Alhaji Hayatudeen Awudu Ibrahim, the President of Rural and Community Banks (RCBs) Chief Executive Officers (CEOs) Group, has called on the Bank of Ghana (BoG) to reverse its 2021 corporate governance directive which limits RCBs CEOs to a maximum of three four-year terms.
According to him, the directive contravened Article 107 (b) of the 1992 Constitution, and that nearly all the seasoned CEOs who had served their banks and the industry with distinction would be compelled to step down in the next six months due to the implementation of the directive.
Speaking in an interview, Alhaji Ibrahim stated that while, they recognised the directive’s essential role in safeguarding the financial system and enabling innovation, they continued to contend that the transitional arrangement on tenure of office of CEOs in the directive was against the law.
He said: “Over the past three and half years, we have pursued constructive dialogue and engagement with the BoG, with the hope that they would revisit and amend paragraph 78 of the directive.
“However, a letter from the Head of Other Financial Institutions Supervision Department, in May this year on the matter suggested the said paragraph 78, which affects some of our CEOs’ tenure and potentially forces them into compulsory retirement, would not be revisited or revised.”
Alhaji Ibrahim expressed concern that the adverse consequences the rural banking industry would face would far outweigh any perceived benefits if the directive were not revised.
He thus implored the BoG to reconsider its stand on the matter and adopt a more prudent and inclusive approach in line with the laws of the country to help foster the growth and prosperity of the rural banking industry.
Meanwhile, he said: “To ensure clarity and fairness, we will explore all lawful avenues to seek redress and guidance as necessary, including legal recourse if required, to protect our members’ rights in accordance with the laws of Ghana.”
This, Alhaji Ibrahim noted, was crucial to preserving the institutional capacity, continuity, and strategic leadership that the RCBs needed to remain competitive and innovative in the financial ecosystem.
From Emmanuel Gamson, Takoradi
GNA
