Councils of Labour joins campaign against sale of ADB

The Accra and Tema District Council of Labour, (A&TDCL) of the Ghana Trades Union Congress, (TUC) has re-affirmed its opposition to government’s intended sale of the Bank of Ghana’s shares in the Agricultural Development Bank to Stanbic Bank in Ghana, a subsidiary of Standard Bank of Africa.

The council added its voice to calls on government to rather raise enough capital as is being done by government institutions such as Ghana Commercial Bank and Ghana Oil Company, (GOIL) to ensure growth of ADB to boost agriculture. Stanbic initially put in a proposal to acquire the 48% of BOG shares in ADB.

Currently sources say that it is also working to secure the remaining 52% shares owned by the government of Ghana.A&TDCL held a demonstration in Accra to register their protest during which resolutions were presented to the Ministers of Finance and Economic Planning and Manpower, Youth and Employment and the mother union TUC.

Since the fuss over the intended government action began, some government ministers, including the Senior Minister, Mr. J.H. Mensah have come out to defend the intended sale of ADB.

But the A&TDCL maintains that, “ADB is not just a bank but a development bank established with the sole objective of providing credit facilities to farmers. Since then ADB has carried out its mandate satisfactorily in spite of the risks involved in financial intermediation in the agricultural sector.”

It stressed that although the BOG may be operationally independent, it remains a state institution whose assets also belong to the state.

“We reaffirm the position of Ghana TUC that the fortunes of agricultural credit should not be entrusted into the hands of a foreign private bank which is essentially motivated by its desire for profit. We are firmly convinced that a nationally owned and controlled ADB is important for the appropriate financial intermediation in the agricultural sector.”

The Chairman of the TDCL, Mr. Wilson Agana addressing the gathering declared, “Posterity will judge us if we do not act well. Now Ghana is buying food products from Cote D’Ivoire. ADB must remain to assist farmers; if not it would be a disaster.”

He hoped the resolution would receive a positive response from government unlike previous ones.

The Deputy Secretary-General of the TUC in Charge of Operations, Mr. Kofi Asamoah noted that previous actions by governments to dispose off national assets did not benefit Ghana and that agriculture which is an important sector of the economy should not be left in the hands of foreigners.

“Government should listen because if bad policies are taken the citizenry suffer. It is our duty as workers to ensure that decisions that affect us negatively are avoided.”

The proposal by Stanbic Bank of South Africa to buy the controlling BOG shares in ADB has generated public debate. The workers of ADB, TUC, some political parties and civil society organisations are leading the fight.

The Integrated Social Development Centre (ISODEC) in a statement on Monday 27, August 2007, called on government and the BoG to take a second look at the formulae for the off-loading of the Bank of Ghana’s controlling shares of 48 per cent in ADB. ISODEC said in spite of the fact that ADB over the years concentrated on Money transfer business, about 60 percent of its investment went to support the agricultural sector.

“ISODEC is convinced that the national interest will be greatly compromised if ADB, the fourth leading bank in Ghana, controlling 60 per cent of all lending to the agricultural sector and whose performance has remained strong in spite of its continued support to the rather high risk agricultural sector is sold to a so-called strategic investor without due consideration of proposed alternative arrangements that keep the bank in the hands of Ghanaians.”

ISODEC expressed the view that the financial sector was an important vestige of the national sovereignty that must not be handed over to what it described as private investors.

The programmes Coordinator of ISODEC Mr. Emmanuel Kuyole in an interview with Public Agenda suggested that like the case of the Commercial Bank, government can float the shares of ADB on the Ghanaian stock market whereby workers can also acquire shares in the bank.

Currently, there are media reports of government’s determination to conclude the sale of the BoG shares in ADB before the end of the year.