The Board of Directors of Agricultural Development Bank PLC (ADB) has issued a statement addressing recent media reports and social media publications that have raised concerns over the bank’s approval of certain contracts, particularly in the lead-up to the government transition set for January 7, 2025.
The statement comes in response to claims made by North Tongu MP, Samuel Okudzeto Ablakwa, who on December 26, 2024, took to Facebook to accuse officials in the outgoing Akufo-Addo/Bawumia administration of “reckless and unpatriotic” behaviour.
Ablakwa specifically pointed to ADB, where he alleged a surge in last-minute contract approvals, including a contentious electronic servicing agreement valued at $750,000 (approximately GHS12 million), awarded to Virtual Security Africa.
The contract, according to Ablakwa, had been approved just days before the government’s transition, even though negotiations with the vendor were still incomplete and the agreement remained in draft form.
In its response, the ADB Board sought to clarify its position, emphasizing the importance of regulation and governance in its operations.
“The Board of Directors would like to clarify that not only is ADB a public company limited by shares, it is also a bank and listed on the Ghana Stock Exchange,” the statement read.
“Thus, it is regulated by both the Bank of Ghana and the Securities and Exchange Commission. These oversight and regulation ensure that the Board of Directors functions within the confines of regulation.”
The ADB also stressed that it continues to operate in a manner consistent with good corporate governance and has not abandoned its responsibilities despite the ongoing political transition.
“To ensure effective and efficient corporate governance and guarantee its continuous safe operation, the Board does not freeze or abdicate its responsibility after general elections,” the statement noted.
Responding to the specific concern regarding the contract approval, the Board emphasized that all decisions were made within its authority and were intended to ensure the continued provision of critical services to the bank.
“The ADB Board, in the exercise of its duties, has granted approval for the renewal of some existing but expiring contracts to ensure continuous provision of critical services to the bank,” the statement clarified.
“Every contract renewal approved by the Board was within its authority and in furtherance of the objectives of the bank.”
While the ADB Board has assured the public that it remains committed to safeguarding the interests of its stakeholders, the controversy surrounding the $750,000 contract continues to generate debate.
Ablakwa’s claims of rushed approvals and the potential for improper transactions in the final days of the current administration have raised questions about the timing and transparency of some last-minute deals.
In conclusion, the Board of Directors reiterated its commitment to ensuring that ADB operates effectively, with a focus on maintaining transparency and upholding its responsibilities to customers, shareholders, and the public at large.
“The Board would like to assure its esteemed customers, shareholders, and the general public that it remains focused and it is effectively and professionally discharging its duties to safeguard the interest of all its stakeholders,” the statement concluded.
