Last week Ecobank replaced it’s group CEO Tanoh with Albert Essien following the whistleblowers antics of Dorego the former Finance Director (now reinstated). Whilst most people will be happy about this action particularly the SEC and ETI’s largest shareholder South Africa’s PIC not everyone is indeed happy at least by the choice to replace Tanoh with Essien.
One of those not happy is Renaissance Capital and this is what they had to say.
“We think Tanoh’s exit should please investors who have been concerned about his involvement in the corporate governance issues raised in Do Rego’s reports. However, the appointment of Essien, if it turns out to be anything more than an interim appointment, may be taken negatively by the market, in our view. He served closely under former CEO Arnold Ekpe – during the period of rapid expansion when the sizeable increases in the cost base resulted in a sharp fall in returns and hence value destruction. While he seems, to us, an obvious choice in the interim, we are not convinced he is the best long-term CEO solution for the Group. Going forward, we believe ETI still needs an experienced chairman to provide strategic direction, an invigorated board and a CEO who can drive consolidation and ensure a culture of cost control is well entrenched.”
Get more on the ETI board controversy here