Gyan said.
“It would be good that the Government comes in to support ADB with these funds whilst we also chase other customers who have defaulted in our loan facilities,” he added.
It could be recalled that somewhere last year, the Finance Minister, Ken Ofori-Atta had announced government’s need in merging the two banks.
According to him, the need to merge the banks was solely to have a strong feat to serve the agriculture sector―specifically, government’s flagship programme, Planting for Food and Jobs (PFJ).
Reports on the merger had however been low as sector analyst projected it was an unhealthy move.
PMSU also believes, the move is not just unhealthy but one that could lead to massive job losses.
Instead of a merger, the PMSU suggests government rather recapitalise the ADB by resourcing it with funds that would be paid back in the near future.
According to the PMSU Chair, the ADB through the leadership of the new MD has already saddled up to become one of the first tier in the financial industry.
“Under the current management led by Dr John Kofi Mensah, Managing Director (MD) of the Bank, and with the support of the leadership of the Union and staff, ADB is growing stronger.” he said.
Mr. Obeng-Gyan however called for thorough investigations into actions that led to the sorry state of the bank adding that, managers who floated shares of the Bank erroneously, were still at post and must be brought to books.
By: Grace Ablewor Sogbey/ firstname.lastname@example.org