Accra, Ghana, December 14, 2018//-The National Investment Bank (NIB) board of directors’ effort at recapitalising the state-owned bank is being thwarted by people close to power in the current government.
The management of the bank had officially communicated the existence of NIB without its merger with the Agricultural Development Bank (ADB) thus the NIB would be recapitalised before 31st December 2018, according to a statement from the management of NIB.
As part of the recapitalisation plan, the bank needs to maintain a specific liquidity position. As a result, management will not be able to pay month 13 which is bonus payment where in December two months are paid.
Other options such as salary advance and percentage of provident fund would also affect the liquidity and capital adequacy level of the bank towards the recapitalization.
However, all these laudable plans are thwarted by the invisible hands of people close to power. For instance in statement titled ‘Our Dear Silent Majority’ which is alleged to be issued by them said: “We wish we could join you to thank God in respect of the Graphic and Bloomberg publications to the effect that the merger between NIB and ADB has been cancelled”.
So far as the whistleblowers, who are EXPERTS in the business, NOT ignoramuses, are concerned, there has as not been any merger between NIB and ADB to be cancelled by anybody, they said.
“However, the resolution in respect of that decision must be taken at a shareholders’ meeting before its implementation. At least 14 days notice has to be given before the meeting, meaning that the earliest the shareholders of NIB can meet will be in the first week of 2019 i.e. after the 31st December 2018 deadline”.
Meanwhile, apart from the Good Lord in Heaven, there’s no mortal being on earth who knows how much the Bank requires to meet the minimum capital of GH¢400million, the people close to power added.
Based on the audited accounts, the Bank made a loss in excess of GH¢200million in 2016, excess of GH¢400 million in 2017 (accounts qualified in addition).The management accounts of the bank for the first 11 months of 2018, albeit cooked, indicates that the bank made a loss in excess of GH¢100 million.
Off-head calculations based on the losses made during the periods mentioned above and assuming that the stated capital of NIB stands at GH¢70million, the Bank will require in excess of GH¢1BILLION to meet the minimum capitalofGH¢400 million, they said.
This is equivalent to the minimum capital required to establish 2.5 banks. Instead of jubilating, we advise that you recommend to your masters/sponsors to quickly ascertain how much the Bank requires to meet the minimum capital of GH¢400 million.
They should not massage the amount as they have done since2014 because if the Bank is undercapitalized, it will have adverse effects on the bank sooner than later. This can be achieved by a FORENSIC AUDIT.
They should quickly hold shareholders’ meeting to decide on the future of the Bank. Else the BoG will use Act 930 to decide for the Bank which may be disastrous. It is clear that you do not Understand the issues. This is of big concern to us.
“With regards to the extension of Olive Branch to the Whistleblowers, we wish to state that we have no problem with anybody who is interested and working for the long term survival of the bank but as for the looters and “mismanagers” we will not accept any olive branch from them since we have gone far with the process of petitioning the Office of the Special Prosecutor so that they are investigated and the bank’s resources that they have stolen will be recovered and used to save the bank”.
African Eye Report
