Government Wants To Sell NIB And ADB To Cronies – Minority Fights Proposed Merger

The Minority in Parliament has expressed its opposition to the government’s plans to either collapse the National Investment Bank (NIB) or merge it with the Agricultural Development Bank (ADB).

The government has been working over the years to merge ADB and NIB to create the National Development Bank due to the struggles of the two banks.

Addressing journalists in Parliament, Minority Spokesperson on Finance, Isaac Adongo, alleged that this plan is merely a smokescreen to sell off the two banks after their merger to government cronies as part of State capture efforts.

“It is clear that this is not about the interest of NIB. This is the last step towards passing through the back door to acquire NIB and ABD for themselves in a state capture,” he said on Thursday, September 28.

The Minority has asked the government to pay the debt owed to the bank and further proscribed measures that will make it viable.

“Government should just restructure the balance sheet of NIB to swap all the NIB debt that it owes to government and give government equity. Government says it doesn’t have money to capitalize the bank, but it has given 500 million debt to NIB, it has given 800 million debt… The two will give you 1.3 billion. It is your money. You owe the bank. The money is already sitting there. Commit to saying that this is my contributing towards capitalisation so that we issue shares to you and move the money to equity.

Isaac Adongo said the move by the imminent collapse and subsequent acquisition by ADB will lead to the loss of about 800 jobs.

The MP further indicated that contractors NIB engaged to work on government projects are yet to be paid by the Finance Ministry.

“As a result of that, NIB has incurred 1 billion on its load books, resulting from Ken Ofori-Atta’s refusal to pay, now you say NIB is week.”