Tue, 28 May 2024 Social News

Politically exposed persons at NIB may destabilise operations – Bia East MP

  Tue, 28 May 2024
Politically exposed persons at NIB may destabilise operations  Bia East MP

Deputy Ranking Member on the Finance Committee of Parliament, Richard Acheampong, has raised concerns over the government's decision to appoint politically exposed individuals to the management of the National Investment Bank (NIB).

According to Mr Acheampong, such appointments could have severe repercussions for the bank’s operations and overall stability.

The Bia East MP argues that the appointment of politically connected individuals to key management positions at NIB may lead to a lack of confidence among investors and depositors, particularly those aligned with opposition parties.

He believes that these depositors and investors, dissatisfied with the current management, might choose to withdraw their deposits and investments, potentially destabilising the bank.

His remarks come in the wake of the government's recent approval of GH¢2.3 billion to recapitalise the National Investment Bank. While this financial injection is intended to strengthen the bank's capital base and ensure its continued operation, the Bia East legislator insists that the decision to place politically exposed persons at the helm could undermine these efforts.

“People are complaining about the good corporate governance of NIB. It is part of the problem, so if you appoint a politically exposed person to manage state institutions, not any other state institutions, or a financial institution, many people who are also affiliated with another political party are going to withdraw their investment from the bank.

“So that was a very bad decision taken by the government. But we are yet to get to know the details of this GH¢2.3 billion and we will look at the terms.”