ADB Responds To Ablakwa, Refutes Allegation It Acted Clandestinely In Contract Approval

• The Agricultural Development Bank (ADB) PLC's Board of Directors has refuted allegations that it is clandestinely approving contracts
• The ADB Board explained that the contracts were merely being renewed, and these actions were being taken as part of its routine business
• The allegations were raised by North Tongu MP Samuel Okudzeto Ablakwa, who alleged that there has been an increase in this behaviour

The Agricultural Development Bank (ADB) PLC’s Board of Directors has responded to the allegations against them by the Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa.

Ablakwa alleged that the bank had hurriedly approved a controversial electronic servicing agreement worth $750,000 (approximately GH₵12 million) with a private company, Virtual Security Africa, despite the contract being in draft form.

Responding to the allegation, ADB’s Board of Directors explained the renewal of a $750,000 contract in December was not an exceptional occurrence but a normal process.

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The Board said it was necessary to continuously provide critical and essential services to the bank.

The Board explained that the contract was approved within established protocols and that its directors were conscious of the need to remain professional in discharging their duties.

The ADB’s Board of Directors also noted that the Bank of Ghana and the Securities and Exchange Commission supervised the contract, ensuring the board functions within established regulations.

It further stressed that just because a general election has occurred does not mean that its function as a duly mandated corporate organ tasked with ensuring the bank's effective and efficient corporate governance should cease.

“The Board does not freeze or abdicate its responsibility after general elections,” it stated.

It affirmed that in pursuance of its duties, it has granted approval to renew some existing but expiring contracts to ensure continuous provision of critical services to the bank.

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“Every contract renewal approved by the Board was within its authority and in furtherance of the objectives of the bank,” the board reiterated.

Ablakwa is concerned about clandestine contracts

YEN.com.gh also reported that Ablakwa expressed concern about the surge in last-minute contract approvals and rushed payments by government institutions ahead of the presidential inaguration next January.

In a Facebook post on December 26, the North Tongu representative in Parliament alleged that ADB's board of directors reportedly approved a controversial electronic servicing agreement worth $750,000.

He claimed the approval had raised contention within the bank as negotiations with the company were incomplete, adding that the agreement was still in draft form and further alleging the ADB was under political pressure.

Proofread by Bruce Douglas, senior copy editor at YEN.com.gh

Source: YEN.com.gh