Organised labour calls for suspension of Merchant Bank sale

Organised Labour have called on the board of Social Security and National Insurance Trust (SSNIT) and the Bank of Ghana to suspend the acquisition of Merchant Bank to allow for further investigation into the matter.

“In the interim, we believe Merchant Bank has a potential to recover from its current distressed position. SSNIT should, therefore, make the necessary arrangements to recapitalize and restructure the bank’s management in particular to ensure its viability,” Mr Kofi Asamoah, Secretary General of Trades Union Congress (Ghana) said.

Mr Asamoah, who was addressing the media after an emergency meeting of Organised Labour in Accra on Friday, said they also demand a full disclosure on the ownership of Fortiz Equity Fund and its sources of funding for that particular transaction.

He explained that their position was without prejudice to the legal suit currently before the courts and urged the Merchant Bank to make efforts to recover all its outstanding loans.

He said Organised Labour believed that if those measures were taken, workers’ uproar and the public agitation over the transaction would be minimized and calm restored.

Representatives TUC, Ghana, Ghana National Association of Teachers, National Association of Graduate Teachers, Judicial Services Staff Association of Ghana, Ghana Hospitals Pharmacists Association, and Ghana Medical Association were present at the meeting and appended their signatures to the resolution.

“We will like to assure the workers of merchant Bank that Organized Labour will ensure that their interest is protected and their rights fully respected.

“We would also like to assure the contributors of SSNIT, the majority of whom are our members, that we the leadership of Organized Labour will protect their interest at all times. Any attempt to jeopardize the viability and the sustainability of SSNIT and pension funds in general will be vehemently resisted,” he added.

Several pressure groups were against the decision and called on President John Dramani Mahama to intervene.

Fortiz had acquired 90 per cent of Merchant Bank, which hitherto had SSNIT as its majority shareholder.

SSNIT has since defended the acquisition of Merchant Bank by Fortiz Equity Capital despite concerns raised by the Executive Director of the Centre for Freedom and Accuracy, Andrew Awuni.

Mr. Awuni who is currently challenging the sale in Court, described the transaction as unfair to the ordinary Ghanaian.