Ghana: Conflict of Interest Allegations Arise in ADB-NIB Acquisition, Says Isaac Adongo

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Isaac Adongo, the ranking member of the Finance Committee of Parliament, has accused Dr. Ernest Addison, the Governor of the Bank of Ghana (BoG), of engaging in a conflict of interest regarding the reported move to allow the Agricultural Development Bank (ADB) to acquire the National Investment Bank (NIB).

Dr. Addison has cited NIB’s liquidity challenges, making it difficult for the bank to continue operating based on its current financial position. Consequently, the Central Bank Governor has revealed that, as part of the conditions of the IMF facility, options are being explored to address NIB’s troubles.

There are reports suggesting that the government has decided to allow ADB to acquire NIB. Isaac Adongo argues that the Bank of Ghana, through its wholly-owned Financial Investment Trust, holds a 64% stake in ADB. Therefore, any move to hand over NIB to ADB would constitute a conflict of interest.

The Member of Parliament for Bolgatanga Central opposes this move and instead calls for the Central Bank to capitalize NIB and ensure it operates independently. Adongo points out that, according to section 22 of Act 612 of 1963, which established NIB, the Bank of Ghana cannot liquidate the bank on its own without seeking approval from Parliament.

“The Bank shall not be placed in liquidation except pursuant to an Act passed in that behalf and then only in such a manner as the Act shall direct,” the Act states.

Adongo has warned that any attempt to liquidate NIB through unofficial channels will be illegal and will face strong resistance.

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