Dr Richmond Atuahene, Banking Consultant

A banking consultant has described the National Investment Bank (NIB), as a “sinking ship” that should have been collapsed during the banking sector clean-up.

Dr Richmond Atuahene’s comment follows a revelation by a Member of Parliament’s Finance Committee, Anthony Effah that government is in the process of recapitalising NIB under the Amalgamated Trust.

He said the decision not to collapse the bank is bad for regulatory purposes.

“NIB has not been able to publish its financial statement for over two years now, and the law requires that if after one year a bank failed to do so it should be out of business.

“So, I’m wondering why we should be giving special treatment to a state bank that has been run down by individuals”, he told Joy Business.

Dr Atuahene also added that there is a need for the bank to do a proper restructuring by employing more competent people devoid of political interference.

He also questioned government for failing to do a comprehensive check due diligence to determine whether selling off the banks shares in Nestle Ghana will make any impact before going ahead with that decision.

According to him, the bank has become unattractive for any investor, therefore, cannot look into the capital market for support.

“Already NIB is a sinking ship, who will want to invest in it,” he quizzed.

“The best thing for me is for it to have been collapsed,” he added.

The National Investment Bank is 100 per cent state-owned with a core mandate of merchant banking.