BoG Orders ARB Apex MD Out

The Bank of Ghana (BoG) has directed the Managing Director of ARB Apex Bank, Kwadwo Aye Kusi to proceed on leave effective November 28, 2016.

After several years, the Central Bank now wants to launch full-scale investigations into the issues raised particularly because the bank's management has been associated with bad corporate governance and financial malfeasance since Mr Aye Kusi came into office.

A letter from the Bank of Ghana addressed to the Board Chairman of ARB Apex Bank read: “For unfettered access to documents and information, it is required that the subject of investigations – Managing Director – stays out of office.”

It also stated that “the Managing Director is therefore directed to proceed on his outstanding leave, with effect from Monday, 28^th November 2016, until investigations are concluded.”

While some staff petitioned the Central Bank over issues of bad corporate governance, disregard for the bank's policies and financial malfeasance, the workers' union of ARB Apex Bank lodged a complaint with the Bank of Ghana (BoG), indicating that failure to address the grievances could lead to the collapse the bank.

It would be recalled that the National Union of Industry, Commerce and Finance Workers (UNICOF), lately called on the Central Bank not to renew the tenure of Kwadwo Aye Kusi, who was investigated by EOCO last year in connection with some procurement irregularities.

A statement from UNICOF last week declared two days of red-alert by all staff of the bank which regulates rural banks in Ghana across the country.

In view of this, members of the union across the country were directed to wear red arm and wrist bands.

“The red has become necessary to let stakeholders understand that the UNICOF and staff are not happy about the events at the bank.

“The autocratic nature of the board chairman and his personal relationship with the MD are affecting the governance of the bank. A split board that appointed the MD will affect the progress of the bank.”

According to the Central Bank, it has asked the Financial Stability Department to conduct investigations into the allegations, adding the investigations were expected to cover a period of two weeks spanning November 21, 2016 to December 2, 2016.

“The team may need to call randomly on directors, management and staff of ARB Apex Bank to clarify issues,” the letter to the Board Chair further stated.

Recently, workers of ARB Apex Bank across the country staged nationwide protest against MD and chairman of the bank's board.

By Samuel Boadi
[email protected]