Merchant Bank MD Sacked

Another change of leadership has hit majority state-owned Merchant Bank as Peter Illiasu, the Managing Director has been forced to resign.

Sources close to the bank told City & Business Guide that Mr. Illiasu, who joined Merchant barely a year ago from Fidelity Bank, is believed to have granted loans worth several millions of Ghana Cedis to some companies and individuals without the approval of the board, which is headed by Marian Bannor.

He allegedly purchased a GH¢500,000 house with a loan he granted to himself.

Sources say the Mrs. Bannor-led bank insisted that Mr. Illiasu, who doubles as Chairman of Board of Directors of Export Development and Investment Fund (EDIF) should quit the job or face outright sacking for not following due procedures in granting the said loans.

Highly placed sources told the paper that Mr. Illaisu, who is suspected to have strong connections to the powers that be, solemnly resigned last Thursday after he was told by the board at a meeting to choose between the devil and the deep blue sea.

The sources also intimated that he is believed to be frantically pulling strings at the Castle to keep him at post in spite of the decision of directors’ decision. His case however appears to be complicated because staff consensus, according to a senior official of the bank, is calling for his outright sack.

The staff have about 12 percent ownership in the indigenous bank.

The Head of Corporate Banking, Philip Ofori Asante, who joined Merchant Bank from Stanbic this year, has already been relieved of his post because of his involvement in approving the loans.

Apparently, the dismissal letter stated, among other things, that Mr. Ofori Asante did not abide by the rules and regulations of the bank.

Merchant Bank had over the years witnessed a barrage of sackings after a similar episode hit the then managing directors.

It would be recalled that as far back as 2007, Mr. Blaise Mankwa, former Managing Director of the bank, was also sacked by the then Solomon Kwami Tetteh-led board for similar offence (granting loans without the approval of the board).

Paul Baah Sackey, who is currently managing a microfinance company, was also cited for approving credits to some individuals and corporate institutions, which the board did not approve of.

The board, the paper learnt, became worried because it did not want a situation where it would face future financial challenges as well as opportunities in the face of oil discovery.

Peter Illiasu, a former Executive-Director of Fidelity Bank Ghana assumed the position as the new Managing-Director of Merchant in September 2009 when his appointment was confirmed by the President John Evans Atta Mills. Before joining Merchant Bank, he had an extensive 15 years banking experience at Fidelity and Barclays Bank.

He took over from Dr. Kwame Osei-Wusu who was asked to resign by the current government. Mr. Ofori Asante is believed to be a close pal of Mr. Illiasu and therefore it was no surprise when he joined Merchant from Stanbic. Merchant Bank was incorporated in 1971 and commenced business in March 1972 as the first merchant bank in Ghana.

It is currently a tier two bank, according to PriceWaterHouseCoopers banking survey which was conducted in 2009.

Source: D-Guide