The Minority in Parliament opposes BoG’s plan to transfer NIB to ADB.
The NDC MPs claim that there is a conflict of interest because the Bank of Ghana holds more than 60% of ADB’s stake.
Isaac Adongo, the Ranking Member of the Finance Committee, accused the Nana Addo administration of attempting to sell NIB to cronies through the backdoor during a media briefing in Parliament.
The Bolgatanga Central MP has shared his ideas with the government on how to revive the struggling NIB without selling it off.
“It is worth noting that every alternative proposal by Ghanaians to revive NIB, a systemic bank, was ignored.
“NIB currently faces a significant issue of lacking sufficient capital with a GHC2.4 billion deficit. However, upon analyzing NIB’s balance sheet, it becomes clear that restructuring it can generate over GHC2.75 billion. This amount can clear the GHC2.4 billion deficit and create a free shareholders fund and equity of about GHS350 million. This would be advantageous for recapitalization, and the total cash injection would be GH2.8b. It’s puzzling as to why someone would want to sell such a valuable asset for a small amount.
I need to emphasize the importance of the proposals that were disregarded in addressing the current situation.
These include but are not limited to the following:
A few years ago, Nestle Ghana received 24% of its shares from NIB for Ghc50 million which were later valued at Ghc500 million in 2018. It was possible for NIB to make a risk-free cash of Ghc500 million and a capital gain of Ghc450 million if they had sold these shares. Instead, Hon. Ken Ofori Atta decided to exchange the shares for a Ghc500 million government bond and a further Ghc800 million government debt as deposit for shares. Unfortunately, these bonds have been impaired due to the poor conduct of the Finance Minister in the infamous and ongoing DDEP in accordance with IFRS 9.
Read the full statement by the Minority below
