Kwahumanhene resigns as ADB board chair - Over bribery unethical conduct allegations

Maclean Kwofi Oct - 14 - 2024 , 08:05

The Kwahumanhene, Daasebre Akuamoah Agyapong II, has resigned as the Board Chairman of the Agricultural Development Bank PLC (ADB) effective Friday, October 11, 2024.

It follows a directive by the Bank of Ghana for him to do so after a director and shareholder of Prabhat Trading LTD, Collins Darkwa Aboagye, petitioned the Office of the President pleading for presidential intervention to help retrieve GH¢2.406 million owed him by the then ADB board chairman.

After receiving a copy of the petition, the Bank of Ghana (BoG) on October 10, 2024 directed Daasebre Agyapong to immediately resign and hand over in accordance with Section 103(2)(d) of the Banks and Specialised Deposit Taking Institutions Act, 2016 (Act 930).

The BoG maintained that the Kwahumanhene’s continuous holding of office as a director of the bank was becoming untenable due to the irreparable damage the events had caused the image of ADB.

The petition

The petition to the President dated September 12, 2024 which read in parts: “Sometime in 2021, I approached ADB on behalf of Prabhat Trading LTD for an export credit facility to support my business, but the processing procedures of the bank delayed unduly”.

“In the early part of 2022, I approached one of the chiefs in Kwahu named Nana Anim Dwumfour II (Ankobeahene of Kwahu Abetifi), to speak to Daasebre, the bank’s board chairman, to intervene.”

It stated that the businessman and Ankobeahene met Daasebre at a house in Christian Village, where the Omanhene pledged to facilitate the loan on certain conditions.

The conditions were that GH¢50,000 be paid to his account and a loan granted out of the total disbursement of the bank.

Under pressure from his suppliers, Mr Aboagye said he agreed to these terms and three months later, ADB approved a GH¢12 million credit facility for Prabhat Trading LTD.

“As agreed, I paid GH¢50,000 in the presence of the Ankobeahene,” it said.

Daasebre’s demands

The petition further explained that shortly after the facility was approved, Daasebre began calling Mr Aboagye frequently, demanding that he fulfil the agreement by giving him the loan.

“I went cold because I realised that I could not repay the bank if I gave him the money. He (Daasebre) finally came through the Tema Branch Manager of the bank, Kwame Peasah, who called to remind me of Daasebre’s loan and the fact that he needed it to solve an emergency and would repay in two weeks.

“I reached out to Daasebre who confirmed what the branch manager had told me. At this point, considering the intense pressure from Daasebre, I agreed to his request on the condition that the loan be paid in two weeks,” it said.

Consequently, the petition said Daasebre then sent an account number on WhatsApp through the branch manager, who forwarded same to the businessman, after which GH¢2 million was transferred to him on July 7, 2023 through the account details provided.

Failure to repay

However, the petition said two weeks went by, but Daasebre failed to pay back the loan.

“After the third month when he failed to repay the money, I went to his palace with the Ankobeahene to demand a repayment as the interest on the loan was beginning to pile up. Daasebre then told me the bank would give me a six-month moratorium for repayment and so I should not worry.

“As time went on, I intensified my efforts to retrieve the money. Eventually, Daasebre sent his driver to deliver $20,000 in cash. Since then, all attempts to reach Daasebre for the remaining balance have been unsuccessful, as he has not answered my calls or responded to my messages,” it said.

The petition appealed to the President to prevail on Daasebre Agyapong to repay the GH¢2.406 million with interest and also restrain him from using his position to intimidate and frustrate the business of Mr Aboagye.

Action taken

The Office of the President in a letter dated October 4, 2024, directed Daasebre to provide a response within seven days of receiving the directive.

The Bank of Ghana also directed the board chairperson to resign and hand over immediately due to the damage the allegations have had on the image of the bank.

In addition, last Friday, ADB PLC confirmed the resignation of Daasebre, who was appointed in September 2021 as an independent non-executive director and chairman of the bank, and thanked him for his contributions to the growth and development of the bank.

Daasebre’s response

Attempts to reach the board chairman for his side of the story proved futile. However, sources close to him said he would respond at the appropriate time.

The sources, however, told the Daily Graphic that the alleged loan transaction between Daasebre and the customer of the bank, Mr Aboagye, had nothing to do with the loan facility taken by the complainant.

They explained that while the loan from the bank was procured in 2022, the loan transaction between Daasebre and Mr Aboagye occurred the following year.

However, sources close to the cental bank indicated that it was related to the loan transaction.