A fresh wave of criticism has erupted over the John Dramani Mahama administration’s latest decision to reassign revenue collection duties in all regio
A fresh wave of criticism has erupted over the John Dramani Mahama administration’s latest decision to reassign revenue collection duties in all regional agricultural offices from state-owned Ghana Commercial Bank (GCB) to the privately-owned Universal Merchant Bank (UMB), sparking questions over transparency, favoritism, and national interest.
The directive, revealed through an internal memo dated July 30, 2025, from the acting Director of the Plant Protection and Regulatory Services Directorate (PPRSD) of the Ministry of Food and Agriculture, instructed all regional officers and officers in charge (OICs) to submit comprehensive data on revenue collection points within their jurisdictions.
These include RADUs (Regional Agricultural Development Units), post offices, and various agricultural entry and exit checkpoints.
The stated purpose: to enable UMB to take over on-site banking services for the directorate.
The memo, labeled urgent, requested the information to be submitted by midday on July 31, 2025, giving officers across the country less than 24 hours to comply.
It is seen as the latest in a series of moves where UMB has increasingly been awarded government-linked financial operations, often at the expense of Ghana’s oldest and largest indigenous bank, GCB.
UMB ownership is linked to one of the president’s brothers.
Concerns Over “Reset” Strategy
The development has raised eyebrows among policy analysts, opposition voices, and elements within civil society, who accuse the government of undermining the state’s financial institutions in favor of private interests.
“What exactly is this so-called ‘Reset Agenda’ if it sidelines GCB, the nation’s own bank, and hands critical contracts to a relatively smaller, privately-owned institution?” one financial expert asked rhetorically. “Why is UMB being handed so many government-related accounts and responsibilities while GCB is being stripped of its traditional mandate?”
Analysts warn that replacing GCB—known for its extensive branch network, longstanding public trust, and government majority ownership—with a bank that lacks similar infrastructure and oversight raises fundamental issues of capacity, risk, and value for money.
This is not the first time concerns have been raised about the growing financial footprint of UMB in state transactions.
Under the Mahama administration’s second term, UMB has reportedly secured several government-related accounts and contracts.
Critics argue that the trend suggests favoritism and raises red flags about competition, procurement processes, and broader governance principles.
“It’s grotesque,” said one senior civil servant familiar with the internal workings of the ministry.
“Why would any administration starve its own national bank of revenue while strengthening a private bank with limited coverage in rural areas where these agricultural services are most needed?”
Some have questioned whether the reassignment of revenue services to UMB was subjected to competitive bidding or public procurement guidelines under Ghana’s financial laws.
There has been no official public communication from the Ministry of Agriculture or the Ministry of Finance explaining the rationale behind the change.
Potential Impacts
The decision could have widespread implications. GCB, which has historically managed regional government accounts, stands to lose significant transaction volume and revenue, potentially affecting its ability to provide subsidized banking services in remote areas.
For UMB, on the other hand, the directive presents a windfall opportunity to expand its reach and cash flow with state-backed operations.
Beyond institutional consequences, the change may also affect agricultural stakeholders.
GCB’s well-established presence in rural communities has made it a reliable partner for many farmers and agribusinesses.
The logistical readiness of UMB to operate efficiently across all revenue points remains uncertain.
For now, the Ministry has remained tight-lipped, but as the deadline for compliance with the memo expires, the public pressure is expected to intensify
Whether this shift will stand or face parliamentary scrutiny remains to be seen, but what is clear is that the redirection of state revenue flows from a national to a private bank has ignited serious questions about governance, national interest, and the true meaning of Mahama’s economic “reset.”
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