Databank pulls out of Agyapa deal; says politicians tarnishing bank's image

Kojo Addae-Mensah is the Group CEO of Databank
The Board of Directors of the Databank has announced the bank’s withdrawal from the Agyapa Minerals Royalties Transaction as transactional advisors.

The directors said some politicians attempted to tarnish the Bank’s image in the lead-up to the elections last year.

The letter signed by Kojo Addae-Mensah, Group CEO of Databank, explained: “The Board of Directors of Databank has observed with deep concern persistent attempts by some political actors, during the political season leading up to the general elections of December 2020, to tarnish our hard-won reputation painstakingly built over the last 30 years, by unfairly exploiting our participation and involvement in the transaction as one of the transaction advisors.

“We believe this is principally due to the Minister of Finance’s association with Databank as its co-founder.”

It added: “The Board of Databank, whilst being convinced about the immeasurable benefits to be reaped by the Republic of Ghana from the transaction, is of the view that the tumult generated by the involvement of Databank in the transaction, coupled with insinuations and aspersions cast on the reputation of the company in the lead up to the election, not only grossly compromises the ability to execute such a market-sensitive and novel transaction, but also has a real tendency to severely damage the invaluable business reputation of Databank.

“It is this deep market knowledge and extensive experience that makes us understand that the potential damage from the fall out of all the negative press regarding Databank’s involvement in the Agyapa transaction, especially the proposed IPO, despite our sterling track record over the years, is incalculable both in the domestic and international financial markets.

READ ALSO:  Minority's petition to US SEC on $2.25bn bond needless - Economist suggests

“The reasons expressed above have compelled us to take the hard-decision to formally withdraw our services as your partner and co-transaction advisor on this mandate.”

By Laud Nartey||Ghana