Merchant Bank Director Resigns

Marian Barnor, Board Chairman of Merchant Bank Ghana Limited, has resigned her position from the bank.

In her resignation letter addressed to the Chairman of the Board of Trustees, Social Security and National Insurance Trust (SSNIT), the owners of the bank, she said �My resignation is prompted by recent events which in my view erode the confidence in the role and work of the Board of Directors�.

�On the grounds of principle, therefore, I consider that increasingly my role has become redundant and I do not want to compromise the firm principles of corporate and institutional governance which have guided my service to country, the Bank and the Board as its Chair�, Mrs Barnor said.

She expressed gratitude to all her colleague directors and management of the bank for their support, stating that �Together we have sought to reposition the bank and ensure its survival�.

Merchant Bank has been gasping for breath for some time now as the former vibrant bank struggles to stay afloat. At the time banks are making fabulous profits, Merchant bank is on its knees begging for a bail out from the Bank of Ghana.

In August, last year, FirstRand made a bid of $91million for a 75 per cent stake in the Ghanaian bank which the board chairperson championed.

However, the bid was later withdrawn because the two parties-First Rand and Merchant Bank failed to reach an agreement on the commercial principles for the acquisition.

SSNIT owns 68 per cent of Merchant Bank, which has 22 branches currently.

The bank lost about GH�71.8million in loans administered to some three companies which mainly contributed to its flop. On the whole, some 20 companies are said to be responsible for 80 per cent of Merchant Bank�s total debt.

Mrs Barnor was appointed as chairman of the board of Directors in July, 2009.

Source: Cephas Larbi/D-Guide