To enhance efficiency and minimize scandals involving board members of financial institutions, Banking Consultant and Analyst, Dr. Richmond Atuahene is pushing for what he describes as a “fit-and-proper test” on all potential board members of banks before their nomination or appointment.
Dr. Atuahene, who has vast experience in banking and is also a keen follower of happenings in the sector believes some board members appointed by the government lack the expertise, capacity, and character required to sit on boards of banks.
He is of the opinion that many of these persons appointed by the government as board members of banks with state interest are mostly politically exposed persons, as some also lack the requisite expertise and profile for such crucial roles.
To curb the scandals and the inefficiencies associated with the operations of board members, Dr. Atuahene is calling on the government to prioritise a fit-and-proper test for all potential board members before their appointment.
In an interview with The High Street Journal, the banking consultant suggested that before any appointment to a board is made, the government must submit the names of the potential persons to the Bank of Ghana for thorough scrutiny.
He says the regulator will perform checks on personal backgrounds, criminal records, expertise, qualifications, tax records, and character among others. With this due diligence, the Bank of Ghana then decide whether the person qualifies.
As is done in other jurisdictions, Dr. Atuahene says, “Before you are appointed, you should pass the fit-and-proper test. You are not appointed before, you are supposed to go through that process before you are nominated or appointed.”
“Before the appointment, they bring the name to the Bank of Ghana to do the fit and proper test or what we call the due diligence on that person. That should be the processes and procedures. You have the person’s name, you take it to the Bank of Ghana, and then they will have to do a whole lot of due diligence about the background, where the person lived, payment of taxes,” he added.
This recommendation follows the recent development at the Agricultural Development Bank (ADB) and CAL Bank leading to the forced resignation of the board chair of ADB and the mass dismissal of top executives at CAL Bank.
