CALBank has rejected reports that some of its Executive Directors and Board Members have been sacked due to impairment issues facing the financial institution.

This follows media reports that some of the bank’s Executive Directors and Board Members have been sacked.

“The changes are rather due to ongoing restructuring and transformation of the institution” the bank said in a statement.

Board changes

The bank explained that “no director has been dismissed”, adding that the changes stem from the conclusion of the tenure of office of the directors under the bank’s statutory and regulatory governance cycle.

The statement clarified that three independent Non- Executive Directors of the bank were due to retire at the 2024 annual general meeting (AGM) held on September 4, 2024.

The three were Mr. Ben Barth, Dr. Cynthia Forson and Mr. Richard Arkutu.

Mr. Barth did not seek re-nomination when his tenure expired, while the terms of Dr. Forson and Mr. Arkutu ended at the AGM.

“All three retired directors provided exceptional service to the bank during their tenure” the statement acknowledged.   

The bank explained that due to a pending injunction application filed by two minority shareholders, that sought to stop the consideration of some resolutions at the 2024 AGM, the process of reappointing directors has been delayed.

Current Board of Directors

Joe Mensah (Board Chairman)
Kofi Osafo-Maafo

Kweku B. Korsah

Solomon Asamoah

Nana Otuo Acheampong

Carl Selasi Asem (Managing Director)

According to CALBank, it is preparing for an Extraordinary General Meeting (EGM), where new directors will be appointed to restore the full complement of the Board, in line with governance standards and regulation.

Addressing Legacy Issues and Driving Transformation

The bank revealed that a significant portion of the challenges facing the company is legacy-related.

“The current Board, through its duty of candour, has taken proactive steps to clean up the balance sheet, strengthen risk management, and set the bank on a path to future success”.

“They have also taken steps to enhance the bank’s Credit and Market Risk frameworks, which has resulted in reduced exposure to bad loans but have also ensured that none of the loans booked during this Board’s tenure have gone bad – a testament to the robust oversight now in place. These are just few of several actions and measures that they have taken to turn around the institution”, the statement assured.

Financial Performance and Growth Trajectory

The bank added that some of the structures introduced have helped the bank make profit for the first-half of the year, and the results are expected to show sustained growth through the year-end.

The bank has also grown strong risk management structures and strategic decision-making have resulted in positive financial performance.

“This marks the beginning of a trajectory of growth, underpinned by better governance and strategic leadership”, it added.