Don't Miss

IMF, Ecobank differ on bank’s corporate governance

By BusinessNews Staff on February 10, 2015

The International Monetary Fund (IMF) has said that rushed growth and poor governance at pan-African lender, Ecobank, pose serious concerns.

According to Reuters, the multilateral institution stated this in a report about banks operating across African borders.

But a spokesman of the bank said much of what the report said about Ecobank appeared to refer to events of last year, when the bank fired its chief executive, Thierry Tanoh after months of turmoil over corporate governance.

The Fund said Ecobank Nigeria’s “relatively weak capital position remains a concern” adding that rapid loan growth at the bank, which is a subsidiary of Ecobank Transnational Incorporated, raises suspicion of reckless lending.
“Ecobank has put in place robust structures to ensure its corporate governance,” the bank’s spokesman, Richard Uku said.

Also, Ecobank in reaction to the IMF report, reaffirmed its financial strength and strong governance as a systemically important banking group in Africa

“Ecobank Transnational Incorporated (ETI), parent company of the Ecobank Group, wishes to correct misperceptions conveyed by an International Monetary Fund (IMF) report released on 4 February 2015. The report suggests that ETI’s rapid expansion, lack of regulation and poor governance pose a wider threat to financial stability in Africa.

“The report, which contains some inaccuracies, is roughly 18 months out of date as regards some of its references to the Ecobank Group. The internal governance issues that it refers to at Ecobank date back to a period of several months between mid-2013 and early 2014. The Ecobank Group dealt conclusively with those internal governance issues at the time. The matter culminated in the dismissal of its then Group CEO, Mr. Thierry Tanoh, who was replaced by Mr Albert Essien in March 2014,” the bank explained in a statement made available to THISDAY yesterday.

Continuing, it pointed out that it has since reconstituted a new Ecobank Group board and senior management team, which it stressed has been able to restore stability to the bank and regain the confidence of stakeholders, regulators, shareholders, customers and staff members.

Ecobank is one of the largest financial institutions in sub-Saharan Africa and has a presence in 36 countries on the continent. Its assets in 2013 stood at $22.5 billion, according to the company’s website.

The bank is appealing a court decision last month in Ivory Coast to award Tanoh $15 million for defamation over a letter written prior to his dismissal. It is also appealing a Togolese court’s award of $11.6 million to Tanoh for unfair dismissal.

[ThisDay]

headline