The majority caucus in parliament has said the National Investment Bank (NIB) is not bankrupt and up for sale as claimed by their colleagues in the minority.
According to Majority Chief Whip, Frank Annoh-Dompreh, the bank is in a better financial position than it was under the erstwhile National Democratic Congress government.
At a press conference held by the minority on September 28, it said the bank had been ran aground because government had failed to repay loans it guaranteed for contractors from the bank to undertake development projects despite certificates being raised by the contractors.
But Mr Annoh-Dompreh, MP, Nsawam/Adoagyiri, told parliamentary reporters in Accra yesterday that the “baseless” claims by the minority only went to derail the confidence people had, not only in the bank but the financial sector.
“It is not true that the treasury of the bank is gone bankrupt. All documentations prove otherwise.
“Yes, NIB needs recapitalisation but the treasury of NIB is not bankrupt. The treasury of the NIB is not being run like it used to be under their reign where over GH¢500 million was given to the non-banking sector against the code of ethics of the banking sector,” he said.
The majority, Mr Annoh-Dompreh said, was ready and willing to work with the minority to make a case for government to recapitalise the bank to deliver on its mandate – to support industry.
Instead of “running down the bank”, the chief whip said the current management of the bank deserves commendation for turning around the fortunes of the bank.
He said the NIB, as inherited from the erstwhile government had a concentration of loan in construction sector with high loan portfolios and 90 per cent of the treasury concentrated on construction at the detriment of other sectors.
The bank also had weak information technology infrastructure, high cost of service contract and required GH¢160 million daily from Bank of Ghana for operation, he said.
All the above prompted a government guarantee in 2019 which raked in GH¢857 million as recapitalisation from the Ghana Amalgamated Trust and with good management, the fruits of that investment was evident in the better position the bank finds itself, he said.
As a result of the sound management exhibited by the current management, the majority chief whip said 60 policies have since been introduced to suit all category of the customers the lawmaker said.
“I don’t know if any bank in our country has become more relevant and become more innovative than the NIB.
“Government has put in some good efforts in recapitalising the bank but it still stands to reason that because of the challenges in the financial sector, the bank needs some recapitalisation to remain relevant (and that is what we all should be championing as members of parliament)”, he stated.
In his view, anything contrary to that would be unnecessary politicisation of the bank for parochial partisan interest as the 2024 general elections beckon.
“Our colleagues should stop the politicisation of all matters, especially if they relate to the financial sector. It is most unfortunate. I think they have to be more patriotic in matters of this nature which can affect the well-being of the nation.”
BY JULIUS YAO PETETSI
