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{{Kenya and Ethiopia will accelerate implementation of infrastructure projects to tap the economic potential of the two countries.}}

President Uhuru Kenyatta and Prime Minister Hailemariam Desalegn noted that infrastructure projects linking Kenya and Ethiopia were key to the realisation of the ideals of shared prosperity of the countries, peoples and the sub-region.

In a communiqué issued after bilateral talks in Addis Ababa, the two leaders noted that the rapport between Kenya and Ethiopia had contributed to the progress achieved in the execution of the region’s largest infrastructure project – the Lamu Port and Southern Sudan-Ethiopia Transport (LAPSSET) Corridor.

President Kenyatta and Prime Minister Desalegn lauded the promotion of the Joint Ministerial Commission (JMS) to a biennial High Level Commission.

“This elevation will result in further enhancing cooperation to the ultimate benefit of the citizens of the two countries,” the communiqué said in part.

The President and the Prime Minister welcomed the enactment of the Special Status Agreement (SSA) signed in 2012. They agreed that the agreement provided an effective framework for economic relations between Kenya and Ethiopia.

Given the importance of the SSA in boosting economic ties between Kenya and Ethiopia, President Kenyatta and Prime Minister Desalegn directed their relevant ministers to hasten its implementation.

President Kenyatta congratulated Prime Minister Desalegn for his stewardship of the African Union during his tenure as Chair of the continental body.

“It was during this period that the African Union reinforced its role as the voice of the continent in the multilateral arena,” President Kenyatta said.

The two leaders considered the situation in South Sudan and expressed concern over deteriorating security in Africa’s youngest nation. They resolved to continue their engagement with all parties to the conflict through the Intergovernmental Authority on Development.

Both leaders agreed that all parties in the South Sudan conflict should recommit themselves to dialogue and cessation of hostilities to give peace a chance.

President Kenyatta and Prime Minister Desalegn also committed to work closely under IGAD’s framework, in support of the people of Somalia in their quest for lasting peace and stability in the Horn of Africa nation.

Noting that stability in Somalia was vital for success in the fight against terrorism, the Kenyan leader and his Ethiopian counterpart urged the international community to support peace initiatives in the country.

Both leaders reaffirmed their commitment to the security, common values and fundamental interests of the region.

Together, they set themselves to combat the region’s difficulties, among them drought, climate change, terrorism, piracy, money laundering, human and drug trafficking.

President Kenyatta and Prime Minister Desalegn also supported proposals to inaugurate a Cooperative Framework Agreement that would establish a Joint Lake Turkana, Omo and Daua Rivers Basins Commission to manage their resources to international standards.

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{Thierry Tanoh during a visit to Kenya on August 22, 2012. Ecobank board has removed him as the chief executive following months of turmoil over corporate governance and leadership.}

{{The board of Ecobank removed its chief executive, Thierry Tanoh, on Tuesday following months of turmoil at one of the biggest financial institutions in sub-Saharan Africa.}}

The crisis over corporate governance and leadership that led to Mr Tanoh’s departure is seen as a test case for regulators and has put a spotlight on the integrity of financial institutions on a continent where economies are expanding rapidly.

Ecobank named deputy CEO Albert Essien as its new chief executive. It also announced the reinstatement of finance director Laurence do Rego, which was a demand by Nigeria’s securities regulator, which is investigating alleged breaches of corporate governance.

“Ecobank Transnational Incorporated today (Tuesday) announces the departure of Group CEO Mr Thierry Tanoh with effect from 12 March 2014. Effective the same date he will no longer be a director of ETI,” the bank’s holding company said in a statement.

Mr Tanoh could not immediately be reached for comment.

Mr Tanoh’s supporters have said he was under pressure because of his drive to expose and correct abuses of corporate governance that pre-dated his tenure, which attracted powerful enemies nervous of what he might uncover.

Mr Essien, who is from Ghana, has been at Ecobank for more than 20 years and rose to deputy group CEO two years ago.

The 12-member board made its decision at a meeting in Yaounde, the capital of Cameroon, a senior bank official said. Mr Tanoh did not attend.

The Ivorian took the reins as CEO in January 2013, having previously served as a vice president at the International Finance Corporation, the investment arm of the World Bank.

Ecobank is based in Togo and has a presence in 35 African countries. There are few other pan-African banks, and the continent’s biggest financial institutions are based in South Africa.

Under Mr Tanoh, profits grew 56 per cent in the first nine months of last year, and his defenders said those results reflected his leadership qualities.

But his tenure was also marked by a row over his bonus and by an investigation launched last August by Nigeria’s Securities and Exchange Commission (SEC) after Ms do Rego told the regulator that Mr Tanoh had pressured her to misstate 2012 financial results.

Ecobank denied that allegation and said Ms do Rego had previously been suspended in a dispute over her qualifications.

The SEC in January criticised what it said was an absence of clear vision and strategy at the bank, inadequate transparency in recruiting and conflicts of interest.

It also demanded that Ms do Rego be reinstated as a whistleblower, something the bank said would be against Togolese law.

Last week, shareholders at an extraordinary general meeting voted to implement reforms designed in part to answer the regulator’s criticism. In an apparent snub to Mr Tanoh, they also told the board to reinstate Ms do Rego.

A senior Ecobank official played down the impact of the crisis on the bank.

“It’s obviously caused people to be a bit concerned, but if you look at the share price it is slightly down this year, but it is still much higher than at the end of 2012,” the official said.

{{Boardroom battle}}

Mr Tanoh’s position as CEO was undermined by a series of defections from the board at a bank that had attracted little adverse publicity under the long tenure of its previous CEO, Arnold Ekpe.

“This (Mr Tanoh’s departure) was just a matter of time. I expect a positive response in terms of the market’s view of Ecobank’s corporate governance,” an institutional investor said, declining to be named.

Four executives on Mr Tanoh’s top five-person committee wrote on February 13 to interim chairman Andre Siaka to say Mr Tanoh should resign to solve a crisis of leadership.

That email was sent by Mr Essien, who was executive director of corporate and investment banking in addition to his duties as deputy CEO.

On March 1, non-executive board member Daniel Matjila denounced Mr Tanoh in a letter to Mr Siaka and the board, calling for his contract to be terminated immediately. Mr Matjila represents South Africa’s Public Investment Corporation, the bank’s largest shareholder with 18.35 per cent.

His letter had the support of two other board members, which had amounted to a total of seven who came out publicly to oppose Mr Tanoh before Tuesday’s meeting.

{businessdaily}