Sale of 100million ADB shares halted

The Agricultural Development Bank has suspended plans to float about 100 million shares on the Ghana Stock Exchange until consultations with the workers union are concluded.

The decision was arrived at after a meeting between management of the Bank, the Workers Union and the Employment and Labour Relations Minister, Haruna Iddrisu.

The leadership of the workers has accused the management of exercising poor judgment, supervising an abysmal performance and conflict of interest.

The sale of its headquarters was also discussed. According to the minister the most “contentious issue” was the plan to offload 70% of government’s shares in the pro-Agric bank.

Explaining the decision to Joy News’ Elton Brobbey, the Employment minister said the processes of enlisting can go ahead “only subject to further consultations with other stakeholders, in particular UNICOF” (Union of Industry, Commerce and Finance workers).

The broader policy decision of enlisting nonetheless “remains same”, he said.

The Board is also directed to halt the sale of the head office.

“You are not to proceed further with the sale of ADB house” Haruna Iddrisu stressed.

ADB House is not for sale
The Initial Public Offer had become a divisive issue with workers and management taking entrenched positions.

The workers said they didn't understand why ADB needed to raise over ȼ200million through the stock exchange because it had an uncollected debt of over 600million sitting on its books.

Managing Director of ADB Stephen Kpordzih had explained the importance of listing on the Ghana Stock Exchange.

“The listing on the Ghana Stock Exchange is a means to basically give Ghanaians a sense of ownership, expand the shareholder base and increase the equity base of ADB. We are determined to remain an indigenous institution, hence our choice to go to the Ghana Stock Exchange to raise additional capital.

“This will enhance access to funding and boost the competitiveness of ADB. The end result will be very beneficial to the Bank, stakeholders, country and our customers” Mr. Kpordzih pointed out.

The IPO, the sale of the ADB headquarters amongst other issues informed agitations by the bank’s staff.

The Minority in parliament latched onto the workers' agitations and warned they will oppose the fund-raising move in court.

Story by Ghana|myjoyonline.com