ADB sells head office for $10m; rents new one for ?1m monthly

The decision of ADB to sell its Head Office for $10million only to pay a monthly rent of GHC1million for a new office has caused a stir and dissatisfaction amongst the bank’s staff.

The bank is now headquartered at the Accra Financial Centre after moving from its ADB house off the Independence Avenue in Accra.

It is paying the one million cedis monthly rent to the AFC, a building it has 10% stake in.

The monthly rent excludes utilities consumed.

For many in the pro-agric bank, the decision by management demonstrates poor judgment because they do not believe it makes business sense.

Sold ADB House

Management of the bank, however, insist the decision was a prudent one because about 40% percent of the head office staff were housed in other buildings in the city.

This means utilities were paid separately and other rent charges were borne by the bank.

The managers believe bringing all the staff under one roof is cost-efficient even if they were unable to state exactly how much savings is being made. They said when the valuation of the ADB Headquarters was done, the property was valued at GHc17 million but a competitive bidding earned the bank $10million. They, however, say the deal is yet to be concluded.

Management sources also told Joy News the claim that the ADB land used for the Accra Financial Centre was worth $10 million was untrue. They say the land was valued at about $2.5 million.

Nonetheless, the sale of the old office has served as a rallying point for the staff to question the managerial acumen of the Managing Director of the bank, Mr. Stephen Kpordzih, and the Board of Directors.

Aggrieved staff of ADB

The workers say there is 600million cedis in unrecovered loans sitting on the books of the bank, a situation they fear will erode the bank’s ability to lend.

ADB’s stature in banking circles is summed up in its 20th position out of 28^th in Ghana. The bank used to be fifth.

The bank’s staff are convinced management has been negligent and has demanded the immediate dissolution of the Board.

They are also calling for the removal of the Managing Director, Stephen Kpordzih, while a comprehensive forensic audit is conducted into the operations of the bank.

They also want a reversal of the sale of the ADB house and a suspension of the initial public offering on the stock market.

By: Keminni Amanor