The National Union of Industry, Commerce and Finance Workers (UNICOF) has said the central bank should not renew the term of office of Kwadwo Aye Kusi, Managing Director of the ARB Apex Bank, who came under EOCO investigations last year regarding some procurement irregularities.

A statement from UNICOF, copied to the B&FT, has declared two days of red-alert by all staff of the bank which regulates rural banks in Ghana, across the country.

In view of this, members of the union across the country have been directed to have a red piece of material hanged around their necks or wrists.

“The red has become necessary to let stakeholders understand that the UNICOF and staff are not happy about the events at the bank.

The autocratic nature of the board chairman and his personal relationship with the MD are affecting the governance of the bank. A split board that appointed the MD will affect the progress of the bank.”

Whilst asking that the Economic and Organised Crime Office (ECOCO) makes public its findings, the union also wants an “independent investigation” into some allegations made against Mr. Kwadwo Aye Kusi, in a petition sent to the Board of Directors dated July 25, 2016, and signed by one George Essien (CFE) of the bank.

The 15-page petition, copied to Governor of the Bank of Ghana and the Finance Minister, alleges that the MD had, over the years, acted in bad faith and utter disregard for procedures, board directives and the L.I. 1825 (ARB APEX BANK LIMITED REGULATION 2006).

General Secretary of the union, John Amegashie, told the B&FT that the MD of the body that regulates rural banks in the country “has caused the bank to lose several millions of cedis,” adding that once his term has ended he must be made to go.

“Because he has the backing of the board chairman he does not respect anyone but we are going to petition the board by close of Wednesday and ask that he is mandate is not renewed,” John Amegashie said.

“We are also asking for the report conducted by the economic and organized crime office on many actions taken by the Managing Director in 2015. We have already petitioned the central bank as a union,” he stated.

The B&FT has gathered that a section of the bank’s board, also dissatisfied with the conduct of the MD, has been demanding an emergency board meeting expected to take place today, November 22, 2016.

The Board Chairman of the bank, James Otieku, who the union accuses of being in bed with the MD, is alleged to have postponed the meeting several times previously, and is scheming to have the MD retained.

UNICOF is demanding “a speedy process that will see to it that the board corrects the constitutional flaw accompanying the second term appointment.” the statement stated.

Attempts to reach the BOD Chairman for comments proved futile as there was no response from his phones.

But a management member, who pleaded anonymity, expressed shock, in an interview with the B&FT at what the person terms attempts by a section of the board to foist Mr. Kusi on the bank, especially considering the sense of bad reputation he has brought to the bank and his poor handling of events.

“What is special about Kusi that we have to keep him as MD? This is a man who has been investigated by EOCO, been disrespectful to many of the donors of the bank and thus lost project funding,” he said.

“Furthermore, even with much less charges, the former MD, Mr. Osei-Bonsu, was replaced for the smooth running of the Rural Banking system and Apex Bank itself. And this is against the background that Osei-Bonsu was one of the best MDs the Bank has ever seen,” he stated.

EOCO writes to ARB APEX BANK

In 2015 there were several media reports of the MD being investigated by the Economic and Organized Crime Office (EOCO) over some fraudulent dealings.

According to a letter from EOCO at the time, the investigation regarded some procurement fraud and other serious offenses at the bank.

The letter there were irregularities regarding the procurement of a communication link for wide area network, sale of bank vehicles to staff and the purchase of vehicles by the bank.

The letter then requested the MD to furnish the Executive Director of EOCO information on the bank’s agreement with STL Ghana Limited and a copy of the board’s approval for the procurement.

EOCO also requested the bank to provide the type of vehicle, date of original purchase, cost of vehicle, date of disposal, and name of purchase at the time of disposal and amount paid on sale of the bank’s vehicles to staff.

The EOCO further requested the MD of ARB Apex Bank to furnish it with the schedule of all vehicles purchased by the bank from 2010 to 2014, including vehicle brand, model, year of purchase, the dealer and conditions associated with the sale.

The ARB Apex Bank Limited is a “mini”-central bank for the Rural & Community Banks (RCBs), registered as a public limited liability company in January, 2000.

Among other functions, it keeps accounts, maintains primary cash reserves, monitors, inspects and supervises, as well as ensures compliance by the RCBs and lends funds to them.

Source: B&FT