A Professor of Finance and the Dean of the School of Business at the University of Cape Coast, has asked the Bank of Ghana (BoG) to swiftly act on the appointment of the parliamentary candidate as Managing Director (MD) of the National Investment Bank (NIB).
The appointment by President Akufo-Addo has sparked outrage with many including governance expert Prof Baffour Agyeman-Duah and the Minority in Parliament, civil society groups raising objection.
Prof John Gartchie Gatsi is equally unenthused about Tweneboah Kodua Fokuo heading the Bank, when he is now an active politician waiting to hit the campaign trail.
The lecturer is therefore asking the regulator to step in so that the potential “political risk” in the appointment does not manifest.
He expressed concern saying the appointment, if allowed to stand, will mean that Mr. Fokuo will have divided attention, operating as a parliamentary candidate in the December and head of the Bank.
He recalled that the phrase ‘fit and proper person’ was coined to ensure that people with undivided attention and competence, are appointed to run the banking sector.
“The fit and proper person is assessed from time to time. An attempt to strengthen the corporate governance of banks in Ghana, resulted in the coinage of the term fit and proper person test to occupy key management positions such as CEO, board membership, and internal auditor positions.
The essence is to ensure that the right people who will devote their time and expertise continuously to protect and create value for the bank are appointed. At any time after receiving the green light from the Bank of Ghana to become CEO of any bank, if a person can no longer devote his time to the bank, that person does not fit in the role anymore”, he said.
His concern comes days after the New Patriotic Party (NPP) parliamentary candidate for the Manso Nkwanta, was announced as the new MD.
Prof Gatsi said political campaign requires adequate time especially at this time and so it will be very difficult for Mr Fokuo to combine campaign and office works.
“Political campaigning is a full-time commitment to a constituency and political party campaign strategy and continuous engagement until voting day. A CEO cannot be fully committed to a bank at the same to a political campaign. NIB is not part of the civil service of Ghana. In fact, no private bank will allow its CEO to stand as a parliamentary candidate on the ticket of any political party.
It is rather strange that the board recommended a parliamentary candidate as a CEO.
The Bank of Ghana should quickly take steps to exit any CEO and top management team of universal banks who becomes interested in a political position, especially a parliamentary candidate. Compromising will create a huge political risk for the bank”, he said.
He said the appointment cannot go unchecked when in the past others were forced to leave their post because they expressed interest in partisan politics.
He cited a case in 2019 where one Thomas Hughes Amissah, was pressured to resign from the same bank because he was vying to contest in the National Democratic Congress (NDC) parliamentary primaries at the Cape Coast South constituency.
“In fact, Mr. Amissah finally wrote a resignation letter with a month’s notice but NIB management which may include those interested in a parliamentary position today refused and asked for immediate resignation to avoid being dismissed. What is the board, management, and Bank of Ghana telling us? The bank in 2019 accused Mr. Amissah of engaging in partisan politics by participating in the primary conducted by the NDC”, he disclosed in a post shared on Facebook.
Prof Baffour Agyemang-Duah described the appointment as unfortunate arguing it raises serious concerns about the politicization of State Owned Enterprises.
“It is strange that someone who is actively pursuing a political position at the same time been appointed to head a financial institution. The position of the MD for NIB is a professional position. I know the candidate in question is also a professional banker but dabbling in politics at that level politicizes the all-appointment process.”
“I don’t think that is the right thing to do at this time. I think the President should have been a bit careful making the decision on the gentleman.” He added
The Minority in Parliament has asked that the decision be rescinded.
According to them, the appointment raises serious concerns about the politicisation of State-Owned Enterprises and undermines public trust in the government’s ability to manage national resources effectively.
They argued that the appointment reflects a lack of integrity and suggests that the government and the Bank of Ghana have no desire to resuscitate the ailing bank.
“The National Investment Bank is distressed and on life support. It is in dire need of a management team with the requisite skills and competencies to engineer and manage a recovery programme of a medium-term nature,” Dr. Kwabena Donkor, the Ranking Member of the Committee on Employment, Social Welfare and State-Owned Enterprises said in a statement.
The Pru East added that “To appoint a Parliamentary Candidate six months into an election beggar’s belief.”
He, therefore, called on the President Akufo Addo-Bawumia government to reconsider this appointment and prioritise the integrity and business sustainability of the NIB.
“We urge the President Akufo Addo/Dr Bawumia government to reconsider this appointment and prioritise the integrity and business sustainability of the National Investment Bank. The appointment of a Parliamentary Candidate to a key banking position like this undermines public trust and confidence in the government’s ability to manage our national resources effectively.”
“We demand the reversal of this appointment and a more transparent and impartial selection process that prioritises merit, competence and meritocracy over political affiliation.”