Ranking member of the Finance Committee in Parliament, Isaac Adongo, has raised allegations of a conflict of interest against Dr. Ernest Addison, the Governor of the Bank of Ghana (BoG), in connection to the reported proposal of allowing the Agricultural Development Bank (ADB) to acquire the National Investment Bank (NIB).

Dr. Addison has cited the liquidity challenges faced by NIB, making it increasingly difficult for the bank to sustain its operations based on its current financial status. Consequently, the Central Bank Governor has revealed that, as part of the conditions associated with the IMF facility, various options are being explored to address the challenges confronting NIB.

There are widespread reports suggesting that the government has settled on a decision to permit ADB to take over NIB.

Isaac Adongo contends that the Bank of Ghana, which owns a 64% stake in ADB through its 100% owned Financial Investment Trust, is thus potentially conflicted in this matter. Transferring NIB to ADB, in his view, would constitute a conflict of interest.

The Member of Parliament representing Bolgatanga Central is opposed to this proposed move and advocates for the Central Bank to inject capital into NIB and ensure its independent operation.

In an interview with Starr News, Mr. Adongo argued that, according to section 22 of Act 612 of 1963, which established NIB, the Bank of Ghana cannot unilaterally liquidate the bank without seeking approval from Parliament.

“The Bank shall not be placed in liquidation except pursuant to an Act passed in that behalf and then only in such a manner as the Act shall direct” the Act states.

Mr. Adongo has therefore warned any attempt to liquidate NIB through the backdoor will be illegal and that will be heavily resisted.