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Sierra Leone Business: : Rokel moves from Le25.2bn loss to Le1.5bn profit but …Shareholders accuse government of dilution of shares

John Okrafo Smart

John Okrafo Smart

At the Annual General Meeting of  Rokel Commercial Bank, the Limited Oversight Committee who were called in to manage the bank after a one hundred billion loss took pains to explain the gains they have made in turning around the fortunes of the ailing bank.
Managing Director John Okrafo Smart explained that there would not be any dividends for the year 2016 because they had failed to meet the requirements set by the Bank of Sierra Leone.
Okrafo Smart encouraged the share holders that they had moved the Bank from a one hundred billion loss in 2013 to a 1.5 billion profit for the year 2016. He assured all that by next year things would be different.
The question of bad loans and their recovery was the subject of several questions.
However the real issue was when the shareholders representative James Sampha Koroma informed other shareholders that he had strongly protested over the dilution of the value of shares held by the shareholders by the majority shareholder which is government without any notice or recourse to the shareholders.
James Sampha Koroma disclosed that the government had taken the decision to dilute the 49% owned by the shareholders to 35% while increasing its own 51% to 65%.
What was more worrying to the shareholders was the revelation that there were rumours that the government wanted to sell its shares. Mr Koroma said if any such move should take place it was fit and proper that the local shareholders should be informed and given first option to increase their shares.
Monday March 06, 2017

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