The Board of Directors of the Agricultural Development Bank (ADB) Plc has explained that the renewal of a $750,000 contract this month is not exceptional but a normal process, necessary for the continuous provision of critical and essential services to the bank.

The Board said in a statement that the contract was approved within laid rules, adding that the directors were conscious of the need to remain professional in the discharge of their duties.

"The Board would like to assure its esteemed customers, shareholders, and the general public that it remains focused and it is effectively and professionally discharging its duties to safeguard the interest of all its stakeholders," the statement said.

The ADB Board was reacting to media reports that the bank had renewed a $750,000 contract late in December at a time when the transition into a new administration was taking place.

In the statement, ADB's Board of Directors said dual oversights by the Bank of Ghana and the Securities and Exchange Commission ensured that the Board functions within the confines of regulation. 

"As a company, ADB acts through its duly mandated corporate organs, including the Board of Directors.  

"To ensure effective and efficient corporate governance and guarantee its continuous safe operation, the Board does not freeze or abdicate its responsibility after general elections."  

"The ADB Board, in the exercise of its duties, has granted approval for the renewal of some existing but expiring contracts to ensure continuous provision of critical services to the bank. Every contract renewal approved by the Board was within its authority and in furtherance of the objectives of the bank," the statement emphasised.

Background

The Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, in a post on X on December 26, 2024, blew the whistle on the approval of the contract, describing it as a sleazy midnight deal for an electronic servicing agreement that bypassed essential processes such as auditing and negotiations.

"Intercepted memos continue to expose reckless and unpatriotic officials of the Akufo-Addo/Bawumia government for awarding sleazy midnight contracts and insisting on full payments before January 7, 2025. The Board of the Agricultural Development Bank (ADB) met three days ago and hurriedly approved a controversial electronic servicing agreement valued at US$750,000.00 (GH¢12 million).

"Deep-throat sources at ADB tell me they are under extreme political pressure to effect full payment by tomorrow, December 27, 2024. Top ADB insiders are shocked at the Board's decision because, apart from this deal not going through the audit department, negotiations with the vendor, Virtual Security Africa, have not been concluded, particularly as the main agreement is still in draft form," the MP wrote in a social media post on Thursday, December 26, 2024.

He added, “The mad rush for midnight contracts and payments has reached uncontrollable levels despite a clear caution from the President-elect's Transition Team — a caution consistent with what the NPP demanded in 2016. Fortunately, we have intercepted a considerable number of these internal memos on these dubious transactions, and the public officials who succumb to unlawful political pressure and effect payments will have themselves to blame after January 7, 2025," the MP wrote.



MAG/MA

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