Bolgatanga Central MP Isaac Adongo

The ranking member for Finance Committee of Parliament, Isaac Adongo has accused the Governor of the Bank of Ghana (BoG), Dr. Ernest Addison of engaging in conflict of interest in the reported move to allow Agricultural Development Bank (ADB) to acquire the National Investment Bank (NIB).

Dr. Addison has stated the liquidity challenges of NIB makes it difficult to continue to operate on the strength of its current books.

Consequently the Central Bank Governor disclosed as part of the conditions of the IMF facility options are being explored to find solution to the troubles of NIB.

Reports are rife that the government has settled on a decision to allow ADB to acquire NIB.

Isaac Adongo explains the Bank of Ghana through its 100% owned Financial Investment Trust owns 64% stake in ADB therefore any move to hand NIB over to the bank amounts to conflict of interest.

The Member of Parliament for Bolgatanga Central MP who is opposed to such a move wants the Central Bank to rather capitalize NIB and ensure it operates on its own.

Speaking to Starr News Mr. Adongo argued that the Bank of Ghana cannot on its own liquidate the bank without recourse to Parliament according to section 22 of Act 612 of 1963 which established the NIB.

“The Bank shall not be placed in liquidation except pursuant to an Act passed in that behalf and then only in such a manner as the Act shall direct” the Act states.

Mr. Adongo has therefore warned any attempt to liquidate NIB through the backdoor will be illegal and that will be heavily resisted.

Source: Ghana/ Alhassan