Bank of Ghana governor lied over GH¢2bn bailout – Adongo

Isaac Adongo MP

A member of the Finance Committee of Parliament and Bolgatanga Central MP, Isaac Adongo Friday accused the Central Bank Governor. Dr. Ernest Addison of deceiving the public on the role and status of the Ghana Amalgamated Trust (GAT).

GAT is an arrangement of private pension funds to inject GH¢2 billion into supporting solvent and well-run indigenous banks, which were otherwise having difficulties meeting the new minimum capital requirement of GH¢400 million.

The banks are the merged Omni/Sahel Sahara Bank, Universal Merchant Bank, Prudential Bank, ADB and NIB.

Mr Adongo’s accusation comes in the wake of mounting pressure on the Central Bank and the government to disclose the real faces behind the GH¢2 billion support to the five banks under the GAT arrangement.

Speaking on Morning Starr Friday, Mr Adongo said the BOG governor has not been sincere about the status of the Trust to the public.

“No pension fund had invested one cedi in any of those five banks. That’s a fact…Ghana Amalgamated Trust was created on the 17th of December 2018, issued with the certificate to commence business the same day. When did they raise the 2 billion and from who by 31stDecember?

“So that’s a complete lie. You know who owns Ghana Amalgamated Trust? National Trust Holding Company (NTHC). Is that the pension funds that he’s talking about? The National Trust Holding Company owns hundred per cent of Ghana Amalgamated Trust as a nominee shareholder for government…when they say nominee shareholder, as representing government and because it’s a nominee shareholder it doesn’t have to cough up stated capital of two billion,” he told Morning Starr host Francis Abban.

Disclosing faces behind GAT will boost confidence

Following the announcement of the package on January 4, 2018, the Central Bank came under heavy accusation for eliminating some local banks from benefiting under the scheme—an accusation Dr Ernest Addison, governor of the Central Bank dismissed as untenable, arguing his outfit had nothing to do with the selection of the five banks.

Speaking on the Business Edition Wednesday, Banking Consultant Dr Richmond Atuahene contends that revealing the identity of the sponsors would boost investor confidence in the bond to be issued to raise the GH¢2 billion.

“If you want me to issue a bond who is backing it? Can this institution, the GAT worth their salt go into the market and say that we are issuing this so back us? Whatever way you look at it there are a few physical issues.

“If I was going to buy that bond, I would ask who the sponsors are. You tell me GAT, then who set the GAT up? What’s the ownership, the ownership identity? If there’s no ownership identity it would be very difficult for me to participate in it because at the end of it all should something go wrong it means I won’t have a fallback position,” he said.


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