TUC wants cause of ADB’s dwindling fortunes investigated by government

The Trades Union Congress is calling on government to investigate the cause of the dwindling fortunes of the Agricultural Development Bank.

The board of the Bank has put on hold the decision to float shares to inject more capital into its operations following an objection by workers and threats of legal action by the minority in parliament.

General Secretary of the TUC Kofi Asamoah claims the bank is borrowing 60 to 100 million cedis from the interbank market on daily basis to survive.

He also says the bank has for the past three years not met the Bank of Ghana’s adequacy capital ratio. He wants government to investigate why the once well performing bank, is now under performing.

“We need to ask questions as to what has led ADB to this state. Government and the President should delve deeper into this to find out what really has led ADB to the situation,” he told Joy News’ Joseph Opoku Gakpo.

“We are being told that those who are indebted to ADB, [the amount] is higher than the amount of money they want to generate by going public, all these are things that Ghanaians should be told….something had gone wrong, and indeed we need to investigate and come out with what exactly has gone wrong,” he added.

Asked if a presidential committee would be the way to go, Mr. Asamoah responded in the affirmative.

Meanwhile, the Socialist Forum of Ghana has joined calls on government not to allow the bank to offload it shares.

According to its convener, Kwesi Prat Jnr, the continuous sale of state owned enterprises by government is destroying the economy.

“If our governments are not in charge of our economy, why do you pretend that you can solve the problem of inflation, or you can make GDP rise, you are not in charge,” he told a forum on privatization of state owned enterprises in Accra.

Minister of State at the Presidency in charge of Private and Public Sector Rashid Pelpuo however defended the sale of state owned enterprises by government. He claimed they have been mismanaged over the years and used as an avenue to siphon government funds.

“State involvement in the setting up and running enterprises has not been successful and cannot be relied upon as a source of developing our economies and improving livelihood,” he said.

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