The Ghana Armed Forces (GAF) is set to begin the operation of a bank by the end of the year.
The was disclosed by the Chief of Defence Staff, Major General O.B Akwa, who stated that the future of military men will be well catered for when the bank is finally in operation.
The process for the establishment of a military bank started some years back, but was halted after there were misunderstandings on the bank’s management structure.
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GAF was actually granted a license by the Bank of Ghana in 2016, to begin the operation of a savings and loans company.
The latest development, though, according to Major General Akwa, is that GAF now has the all-clear to operate its own bank.
According to him, all issues surrounding the bank’s management has been solved, with the military set to be heavily represented on the bank’s board.
Speaking to some military personnel in Takoradi during a visit by Defence Minister, Dominic Nitiwul, Major General Akwa explained that having a military High Command on the board of the bank will help get the military involved in taking critical decisions.
“The interest of all ranks of the Armed Forces will be catered for in this business. As at now, we are satisfied, and at the next Armed Forces Council Meeting, we are going to send our report and when the green light is given before the end of the year, it will start operating. “We have changed the governance system to ensure that the High Command is represented adequately to ensure that your interest is also taken care of, and by so saying, we have included the Sergeant Major on the board of this bank.”
He added that GAF will own 75% of shares in the bank, with other 25% ceded to a group called zara.
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“The GAF owns the majority share, which is 75 %. We have contacted the BoG; BoG has said that by their rules and regulations, we cannot have 100 percent share, because it is part of their laws that it should be diluted for another shareholder to be part of it. “A certified group, known as the Zara Group, whose background has been also verified, is for now holding that 25 percent, but it is still possible to dilute that further, so that we get a third shareholder on stream.”