Sale of TTB (Business)

3/11/11

SALE OF THE TRUST BANK (Business)

Story: Alice Aryeetey and Zoe Darling

THE Coalition for the Protection of Individuals Liberties and Constitutional Rights (COPCOR) has called on the government and the board of the Social Security and National Insurance Trust (SSNIT) to reconsider the intended sale of The Trust Bank Limited (TTB) to Ecobank Transnational Incorporated (ETI).

The Communications Officer of the COPCOR, Mr. Elorm Desewu, at a press conference in Accra today,(Thursday) said unimpeachable information gathered indicates that the intended sale of TTB  did not follow any financial logic, and Ghanaian workers/SSNIT contributors would lose over GHC 6.7 million annually if TTB is sold to ETI.

According to the COPCOR, TTB was one of the best investments that SSNIT has entered into in the financial services industry, using the contributions of the Ghanaian worker.

TTB has produced positive results compared to other SSNIT investments, and the bank has paid handsome dividends to all shareholders over the years, making the intended sale surprising.

According to Mr. Desewu, ETI has put in its Third quarter report that the sale has been completed and integration would start soon.

The shareholders of TTB are yet to meet on the issue, suggesting that a behind the scenes deal for the sale of TTB has already been made under the management of SSNIT General Director Frank Odoom, Board Chairman Kwame Peprah and the government appointed board members.

The appointed consultants on the transaction (Ecobank Capital and Pricewaterhousecoopers), said the sale would help solve the single obliger issues that force many banks to request for waivers from Bank of Ghana before participating in big ticket transactions.

They added that the Ecobank group would bring additional benefits to clients of TTB and also address concerns about external interference in the bank's business and operations.

COPCOR refute these claims, saying that a good Ghanaian asset should not be sold out to foreigners because of single obliger issues because the local banks can be combined to create a larger bank that would remain Ghanaian.

They said the problems of Ghanaian businesses and individuals are better addressed by the ability of the banks to put together packages as well as their willingness and capability to assist SMEs'.

They further advised that SSNIT should simply go by their own policy of not having more than 35% investment in any financial institution by selling excess shares to other existing shareholders.

The COPCOR said that if the government does not rescind this sale to the ETI within two weeks, demonstrative action would be taken.