The Ghana Armed Forces(GAF) will by the end of 2017 commence operations of its own Bank.
The process, which began some few years ago, stalled due to lack of clarity on the management structure of the Bank.
In June 2016, the BoG granted the GAF a license to operate a savings and loans company.
The company which is in operation is called Services Integrity Savings and Loans Company (SIS&L).
Speaking to the GAF in Takoradi, the Chief of Defence Staff, Lieutenant General O.B Akwa announced that all outstanding issues with the regulator have now been ironed out as the GAF prepares to commence business before 2018.
He was speaking to the GAF in Takoradi when Defence Minister, Dominic Nitiwul paid a two day working visit to the 2 Garrison Unit.
Lieutenant General Akwa assured that “the interest of all ranks of the Armed Forces will be catered for in this business. As at now we are satisfied and at the next Armed Forces Council Meeting, we are going to send our report and when the green light is given before the end of the year, it will start operating”.
“We have changed the governance system to ensure that High Command is represented adequately to ensure that your interest is also taken care of and by so saying, we have included the Sergeant Major on the board of this bank,” he added.
He explained that the decision to have a military High Command on the board of the bank is aimed at getting the military involved in taking critical decisions.
“If there are any concerns at least he will be aware and he will communicate it to us and then back to you,” he said.
He added that the GAF will also employ qualified bankers with banking expertise to help on the board.
“We are getting certified season bankers to be part of the board. So this is a pilot scheme, it’s a bold venture and your interest will never be compromised. We are using the Provident Fund at the moment as our seed capital,” he said.
He disclosed that the GAF has majority share, hence will be instrumental in directing the affairs of the bank, subject to the rules of the regulator.
“The GAF owns the majority share, which is 75 percent. We have contacted the BoG, BoG has said that by their rules and regulations we cannot have 100 percent share, because it is part of their laws that it should be diluted for another shareholder to be part of it”.
“A certified group, known as the Zara Group whose background has been also verified is for now holding that 25 percent but it still possible to dilute that further so that we get a third shareholder on stream. We have done due diligence over the past eight months because of this concern that you have and at the moment we are satisfied that you done what is right”