RE: STANBIC COMPLETES TAKEOVER OF AGRICULTURAL DEVELOPMENT BANK (ADB)

The Ministry of Finance and Economic Planning has noted with concern that although it had come out twice to clarify media speculations that Government has sold its shares in the Agricultural development bank (ADB) to Stanbic Bank, some sections of the media are still peddling this falsehood.

The Ministry wishes to state that no such decision has been taken by Government. Neither Government nor the Bank of Ghana (BoG) has sold its shares in ADB to Stanbic Bank.

A statement issued by this Ministry on March 13, 2006, and on April 7, 2007 explained that the Government received an unsolicited proposal from the Stanbic Bank sometime last year. A committee made up of officials of the Ministry and the Bank of Ghana was formed to review the proposal and suggest an appropriate response.

In response to the request by the Management of Standard Bank Africa to meet with Officials of BoG and ADB on the sale of BoG’s 48 percent shares, dated June 7, 2007, the Ministry stated that Government did not object to the proposal to start negotiations regarding the sale of the shares. However, the letter stressed that “Government’s final decision on these matters will be made known after discussions with the Bank of Ghana and the Directors and Managers of the ADB have taken place”.

The committee is yet to submit any report to Government. To this end, we wish to re-emphasize that Government has not taken any decision on the sale of its shares in ADB.

Again we wish to state that although the 2007 Budget Statement and Economic Policy states Government’s intention to rationalize her participation in the banking industry, this rationalization would be done taking cognizance of the role these banks play in the Ghanaian economy.

HON. DR. A. AKOTO OSEI, MP
DEPUTY MINISTER