The Minority in Parliament has expressed its opposition to the government’s plans to either collapse the National Investment Bank (NIB) or merge it with the Agricultural Development Bank (ADB).
Honorable Isaac Adongo, the Member of Parliament for Bawku Central and the minority party’s spokesperson on finance, claimed in a press conference that the government’s plan to combine the National Investment Bank and the Agricultural Development Bank is merely a smokescreen to sell the two institutions to allies of the ruling party as part of efforts to capture state power.
“It is clear that this is not about the interest of NIB. This is the last step towards passing through the back door to acquire NIB and ABD for themselves in a state capture,”
Isaac Adongo
Minority Calls On Government To Pay Its Debt To NIB
The Minority thus, urged the government to settle its debt to bank as well as prescribed additional actions that will ensure its viability.
According to Honorable Isaac Adongo, the government should simply restructure the NIB’s financial statements to swap out all of the debt it owes to the government for equity.
“Government says it doesn’t have money to capitalize the bank, but it has given 500 million debt to NIB, it has given 800 million debt… The two will give you 1.3 billion. It is your money. You owe the bank. The money is already sitting there. Commit to saying that this is my contribution towards capitalisation so that we issue shares to you and move the money to equity”.
Isaac Adongo
The Bawku Central lawmaker indicated that the imminent collapse and subsequent acquisition of the National Investment Bank (NIB) by the Agricultural Development Bank (ADB) will lead to the loss of about 800 jobs.
The Minority Ranking Member on the Finance Committee of Parliament further bemoaned that contractors the National Investment Bank engaged to work on government projects are yet to be paid by the Finance Ministry, a situation he described as very troubling.
“As a result of that, NIB has incurred 1 billion on its loan books, resulting from Ken Ofori-Atta’s refusal to pay, now you say NIB is weak.”
Isaac Adongo
In addition, Mr. Adongo questioned the government’s plan to consider the liquidation of the National Investment Bank, suggesting that there might be other factors at play.
He suggested that the government should seek assistance from the Minority in Parliament, who are ready to offer a group of professionals to work independently and unhindered to revive the National Investment Bank.
“How on earth can you kill such a bank? Ladies and gentlemen unless there is an ulterior motive. They should come to the Minority, we will give them a group of people to work for free, with a clear mandate, no interference and NIB will be the most viable bank. The most well-capitalised bank and the most liquid bank, it is clear that is not about the interest of NIB.”
Isaac Adongo
Recent reports have indicated the possibility of the Agricultural Development Bank (ADB) acquiring the National Investment Bank (NIB), which currently carries liabilities exceeding GHc2 billion.
The National Investment Bank (NIB) was established in 1963 as a state-owned development bank with a mandate to provide financial assistance to key sectors of the Ghanaian economy. Over the years the bank has played a critical role in providing financial support to various sectors of the Ghanaian economy including agriculture, manufacturing and infrastructure development.
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