A number of cocoa purchasing clerks and agents of local buying companies discount Akuafo cheques for farmers by paying them instant cash, thus depriving them of the full value of the cheques as well as the related bonuses to be earned.

Mr Philip Cobbinah, Deputy Chief Manager, Banking Supervision Department of the Bank of Ghana, who disclosed this at Nsoatre in Brong Ahafo at the weekend, explained that these clerks and agents were supposed to issue cheques to the farmers to be cashed at the banks.

"These practices defeat the very purpose for which the Akuafo cheque system was re-launched", he said and warned the perpetrators to stop forthwith "since they will not be spared when the law catches up with them."

Addressing the 18th annual general meeting of the Nsoatreman Rural Bank, the Chief Manager noted that the Akuafo cheque was re-launched recently to ensure prompt payment to farmers and to inculcate in them the habit of saving a portion of their earnings.

He urged rural and community bank managements and staff to report any agents of local buying companies or purchasing clerks who used cash instead of the Akuafo cheques to purchase cocoa from the farmers to the appropriate authorities for disciplinary action to be taken against them.

Mr Cobbinah gave the assurance that the Central Bank would continue to exercise strict surveillance over the rural banks to instil sanity and discipline into their operations.

He advised the Boards and Managements of rural banks to adopt sound banking practices relating to the recruitment of staff based on competence, integrity, commitment and loyalty, he said.

The Chief Manager added that the two bodies must also ensure that the granting of credit facilities should be done with due cognisance to existing rules and legal framework, coupled with constant, vigorous monitoring and supervision.

"The Bank of Ghana is convinced that with dedication and commitment by directors, management and staff in the discharge of their legitimate duties, coupled with the goodwill of the general public, the potentials of rural banks would be harnessed through the provision of formidable financial intermediation".

Mr Cobbinah noted that this would stimulate and transform the rural subsistence economy into lucrative micro and medium scale enterprises, capable of creating employment and wealth as well as supporting the development of appropriate infrastructure to ultimately raise the standard of living of the people in their areas of operation.

Mr Emmanuel Yaw Sarpong, Deputy Head of Banking Operations and Treasury of ARB Apex Bank, who stood in for Mr Emmanuel Kwapong, Managing Director, said the Bank was placing greater emphasis on technical training to equip staff with the required skills for effective service delivery.

Much more attention would be given to the training in micro finance methodologies to be able to effectively support the operations of small-scale customers, thereby enabling rural banks to fulfil their mandate of effectively assisting the communities in which they operate and also support the government's poverty reduction programme, he said.

The Deputy Head added that the ARB Apex Bank was collaborating closely with the various government programmes including the Social Investment Fund, the Women's Development Fund and the Village Infrastructure Project to fight the poverty war.

Mr Sarpong announced that branches of the Bank would be established in Takoradi, Kumasi, Bolgatanga, Sunyani and Accra by the end of 2005 to enable it to deliver more services to rural banks.

Mr Samuel Kusi Asomah, Chairman of the Board of Directors of Nsoatreman Rural Bank said the bank ended the year 2002 with a net operating profit of 622,264,347 million cedis, an increase of 38.22 per cent over the previous year's profit of 450,155,119 million cedis.

He deplored the low patronage of the bank by people in the catchment area and appealed to all inhabitants in the area to change and help promote the bank to grow.

The Chairman said the bank gave scholarships to 30 needy JSS and 12 SSS students in the year under review, as well as providing social amenities to the communities.

He appealed to loan beneficiaries to make efforts to repay them to avoid being arraigned before court, saying the recalcitrant attitude of some beneficiaries posed a serious threat to the bank's efficient loan administration in 2002.