The National Democratic Congress (NDC) Minority in Parliament, has accused the Finance Minister, Ken Ofori Atta, of contravening best practice by approving a credit facility of GHc10,459,500 from the Agricultural Development Bank (adb).
The credit facility in question was granted to the McDan Shipping Company.
According to the Minority, the failings stem from the failure of the President to constitute the requisite governing boards, including that of adb, to oversee such transactions.
Addressing the press in Accra on Tuesday, the Minority Leader, Haruna Iddrisu, appealed to the media “to probe further whether this contract was awarded through an open competitive tender process to guarantee and ensure value for money.”
He also accused Mr. Ofori-Atta of reducing “the mandate and role of the Ministry of Finance to some credit disbursement entity in order that they can reward the political cronies.”
Mr. Idrissu, during the press conference, made reference to a letter that indicated that a credit facility of GHc10,459,500 was earmarked for McDan on the authority of the Finance Ministry.
“This is to enable the company [McDan] to undertake its business operations, and in particular, to execute a supply contract awarded by the Ghana Cocoa Board,” the stated.
No due diligence
The Minority Leader reminded that best corporate governance practices require that the Board of Directors approve financial transactions of the bank and not the Finance Minister
“The minister usurped the authority and functions of the Bank and its Board of Directors, which has curiously not been constituted so we are concerned. So where are the board of directors of the major financial institutions of our country?”
Per the Minority’s assessment, Mr. Iddrissu added that “it was clear that no due diligence was conducted by even the management of the bank before the minister’s approval.”