Agricultural Development Bank PLC (ADB) has responded to allegations of a questionable $750,000 contract approval, describing the claims as baseless.
In a statement issued by the Board of Directors, ADB said it operates under strict regulatory oversight from the Bank of Ghana and the Securities and Exchange Commission, implying questionable contracts cannot be approved without scrutiny.
The controversy surrounds a contract renewal with Virtual Security Africa, which Member of Parliament for North Tongu and chairman of President-elect John Mahama’s Operation Recover All Loot (ORAL) Samuel Okudzeto Ablakwa claims was approved under questionable circumstances.
Ablakwa alleged that the contract was pushed through despite not going through vital processes such as auditing and negotiations.
However, the ADB Board emphasized that all contract renewals were within its authority and necessary to ensure uninterrupted services.
“Every contract renewal approved by the Board was within its authority and in furtherance of the objectives of the bank,” the statement read.
The Board assured stakeholders of its adherence to corporate governance standards, stating that it “remains focused and is effectively and professionally discharging its duties to safeguard the interests of all its stakeholders”.
Okudzeto Ablakwa criticized the outgoing government for ignoring warnings from the President-elect’s Transition Team to halt such last-minute transactions.
Below is ADB’s full press release
Re: Ablakwa blows whistle on ADB’s $750K ‘Midnight Contract’ amid transition tensions
The attention of the Board of Directors of Agricultural Development Bank PLC (ADB) has been drawn to media publications with captions such as the above. Similar content has also been circulated widely across various social media platforms.
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. Thus, it is regulated by both the Bank of Ghana and the Securities and Exchange Commission. These oversight and regulations ensure that the Board of Directors functions within the confines of regulation.
As a company, ADB acts through its duly mandated corporate organs, including the Board of Directors.
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 ADB Board, in the exercise of its duties, has approved the renewal of some existing but expiring contracts to ensure the continuous provision of critical services to the bank. Every contract renewal approved by the Board was within its authority and in furtherance of the objectives of the bank.
The Board would like to assure its esteemed customers, shareholders, and the general public that it remains focused and is effectively and professionally discharging its duties to safeguard the interests of all its stakeholders.
Signed
Ag. Chairman
Board of Directors
Agricultural Development Bank PLC.
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