Africa-Press – Ghana. Mr Edwin Akai Nettey, the Dormaa-Ahenkro Branch Manager of the Brong-Ahafo Catholic Cooperative Society for Development (BACCSOD), has lauded the government’s decision to re-capitalise the National Investment Bank (NIB).
Dr. Cassiel Ato Forson, the Minister of Finance announced the government decision when he presented the Mid-Year Budget Review to Parliament.
Government also plans to list NIB on the Ghana Stock Exchange (GSE). Speaking in an interview at Dormaa-Ahenkro in the Bono Region, Mr Nettey described the government’s intention as appropriate and “extremely necessary”, basically because the “NIB’s capital adequacy ratio remained negative in the books”.
He was reacting to the mid-year budget review, and added the negative ratio had put the bank in a very difficult situation, unable to finance its liabilities in times of crisis.
Mr Nettey said: “The government decision will engender sound, good corporate governance and pave the way for effective monitoring of the operations and activities of the financial institution by shareholders.
He called for an outright dismissal of non-performing managers of state and public enterprises “who lead such companies to underperform or become unprofitable, recording losses on their balance sheet.
Mr Nettey recommended that: “The appointment of managers of state-owned enterprises must be made on merit and not by political considerations because such persons may lack the technical know-how, expertise, competency and the requisite knowledge, experience and understanding to manage a vital state asset”.
“People who manage those state institutions should be made accountable as a measure to check non-performance and mismanagement of such public institutions, and this must start from the top”, he added, saying “if people are performing, we need to commend and praise them, if they are not, then we must take drastic measures and decisive action to drive them out,” he added.
Mr Nettey called on the government to enter into contracts with the managers and retain those who perform creditably after an evaluation and performance assessment had been carried out.
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