TUC calls for halt to ADB shares sale

Accra, Sept. 20, GNA - The Ghana Trades Union Congress (TUC) on Thursday asked government to suspend the proposed sale of the Bank of Ghana's 48 per cent shares in the Agricultural Development Bank (ADB) and called for an open debate on the country's agriculture policy and the future of ADB in the short, medium and long-term.

In a statement signed by Mr Kwasi Adu-Amankwah, Secretary-General of the TUC, the labour group said no compelling reasons had been advanced by government to justify the sale of Bank of Ghana's shares in ADB. The statement was in a direct response to the Chairman of the National Development Planning Commission, Mr J.H Mensah's earlier statement which criticised the TUC for its stand on the sale of Bank of Ghana shares to a strategic foreign investor.

In particular, Mr Mensah accused "some TUC officials" of abusing trade union principles in trying to influence government policy under the threat of industrial action over the matter and of simply protesting against change that might lead to the loss of some jobs, without waiting to see the terms of the proposed sale arrangement.

He then advised that policy issues in the management of the economy should not be settled in an atmosphere of pressure and agitation. The TUC said; "the idea of a sale to a strategic foreign investor is not the best way forward for Ghana's agricultural transformation". The TUC said the suspension of the sale would ensure that policy decisions that had long-term implications for farmers and the nation were taken after full consideration of all relevant issues and viable options and not simply because the World Bank/IMF so dictate. Mr Adu-Amankwah said the TUC found it necessary to respond to the views expressed by Mr Mensah, an economist and politician in order to clarify things for the discerning Ghanaian public and make known its position on the policy question of the sale of the shares to Standard Bank of Africa/Stanbic Bank.

"In the first place, while agreeing that questions of policy should not be resolved on the basis of emotions, with respect, we think the Hon. MP got it completely wrong when he suggested that policy issues have nothing to do with political agitation and nationalism. "In the view of Ghana TUC, issues of policy are political and may, where need be, require political agitation."

Mr Adu-Amankwa said policy issues were political and involved making choices which had differential implications for different social groups in our society.

"This is especially so when in many cases policy issues are determined in favour of vested interest groups and not necessarily to promote the public interest," the statement said, adding that "nationalism as a policy perspective that seeks to promote the national interest, is in our view a legitimate consideration in making policy choices".

The TUC said Mr Mensah's position showed that it was an unfortunate position based on unexamined assumptions and a huge dose of lack of confidence in the Ghanaian.

In the view of the TUC, "if the expectation of agricultural transformation, which is critical for our economic progress, is to be hinged on a strategic foreign investor, then God save Ghana!" The question that needed to be asked, according to the TUC, "is what has government done over the years to raise the necessary additional resources for ADB to service the millions of rural farmers and small-scale industry as a development bank?"

"It is necessary that the Honourable MP first gives Ghanaians an answer to this question before suggesting the option of a strategic investor as the only viable solution.

"Secondly, Mr Mensah's belief that it is only when Ghanaians see a foreign investor in ADB that we shall have enough confidence to patronise the purchase of newly-issued shares regrettably betrays a subservient attitude to the magic of the foreign investor and a lack of confidence in Ghanaians."

The TUC said it found this most disappointing in a politician and economist of Mr Mensah's standing and was of the view that the recent highly successful issue of new shares through the stock exchange by the Ghana Commercial Bank (GCB), provided indication that Ghanaians did not need a foreign strategic investor in order to invest in an otherwise profitable business.

"The view of the TUC is that if what is critical for ADB to meet its historic mission is adequate financial resources, then what should be done is to transform ADB into a public company by listing it on the stock exchange and raising the necessary financial resources through the issue of new shares."

It noted that neither the NDC government in the past nor the NPP government today had attempted this obvious first step, yet Mr Mensah wanted Ghanaians to believe that only by selling the Bank of Ghana's shares in ADB to a strategic foreign investor would there be a beginning of the resolution of the problems facing agricultural transformation in Ghana.

"It is too simple a solution to the problems of agriculture in Ghana, which is beset by manifold problems, not the least of which is unfair competition from imported agricultural products that enjoy subsidies at home," the statement said.

"We find such a fundamental policy issue as the transformation of agriculture as a foundation for Ghana's economic development cannot be addressed from the limited perspective of sale of ADB to a foreign investor."

What is required, it said was a comprehensive national policy for the transformation of the agricultural sector to be adopted after extensive discussion and debate on the fundamentals of the policy, the strategic objective and the timelines from year to year for various targets.

"It is only within that framework that the role of a transformed and better resourced ADB can be meaningful."

The TUC also said it found it rather amazing that Mr Mensah did not see anything wrong with government not informing Ghanaians on its policy decision on the reorganisation of ADB, but was busy negotiating with possible strategic investors.

"What ought to have been done, in conformity with Government's accountability obligations to citizens, should have been first to open up debate on the policy question of the future of ADB and its reorganisation within the larger framework of government agricultural policy.

Addressing the substantive arguments by Mr Mensah, the TUC said he was correct when he said there was the need to transform agriculture and not simply make profits as the sole purpose of establishing the ADB and that without a substantial improvement in the productivity of our farmers, "we could forget about Ghana's economic ambitions."

"Again, he correctly observes that the substantial majority of rural farmers need to be equipped with tools and technology far superior to the present cutlass and hoe technology," he said.