MPs to debate Merchant Bank-Fortiz deal
The sale of Merchant Bank Ghana Limited to Fortis Equity Fund faces yet another test, as Parliament is expected to debate the deal when it resumes for a special sitting on Monday, January 6, 2014.
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The Speaker of Parliament, Mr Edward Doe Adjaho, has been compelled by Article 112 (3) of the Constitution to recall the House to debate a motion filed by some Minority MPs who have questioned the Merchant Bank-Fortiz transaction.
Article 112 (3) states in part that “fifteen per cent of Members of Parliament may request a meeting of Parliament; and the Speaker shall, within seven days after the receipt of the request, summon Parliament.”
The Deputy Minority Leader, Mr Dominic Nitiwul, told the Daily Graphic that he had filed a motion calling on Parliament to authorise an investigation into issues surrounding the sale of Merchant Bank to Fortiz.
He explained that although he filed the motion two weeks before the House went on recess, the matter could not be scheduled for debate.
Mr Nitiwul said because of the importance of the issue it was not proper for the House to resume for the Second Session on January 28, 2014 before it would be debated; hence, the request for the special meeting.
According to him, 80 MPs from the Minority side, representing 39 per cent of the House, signed the request asking the Speaker to convene a special meeting for the debate of the motion.
“It is up to Parliament to determine the method to use for the investigation, if the motion is adopted,” Mr Nitiwul stated.
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Besides the motion filed by Mr Nitiwul, the Daily Graphic has reliably learnt that another Minority MP filed an urgent question requesting the Minister of Finance, Mr Seth Terkper, to brief the House on the same issue.
That question, although filed about three weeks before Parliament went on recess, could not be scheduled for the minister to appear before the House.
The Minority has not hidden its opposition to the sale of Merchant Bank to Fortis Ghana Limited, describing the transaction as fraudulent, a daylight robbery and a dash from the Social Security and National Insurance Trust (SSNIT) to Fortiz, with the full blessing of the Bank of Ghana (BoG).”
It accused SSNIT of opting for a deal that did not give value for money and added that the BoG did not conduct full and proper due diligence.
For the Minority, the Fortiz deal is a weak bid from an entity with no experience in banking.
Background
Although the sale of Merchant Bank to Fortis Equity Fund has been concluded, Organised Labour has called for a halt to the sale.
At a press briefing on December 13, 2013, the Trades Union Congress (TUC) said the BoG and SSNIT, the majority shareholder of the bank, should stop the transaction and conduct further due diligence.
“After a careful study of the transaction and taking into account concerns expressed by workers who are contributors to SSNIT, it will be prudent that the SSNIT Board and the BoG suspend the transaction to allow further investigations into the matter,” TUC’s Secretary-General Kofi Asamoah told the press.
The Director for Centre for Freedom and Accuracy, Mr Andrew Awuni, attempted to stop the deal but his efforts were shot down when the Accra High Court failed to grant his motion.