The Agricultural Development Bank (ADB) has responded to claims made by Samuel Okudzeto Ablakwa, the Member of Parliament for North Tongu, who raised concerns over a contract approved by the board of the financial institution.

In a memo dated Friday, December 27, 2024, and signed by the Acting Chairman of the Board of Directors of ADB, the institution clarified that, as a public entity, it is regulated by the Bank of Ghana, which ensures that its functions remain within the confines of the applicable regulations.

The memo explained that the board does not abdicate its responsibilities and mandates after general elections in the country.

It stated that the board is required to act through its mandated corporate organs, including the Board of Directors.

“The Board of Directors would like to clarify that not only is ADB a public company limited by shares, but it is also a bank and listed on the Ghana Stock Exchange. Thus, it is regulated by both the Bank of Ghana and the Securities and Exchange Commission. These oversight and regulations ensure that the Board of Directors 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 memo stated.

ADB justified the agreement, stating that it was within their authority and rights and in line with the bank’s objectives.

They explained that renewing some existing expiring contracts was essential for the continuous provision of crucial services for the institution.

It has assured the Ghanaian public of its commitment to professionally executing its duties and safeguarding the interests of its stakeholders.

“The ADB Board, in the exercise of its duties, has granted approval for the renewal of some existing but expiring contracts to ensure the 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 Board would like to assure its esteemed customers, shareholders, and the general public that it remains focused and is effectively and professionally discharging its duties to safeguard the interest of all its stakeholders,” the statement concluded.

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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