Sunday, 23 June

Kill overly-pillaged, non-profitable NIB – Imani boss

Business
National Investment Bank

State bank National Investment Bank must be done away with, Imani Africa president Franklin Cudjoe has said.

“That bank must just be killed”, he posted on social media following a recent announcement by Finance Minister Mohammed Amin Adam that the government has approved the infusion of some GH¢2.3 billion into the bank.

The money is to recapitalise and restructure NIB, with the first instalment of GH¢400 million expected to be transferred by the end of May 2024.

At the Ministry of Finance’s monthly briefing, Dr Amin Adam outlined the reinvestment plan. 

"As part of our economic growth programme, the Cabinet has approved the restructuring and recapitalisation of NIB. This includes an equity injection of GH¢2.3 billion over the next 12 months, starting with GH¢400 million this month,” he explained.

Dr Amin Adam also highlighted the steps being taken to strengthen NIB’s governance, operational efficiency, supervision, and risk management to ensure its financial stability.

“The plan includes measures to enhance the governance structure, improve operational efficiency, increase supervision, and boost risk management to sustain NIB's financial viability,” he added.

Back in September 2023, the Minority Caucus in Parliament accused the government of planning to sell NIB to its allies. 

They claimed the government's proposal to merge NIB with the Agricultural Development Bank or possibly shut it down was a scheme for state capture. 

“This isn't about NIB's best interests. It's a step towards acquiring NIB and ADB through the back door,” said Isaac Adongo at a press briefing.

Explaining his call for the bank’s ‘killing’, Mr Cudjoe said: “Politicians of all shades have pillaged the state bank and yet, successive governments keep fuelling it with our taxes, especially during elections!”

“The state’s loot-happy bank has never recorded a $1 profit since 2013. Even in a debt-distressed state, we continue this shackling! This is completely unacceptable!” he said.

 

 

 

 

 

Source: ClassFMonline.com