Investigate attempts to sell Amalgamated Trust shares to third parties – Ayariga to BoG

BoG urged to probe alleged negative activities at GAT

GAT planning to sell-off shares of purchased banks to private individuals, Ayariga

Respond in five days or face legal action, Lawmaker to central bank

Member of Parliament for Bawku Central, Mahama Ayariga has petitioned the Bank of Ghana to investigate alleged attempts to sell off the state’s shares in recapitalized banks to suspicious third parties.

A copy of the petition available to GhanaWeb alleges that the finance minister through his agents at the Ghana Amalgamated Trust and Securities Exchange Commission are perpetuating the alleged activities.

The lawmaker in his petition therefore called for an investigation into the activities of the Board Chairman and Managing Director of GAT, Albert Essien and Eric Otoo respectively.

He also believes the two individuals “are coordinating with the Ministry of Finance and Second Deputy Governor of BoG to implement the questionable transaction.”

“The Minister of Finance through GAT is currently using GAT’s position as shareholder in these banks to questionably offload GAT’s investments to individuals in an obvious scheme to pass on value in an undeserving way to those individuals,” portions of the petition read.

“This conduct of GAT is completely unacceptable as GAT invested in these banks by purchasing its shares at a discounted rate from its existing shareholders. GAT cannot therefore be seen within only two (2) years after its equity investment in the banks to be taking steps to sell off its shares to these individuals who must be investigated” Mahama Ayariga revealed.

The Bawku Central lawmaker further alleges that GAT has submitted a prospectus to Securities and Exchange Commission (SEC) for approval to enable it sell off its shares in these banks to some private individuals whose identity calls for some investigation.

Owing to these concerns raised and more, Mahama Ayariga in the concluding part of his petition has issued the Bank of Ghana with a five-day ultimatum to halt the sale or face legal action and a parliamentary probe.

“We await your response and action within five days from receipt of this letter,” he wrote.

The Ghana Amalgamated Trust (GAT) was established by an Act of Parliament to help financially resource some local banks to enable them to meet the minimum capital requirement of commercial banks during the onset of the banking sector clean-up.

Read Mahama Ayariga's petition below: