Don’t support ‘distressed’ banks with our pensions – Angel Carbonu

Don’t support ‘distressed’ banks with our pensions – Angel Carbonu

The President of the National Association of Graduate Teachers (NAGRAT), wants the government to abort plans of using GHc2 billion from private pension funds to support distressed banks.

Angel Carbonu says the government has no right to take such an arbitrary decision.

“Why should there even be a directive directing pension money to be sent to GAT when the government does not have that authority to do that in the first place. This is because the money does not belong to government. This is a non-starter, and we are calling on government to withdraw this approach,” he said on Citi TV/ Citi FM’s news analysis programme, The Big Issue on Saturday.

The Governor of the Bank of Ghana, Dr. Ernest Addison, announced on January 4, 2019, that government is to form Ghana Amalgamated Trust made up of some private pension funds in the country to support to some five banks who were solvent, but were unable to raise GHc400 million for the recapitalization drive.

The five banks include ADB, NIB, merged Omni/Bank Sahel Sahara, Universal Merchant bank, and Prudential bank.

Details of the Ghana Amalgamated Trust are currently scanty as the government is yet to give adequate information on the way forward.

The Finance Ministry in an earlier statement warned the beneficiary banks not to consider the support as a bailout because it is “to support solvent and strong indigenous banks to meet the new minimum capital requirement, and is not a bailout programme.”

Carbonu argued that government should have pitched the idea to the private pension managers instead of imposing the deal on them.

“Government does not determine where monies are supposed to be sent to. The schemes are regulated by the NPRA. So if government forms an organization called Ghana Amalgamated Trust as a special purpose vehicle of getting resources to distressed banks and government feels that this business is a viable business proposal, all it has to do is to make a presentation to any of these schemes.”

“When the schemes study the presentation and realize that it is a viable platform for investment, the schemes will decide whether or not to send money there. Why should there even be a directive directing pension money to be sent to GAT when the government does not have that authority to do that in the first place. This is because the money does not belong to the government.”

He said the government should immediately make known who the managers of the GAT would be.

“In any case, when was GAT established, what is their track record, who are the people managing GAT, what is the percentage are you giving the workers when they send their monies there? Now the banks that we are talking about, how strong are they, how economically viable are those institutions? This is a non-starter and we are calling on the government to withdraw this approach,” Carbonu added.
Meanwhile, the Trades Union Congress will meet on Monday to take a decision on the government’s decision.

January 12, 2019

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NATIONAL ASSOCIATION OF GRADUATE TEACHERS (NAGRAT) - GHANA National Secretariat P. O. Box NM 329 Accra –Ghana 4th July, 2014



We write to complain about the way and manner government and the Ghana Education Service management have handled grievances of the staff of the service. From 2010 to date, the unions of the Ghana Education Service have raised concerns on grievances that have been left unresolved by the Ministry of Education, the Ghana Education Service, the Fair Wages and Salaries Commission and for that matter government. These grievances have been the major reasons behind various strikes, demonstration; and petitions, and yet their redress remains far from sight. Sir, you would recall that in May 2014 the grievances listed below caused the National Association of Graduate Teachers to serve notice of its intention of industrial action on the National Labour Commission and the subsequent declaration of industrial action. They are:
  1. Second Tier Pension Scheme
  2. Payment of Outstanding Incremental Credits for 2011 and 2012
  3. Non-payment of Transfer Grants and T&T Allowances to Teachers Transferred from 2010 to date
  4. Three (3) Months Pay Policy on Newly Recruited Staff, Promotions and Re-engagement
  5. Revision of WAEC Invigilation Allowances.
Consequent upon that industrial action, a meeting was convened between the government team and the Teacher Unions on 15th May, 2014 to resolve the issues relating to teachers of the Ghana Education Service. At the meeting various agreements were reached on the issues and a Communiqué signed. (Vide copy for your study and use). We wish to bring to your notice that government and the GES management have failed to adhere to the tenets of the Communiqué they signed. A case in point is that on the payments of not more than three (3) months’ salary arrears. The agreement is that District Directors of education would submit completed templates for payment of the remaining arrears to Regional Directors latest by 16th May, 2014 and that payment are expected by the end of June 2014. Sir, we are now in July and most of the templates are still at the District Directorates. Payments for those that have been submitted to headquarters have not been made. On transfer grants, the Communiqué mandated District Directors to collate data on qualified beneficiaries by end of May 2014. Stakeholders were to be invited upon receipt of the data for a verification and validation exercise for payments to be effected. We have moved through June to July, 2014 yet the Stakeholders’ meeting has not been convened. Needless to say, the verifications and validation exercise has not taken place and a date for payment not known. Closely linked to the payment of transfer grant is the staff deployment and rationalization exercise. Government and the GES management agreed to suspend the exercise and source funding for the payment of transfer grants and T&T of teachers transferred since 2010. As of now the outstanding grants and allowance have not been paid yet teachers are being transferred under the exercise Collection of data on teachers who were transferred has been done for the group of 2014 to the neglect of all those transferred from 2010 to 2013. On the strength of that Communiqué and the genuine desire to create the congenial climate for further negotiations, NAGRAT called off its strike on 21st May, 2014. On the same day, the National Labour Commission (NLC) invited the parties to a meeting aimed at resolving the grievances. It is pertinent to point out that while NAGRAT and the FWSC attended the meeting other parties namely the Ministry of Education, the Ghana Education Service, the Ministry of Finance, and the Ministry of Employment and Labour Relations failed to honour the invitation. The NLC scheduled another meeting for 18th June, 2014. The National Labour Commission notwithstanding issued some directive to be responded to by 11th June, 2014 prior to the meeting of 18th June, 2014. (Please find copy attached) Sir, it is interesting to note that the Ministry of Education and the Ghana Education Service which had invited NAGRAT to a meeting on that day postponed the meeting indefinitely when NAGRAT called off the strike. That meeting has not been reconvened to date. This is a clear indication of the lack of commitment of government and the GES management to resolving the grievances of the Ghana Education Service Staff. When National Officers of NAGRAT reported at the premises of the National Labour Commission on 18th June, 2014, they were told that the meeting had been postponed indefinitely. It is almost three (3) weeks now and the National Labour Commission has left the issues hanging without any communication with the leadership of the Association. Sir, teachers are getting increasingly convinced that their grievances are systematically trivialized. We want to state emphatically that should any unpleasant outcome occur, teachers will take no share of blame. Their patience has been stretched to the limit and the disquiet is becoming alarming.   Yours faithfully,     Stanislaus P. Nabome General Secretary Cc:
  1. The Honourable Minister,
Ministry of Education Accra
  1. The Honourable Minister
Ministry of Employment and Labour Relations Accra
  1. The Honourable Minster,
Ministry of Finance Accra
  1. The Chief Executive
Fair Wages and Salaries Commission Accra
  1. The Director General
Ghana Education Service Accra
  1. The General Secretary
Ghana National Association of Teachers Accra
  1. The General Secretary
Teacher and Educational Workers Union Accra
  1. The President
Coalition of Concerned Teachers Accra
  1. All Regional Chairmen,
NAGRAT Regional Secretariat