The Ghana Amalgamated Trust Plc (GAT) has debunked the allegations raised by Hon. Mahama Ayariga, noting that it is not true that the Trust has offloaded its shares to its third party nominees without giving an opportunity to original Ghanaian shareholders to buy same.

A statement issued in Accra by the Trust stated that GAT is currently not involved in any sale of its shareholdings in the selected banks.

The Trust was reacting to a letter titled “Cease and Desist Order to GAT: Stop the Fraud”, dated December 20, 2021 issued by Mahama Ayariga (Member of Parliament for Bawku Central) to the Governor of the Bank of Ghana and copied to the media.

GAT argued in the statement that it has only proposed to undertake a public offer of its own shares (not the shares in the selected banks) to investors in the capital market for the purpose.

The statement further indicated that if GAT decided to sell its shareholding in the selected banks, it would comply with the existing arrangement under the investment agreements to give priority (or right of first offer) to the relevant existing shareholders.

The Trust noted that contrary to what has been stated in the letter, the Minister of Finance did not state anywhere in the 2022 Budget Statement that GAT would offload its shares to private individuals.

“The relevant portions on GAT can be found at paragraphs 400 to 404 and 420 of the Budget Statement, where the emphasis was on the intention to build on the success of GAT by converting it into a permanent investment vehicle to raise long-term capital to provide equity investments to strengthen financial institutions, and restructure companies in the hospitality, education, and export-oriented industries that were devastated by COVID-19.”
GAT Statement

The statement indicated that the call for investigation into Board Chairman and CEO of GAT for coordinating with the Ministry of Finance and the Bank of Ghana to implement the questionable transaction has no basis.

Mahama Ayariga Martin Amiu — Hon. Mahama Ayariga

Sales of GAT Shares Will Always Be Transparent

The Trust reiterated that it conducted all its affairs and activities including its investment in the selected banks in compliance with applicable laws.

The Trust stated that regarding any potential sale of GAT’s shares in selected banks, “when the time comes, GAT would do so in accordance with the investment agreements and applicable law.”

The Trust also rubbished allegations of GAT’s appointment of political directors who are representatives of Government, which the MP described as problematic as false and had no basis.

The Management of the Trust stated that the Trust has not nominated or appointed any representative of Government to any of the selected banks.

“All nominees of GAT for the Boards of the selected banks had been selected in accordance with the Bank of Ghana’s directives on corporate governance and fit and proper persons and other applicable law. GAT has selected its nominee directors on the basis of competence and skill sets relevant for each selected bank.”
GAT Statement

It noted GAT has influenced the selection of quality independent directors for the selected banks to ensure a balanced approach to board deliberations and decision making.

“The Bank of Ghana goes through a rigorous process of vetting and approving the directors of the selected banks in accordance with the fit and proper person test”.
GAT Statement

GAT stated that the evidence is rather clear that there has been an upturn in the performance of the banks as shown in the publicly reported financials of the selected banks.

The Trust expressed the hope that the statement brings clarity to the author of the letter, the public and the potential investors of GAT.

The Trust concluded that it has kept its mandate, been open, transparent and compliant with all applicable laws and would continue to do so.