Dear Sir

I hope you are in the know of recent happenings in your bank. In banking there are 4 key pillars of performance that are paramount to the business sustainability and these are Asset quality; Liquidity; Solvency (Capital adequacy); and Earnings.  Please referencing from Agricultural Development Bank (adb) Financials for 2013 and 2014 coupled with Banking survey done by Business and Financial Times -18^th May 2015/PWC survey 2013 and Graphic Business – May 26th – June 1, 2015 No. 343; adb is very weak in all 4 pillars and unfortunately the situation has been deteriorating since 2010.

The staff are not against the IPO, not at all. They are in full support, but there are question marks with the handlers. Basically their competence, adherence to good corporate governance practices and capacity to run things well are in question. Inferring from Bill Clinton’s 1992 election mantra, ‘‘The Economy, Stupid” For adb ‘’The Performance and governance practices, HIGHLY IMPRUDENT’’.  The Leadership team of the bank over the past 6 years has proven beyond reasonable doubt that ‘’they are not fit for purpose’’. How do you hand more money to someone who couldn’t manage the little wisely? There is no tribal warfare, tribalism nor personality clashes involved in the staff agitation, it is purely mistrust due to the present non-performance coma of the bank, and the corrupt practices.

adb Management is all about PR and media blitz but the substance, which is the actual performance and financial health of the bank, is of no relevance to them. ‘’Once again why is the performance not playing ball with management?’’.

Over the last year the Average Capital adequacy of the industry is 17% and adb is lingering around 10% the barest minimum. The less said about our liquidity and asset quality the better. Please examine the financials and B&FT banking survey for 18^th May 2015 and Graphic Business – May 26th – June 1, 2015 No. 343 and compare with NIB, and 2009 TIER One competitors which were GCB, SCB, BBG, and Ecobank. Mr President, do not be confused by the lack of capital injection arguments ooo as the causes of adb misfortunes, NIB has had none and adb had not received any for a very long time but Percival Kuranchie performed in adb. NIB is doing well compared to adb.

adb’s management and Board are finding it hard keeping its integrity intact with their inconsistent communication and lack of transparency on self-dealings, financing arrangement for the AFC building, Sale of HQ building on Independence Avenue, advance payments to Agridev, Rental and furniture payments, questionable expenses, and many more issues. This is weird but it sounds like their only cover is that the Government of Ghana appointed them. But boss, do not mind the rumour mongers peddling information that your wife has a stake in the AFC building. I mean the new rented head office of adb?

Mr President is it true that you have a solid stake in the adb IPO. The SEC in their approval as sighted in various media note that adb is going to raise GHS 424 million and all things been equal BOG will get around GHS 216 million leaving a whooping GHS 208 for adb and Government. I hear none of the money is going to the banks paid up capital to give it room to overcome Capital adequacy challenges but all will be for Capital expenditure such as Expansion and Refurbishment of Branch Network GHS60M; Rebranding; Staff Rationalisation & Other Costs GHS48M; Business Applications GHS34M; IT Upgrades and Other IT solutions GHS26M; Expansion of ATM network GHS16M; New Head Office GHS8M; Offer Expenses GHS16M.  Hmmm Campaign money for 2016 don’t come oga president. But please Mr President as Bob Marley said in Buffalo Soldier ‘’ don’t forget your past’’ hmmmm remember RLG Gate –akonfem, tree planting, dress makers training and the subsequent embarrassment? Unless good conscience is not alive, please Mr President don’t disappoint me.  Remember Papa Duncan sermons to you after the Supreme Court verdict? He said and I paraphrase ‘’Mr President sometimes be bold to stand up for what is right for the country and exonerate yourself from dodgy deals’’.  Posterity might be very harsh on you if you allow adb IPO deal to go through in its current form.

With all the shenanigans in adb I remember a famous Akan quotation translated to English ‘’ If your mother is dead and you claim she is asleep then it’s your cup of coffee. The longer it lasts the stinkier it becomes. adb in its present state is like the presidential jet in the 90’s a ‘’flying coffin’’. The numbers for 2015 and 2016 will show if this imprudent management and Board are not changed. Their incessant excuses to staff and yourself are enough oooo tooom, yabree nii daaa excuses nooo.

What can they do differently going forward, which they have not done in the past 6 years?  They have nothing to offer, frankly they are not fit for purpose.

As for BOG, the least said about them the better. Scrutinizing the numbers of all the 26 banks, I foresee a banking and financial crisis sooner than later. Frankly Standard Chartered Bank, SG and Stanbic and to some extent Ecobank are doing true reporting of their actual state. Please read the speech of SCB Chief Executive to the Stock Exchange on facts behind the figures for 2015 and there are numerous insights for your learning. Questions bothering my mind are

1. Are banks doing the right classification of their assets?
2. Do banks have assets on their books classified as current yet are actually non-performing?
3. Are banks earning interest from Non-performing assets that are classified as Performing in their books?
4. Are banks reporting the right credit loss expenses/impairment charges figures?
5. Are banks correctly computing their Capital adequacy ratio’s

Hmmm asem beeba daabi. Please I entreat the Parliamentary Committee on Finance and Banking and the Presidency to take a cue from the European Monetary Union and US on measures to avert a financial crisis.

Mr President would you kindly consider Forming an Independent autonomous body such as a FINANCIAL SERVICE AND CONDUCT AUTHORITY to regulate financial services such as banks ,insurance firms, non-bank finance business, stock brokerages etc? The present banking supervision division and financial services regulatory units are too haphazard in my view.

I end this letter with a chorus from Miss American Pie a popular song in your youth

Bye Bye Miss American Pie

Drove my Chevy to the Levy and the Levy was gone

Saw Old men sitting by the rye drinking whisky and singing

This is the day that I die, this is the day date I diieee

Let not this happen to ADB staff and ADB please Oman panin.

Déjà vu BHC and Co-operative banks? Remember number of staff who lost their lives in sorrow in the first 5 years of the bank’s collapse? Children whose educations were truncated because of parents losing their jobs? Yet the Board and management members went on to open loan firms etc and enjoyed lives with their families?

Thank you Sir. Lest I forget the BNI, is it their duty bugging lines of ordinary citizens, people’s wives and husbands, girlfriends and adb staff? Is the BNI responsible for trailing adb’s Executive Director as claimed in the media? And for what? Mr. President some BNI staff activities are shameful and they are fast losing credibility. Please check mate them ASAP.