ADB defends a $750,000 contract against MP Samuel Okudzeto Ablakwa’s allegations, emphasizing regulatory compliance, transparency, and operational integrity amidst public scrutiny.
The Agricultural Development Bank (ADB) has responded to allegations by the Member of Parliament (MP) for North Tongu, Samuel Okudzeto Ablakwa, regarding approving a $750,000 electronic servicing contract.
Ablakwa criticized the deal, describing it as rushed and lacking due diligence.
But in a statement issued and signed by the Acting Chairman of the Board of Directors, ADB clarified its position. The bank emphasized that as a public entity regulated by the Bank of Ghana (BoG) and listed on the Ghana Stock Exchange (GSE), it adheres to strict regulatory frameworks to ensure corporate governance and operational integrity.
“The Board of Directors would like to clarify that not only is ADB a public company limited by shares, but it is also a bank listed on the Ghana Stock Exchange. Thus, it is regulated by both the Bank of Ghana and the Securities and Exchange Commission.”
“These oversight and regulations ensure that the Board of Directors functions within the confines of regulation. As a company, ADB acts through its duly mandated corporate organs, including the Board of Directors. To ensure effective and efficient corporate governance and guarantee its continuous safe operation, the Board does not freeze or abdicate its responsibility after general elections” the statement read.
ADB defended the contract renewal, asserting that it was necessary for maintaining essential services and aligned with the institution’s objectives.
The bank assured stakeholders that all approvals were within its authority and consistent with its professional obligations.
The controversy arose after Ablakwa alleged on social media that the agreement bypassed key processes such as auditing and negotiations.
He claimed that political pressure influenced the decision, with payments expected before the January 7, 2025, transition of government.
In his post, Ablakwa accused officials of “reckless midnight contracts,” warning that those involved would face scrutiny.
He also noted that the deal, involving Virtual Security Africa, was approved despite the main agreement being in draft form and negotiations incomplete.
ADB, however, reiterated its commitment to transparency and stakeholder interests. “The Board assures its esteemed customers, shareholders, and the general public that it remains focused on professionally discharging its duties,” the statement concluded.
Last Updated on March 14, 2025 by samboadu
