Majority shareholder of Agricultural Development Bank (ADB) that is government has directed the bank to put on hold its planned Initial Public Offering (IPO).
[contextly_sidebar id=”yTAfH02LGXyuAg3xGV5z228OSkV8xrWh”]The directive was communicated by the labour and employment minister Haruna Iddrisu after a joint meeting with all parties involved in the raging saga of the bank.
Fears over a likely halt in the IPO launch commenced two weeks ago after workers of the bank led by Union of Industry, Commerce and Finance Workers (UNICOF) fell out with management after it raised issues of operational and financial mismanagement on the part of management.
The workers had threatened to use all means available to them to ensure the IPO is suspended.
The bank was hoping to raise about 420 million cedis through the IPO when over 1.4 million shares are floated.
The shares will be inclusive of bank of Ghana’s shares which is 45 percent and some additional shares from ADB.
But after a joint meeting with both parties and the minister of employment concluded with an agreement that the IPO should be put on hold and also the sale of the bank’s headquarters to also be put on hold while concerns raised by the union are looked into.
According to the union “contrary to the impression being created by management over the years that the bank is doing well, our financials for 2014 indicates that the bank is fast sinking and urgent steps needs to be taken to salvage the dwindling fortunes of the bank”.
Meanwhile Citi Business News has gathered the bank of Ghana is to set up a committee to look into allegations of financial malfeasance raised against the MD of the bank and board members.
The committee is expected to conclude its investigations within thirty days.
By: Vivian Kai Lokko/citifmonline.com/Ghana