ADB in senseless
expenditure Part 2
by Justice Lee Adoboe
ACCRA, June
1—Further investigations have revealed more worrying information
about the wantonness of some levels of expenditure at the troubled
Agricultural Development Bank (ADB).
Some of
these expenditure are such that they have imposed a high overhead cost on the
bank annually, a cost it cannot sustain hence its current situation.
A case in point is the fact that ADB has to
cough up at least U.S $ 4000.00, allegedly to pay the Managing
Director (MD) Stephen Kpordzie for living in his own private residence
instead of the bank’s official residence while working for the bank.
As part of
our investigations and inquisitions into the causes of the bank’s current position
of non-profitability, it was discovered that, ADB had had its official
residence for the MD which is located at Roman Ridge allegedly disposed
of in 2011.
This investigative
team was told by very credible sources that the process to
sell that property began in 2010, barely a year after Kpordzie’s appointment as
MD and was concluded in 20011.
“The core
function of the bank is banking, not property or estates management and so we
must divest our interest in these landed properties and concentrate on our core
mandate,” Kpordzie argued, according to our sources.
Suffice it
to say that instead of the sale of the bank’s landed property resulting in any
spectacular annual performances, the bank has rather experienced
dwindling fortunes, under the current MD’s watch, hence the attempt to raise
capital through an IPO.
The bank is
saddled with an annual expenditure of a U.S $ 4000.00 or 15.200 Ghana cedis monthly rent which amounts to monthly rent of
U.S $ 48,000 or 182,200
Ghana cedis rent for the MD alone.
Contrary to
Kpordzie’s belief and practice, managers of some state institutions have
rather found the wisdom in investing in their own accommodation facilities to
save such gargantuan costs in future.
The
Petroleum Commission which has a core mandate of regulating the upstream sector
of the petroleum industry found it fiscally prudent to invest in its own office
space along the N1 Highway.
In a similar manner, the National Health
Insurance Authority (NHIA) which manages the health expenditure of its
subscribers on behalf of the state, has also found it prudent to invest in its
own office complex not only in the capital, but also in some districts.
After
working from rented premises since 1996 as Scancom Limited, operators of MTN is
currently putting up a magnificent edifice along the Independent Avenue,
just close to Vanguard Assurance, adjacent to the ADB headquarters which
Stephen Kpordzie and his Board of Directors have earmarked for sale for a
paltry U.S $ 17 million.
In the
face of ample evidence to demonstrate that it is more prudent for such
institutions to own their office edifices, the ADB board and management have
rather chosen under very questionable circumstances to pay 12 million
Ghana Cedis annually working from the Accra Financial Centre (AFC)
constructed by the Rand Merchant Bank (RMB) of South Africa.
The bank
used to pay U.S $ 500,000 for the Citizen Kofi building
situated between Danquah Circle and Labone Junction for the operations of some
of the headquarters staff.
For the four other
buildings rented for similar purposes: The St Kizito Catholic Church facility
close to Nima Round-about; Ring Road Central (RRC) Branch and the Achimota
Branch the bank pays not more than U.S $ 300.000 00.
Together
with the U.S $ 500,000 for Citizen
Kofi, the total rent charge for these four subsidiary headquarters operations
at the current exchange rate works up to about 3.1 million Ghana cedis
annually.
Adding
the 300.000 Ghana cedis on maintenance of the headquarters building,
ADB’s annual expenditure for its headquarters office accommodation totals
about 3.4 million Ghana cedis.
However,
the board and management have chosen to dispose of the headquarters
building for a paltry U.S $ 17 million
dollars and rather pay an annual rent for the four floors in the AFC, a
building constructed on ADB’s own land which according to Mr. Kpordzie was
valued at U.S $ 2.4 million.
Meanwhile, workers of ADB who are in the thick of agitations against the
alleged mismanagement of the bank have reported to UNICOF, their mother
union that personnel of state security apparatus have started meddling in the
purely internal management issue.
In a
related development the Tema District Council of Labor issued a stern warning
to the management of ADB last Thursday that they would resist any attempt
to sell off the bank to any foreign entity.
They
maintained that ADB is a brain-child of the Tema District Council of Labour,
hence they would not sit down to have the place sold out.
More
soon…
Source: Justice
Lee Adoboe
