According to him, although Brogya Genfi, the Ashanti Regional Youth Organizer of the NDC was fronting the action, the likes of Tamale Central MP, Inusah Fuseini, Minority Leader, Haruna Iddrisu, Minority Chief Whip,Muntaka Mubarak, North Tongu MP, Okudzeto Ablakwa, Ketu South, Fiifi Kwetey were pulling the strings.

“They are a group of destructive citizens. Brogya Genfi led the whole thing but behind him is a whole arsenal in the likes of Inusah Fuseini, Haruna Iddrisu, Muntaka Mubarak, Okudzeto Ablakwa, Fiifi Kwetey. And all that team are there supporting what he is doing in a mischievous way to try and derail the progress of the country,” he said in Citi FM’s news analysis programme, The Big Issue yesterday [Saturday].

[contextly_sidebar id=”7zgQuNLluCDoFEXgChN8Se5XdAc2VQhP”]According to Information Minister, Mustapha Hamid, Ken Ofori Atta has indicated that he is going to court to compel the Commission on Human Rights and Administrative Justice (CHRAJ) to overturn some of the declarations made against him following the petition submitted to the Commission by Brogya Genfi.

Genfi, in April 2017, petitioned CHRAJ to investigate the $2.25 billion bond issued by government, citing possible conflict of interest in the deal with regards to the Finance Minister and his alleged acquaintances, whom Genfi claimed had bought the bond at convenient rates.

CHRAJ, after months of investigations, said Ofori-Atta breached certain processes in the issuance of the bond but cleared him of all claims of conflict of interest.

Minority pushes for Ofori-Atta’s dismissal

On the back of the CHRAJ report, the Minority called on President Akufo-Addo to sack the Finance Minister, for breaching aspects of the law in the issuance of the bond

They have also suggested that the Finance Minister could alternatively resign over the matter.

“We serve notice that in the event that the President, Nana Akufo-Addo does not exercise appropriate judgment, we will initiate an action of censurship against the Minister. We in the minority feel strongly vindicated by the [CRAHJ] report… All of us must uphold the laws of Ghana including the Minister for Finance,” Minority Leader, Haruna Iddrisu said.

Ofori-Atta won’t resign

But Casely-Hayford is sceptical over the call for the removal of the Finance Minister by the Minority.

According to him, such action won’t materialize as the President would not be willing to get rid of such a crucial member of his government.

“He will not resign. The president, his boss will not sack him. The motion of censure will not work. His boss has no desire to dismiss his Finance Minister. The whole thing is an exercise in futility and it will not work. They [Minority] know that it will not work,” he added.

I’ll join Ofori-Atta’s suit – Brogya Genfi
In a related development, Brogya Genfi, had said he will file a joinder application should Ofori-Atta drag CHRAJ to court over its findings on the issuance of the $2.25 billion bond.

“I am very interested in it and as an interested party, I am going to join anything that the Finance Minister will institute against CHRAJ because I sent the petition to CHRAJ,” Genfi said in a Citi News interview.

–

By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

The post NDC MPs behind CHRAJ petition against Ofori-Atta – Casely-Hayford appeared first on Citi 97.3 FM - Relevant Radio. Always.

Speaking on Eyewitness News on Thursday, Yaw Oppong said the right institution to have investigated the matter is the Securities and Exchange Commission.

“The substantial issue confirms that the CHRAJ’s investigation did not grant the reliefs that complainants brought before it against the Minister, but if you read it carefully and from information that is in the public domain, CHRAJ for instance went into matters that it does not have jurisdiction to investigate or matters that exclusive jurisdiction or authority has been given to other statutory institutions.”

“For example, on the issues relating to the bond, such matters as far as I know, has been exclusively granted the Securities and Exchange Commission. For example, they have a committee that is mandated to do so in the name of the commission,” he added.

He referenced a case involving HFC where an issue was supposed to be investigated by the Securities and Exchange Commission but ended up at the High Court.

“They [HFC] went to the high court and that court received the application but didn’t have jurisdiction. When it went to the Supreme Court, the Supreme Court clearly said when it comes to matters relating to securities, the Securities and Exchange Commission is the first place of call to investigate that. Until they [Securities and Exchange Commission] have shown open bias or not been able to exhibit independence, then you can come to the court. So the Supreme Court struck out that application,” the private legal practitioner added.

He also added that, CHRAJ went beyond its jurisdiction to further investigate the Finance Minister’s assets saying that “I understand that, that matter was not part of the issues it was investigating.”

Background

The controversy over the bond begun after the Minority called for a full-scale parliamentary probe into how persons they referred to as very close friends of the Finance Minister, purchased 95 percent of the $2.25 billion bond issue in April 2017.

The NDC’s Ashanti Regional Youth Organizer, Yaw Brongya Genfi, subsequently petitioned CHRAJ to investigate the bond on grounds that Mr. Ofori Atta attempted to promote a personal interest for himself, as well as family and friends,.

On the substantive matter of conflict of interest, CHRAJ cleared Mr. Ofori-Atta of any wrongdoing, stating that, “on the basis of the evidence available to the Commission, it has come to the conclusion and therefore holds that, the allegations by the complainant that the respondent has contravened Article 284 of the 1992 Constitution by putting himself in a conflict of interest situation in relation to the issuance of the 5-year, 7-year, 10-year and 15-year bonds, have not been substantiated.”

CHRAJ however said that the Finance Minister, breached certain processes in the issuance of the bond.

In its 140-page report on the matter, CHRAJ made some suggestions to the Minister of Finance to ensure that due diligence is ensured in subsequent deals.

Among other directives, it said the Minister must pass regulations to monitor the format of and criteria for the auctions, and the procedures for participation, bidding, and allocation in auctions in relation to the issuance of securities in the domestic market.

CHRAJ further charged the Minister take measures in preventing Primary Dealers who are also bookrunners or transaction Advisors from gaining the unfair advantage because of their dual roles.

It had found the Primary Dealers also doubled up as bookrunners or transaction advisors, and that dual role gave them an undue advantage.

Group sues Ofori-Atta, AG, CHRAJ over $2.25 bn bond

A group calling itself Dynamic Youth Organisation of Ghana, has sued the Finance Minister, Ken Ofori Atta, the Attorney General and the Commission for Human Rights and Administrative Justice [CHRAJ] over the $2.25 billion bond issue.

The Convener for this new group, Edward Tutor, speaking on Eyewitness News last week explained that, the decision to clear Mr. Ofori Atta of any wrongdoing contravenes Article 284 of the constitution.

Mr. Tutor said their suit is to therefore to invoke the Supreme Court to interpret Article 284 of the 1992 constitution.

Ofori-Atta to sue CHRAJ

Meanwhile, the Finance Minister, Ken Ofori-Atta, may be dragging CHRAJ to court, over its handling of the petition in relation to the $2.25 billion bond issue.

He is heading to court to compel CHRAJ to overturn some of the declarations it considers irrelevant to the petition.

Addressing a news conference in Accra today [Thursday], the Information Minister, Mustapha Hamid, said the Finance Minister believes CHRAJ went “beyond the matter of conflict of interest to make pronouncements on other matters that it was not seized with the capacity to make.”

This was announced after the Minority in Parliament had reiterated their calls on the Minister to resign or be forced out constitutionally based on the findings of the CHRAJ report.

–

By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

The post CHRAJ exceeded its limit in $2.25b bond investigation – Lawyer appeared first on Citi 97.3 FM - Relevant Radio. Always.

Mr. Kevor, who has filed a suit at the Supreme Court, is praying the court to the stop AG from representing the finance minister.

[contextly_sidebar id=”eX9PMOEGxbrqmRxRX3LdPthkylwyXQRW”]According to the plaintiff, the action of the AG in responding to the petition on behalf of Ken Ofori -Atta is unconstitutional and must be declared null void.

The suit comes after the Deputy Attorney General, Godfred Dame, in a 16-page response to CHRAJ’s enquiry in a petition brought by the Ashanti Regional NDC organizer, Yaw Brogya Gyamfi, defended the Finance Minister over allegations that he may have been involved in a conflict of interest situation in the $2.25 billion domestic bond issued by government.

Mr. Genfi petitioned CHRAJ to investigate the bond on grounds that the Mr. Ofori-Atta attempted to “promote a personal interest for himself, as well as family and friends, which interfered with the objective exercise of his duties.”

A member of the NDC legal team, Abraham Amaliba, had previously described the Attorney General’s office’s decision to respond to the petition brought before CHRAJ as an irregularity.

Mr. Amaliba explained that, the defence from the AG’s office was wrong, because “the case before CHRAJ is a case personal to Ken Ofori Atta. It is a matter which in effect says that a public officer has used his private interests to allow that to override the public interest.”

The plaintiff is seeking:

1. A declaration that upon a true and proper interpretation of the provisions of the 1992 Constitution, particularly Articles 88(5), 218(a) and (e), 284 and 287 thereof, the 1^st defendant cannot act as the legal representative for Honourable Kenneth Nana Yaw Ofori Atta, the Minister of Finance of the Republic of Ghana, in a pending investigation bordering on conflict of interest and abuse of office before the 2^nd Defendant;
2. A further declaration that the purported response filed by the 1^st Defendant on behalf of the said Honorable Kenneth Nana Yaw Ofori Atta in respect of the petition concerning conflict of interest and abuse of office before the 2^nd Defendant is unconstitutional, null and void and of no effect whatsoever;
3. An order of perpetual injunction directed at the office od the 1^st Defendant restraining it from acting or purporting to act on behalf of Honourable Kenneth Nana Yaw Ofori Atta in respect of the said petition before the 2^nd Defendant; and
4. Any further or other orders as this honourable court would deem feet in the circumstances.

–

By: Fred Djabanor/citifmonline.com/Ghana

The post NDC man sues AG for defending Ofori-Atta in bond saga appeared first on Citi 97.3 FM - Relevant Radio. Always.

“It may be tempting to say that the apparent attempt to manufacture some form of integrity deficit is generally borne out of a lack of understanding of the actual process on the part of the manufacturers. But, that may be deemed too charitable, considering the CVs of some of the personalities involved,” he said.

The Finance Minister made the comment on the Floor of Parliament on Wednesday, when he was summoned before the House to explain processes leading to the issuance of the $2.25 billion bond.

[contextly_sidebar id=”kBbwlRSrWueDvGCzyQxiJOtOyI9Tz47k”]This comes on the back of a similar tag the Vice President, Dr. Mahamudu Bawumia, used in describing the Minority over the same issue saying they were “completely ignorant.”

Making a statement in Parliament in response to a half-hour motion passed bythe House for a full disclosure on the bond, the Finance Minister insisted that the processes involved were devoid of infractions and improper procedures.

He said during the issuance of the bond, the Ministry of Finance “had no direct dealings with investors.”

“All prospective bidders bid through their primary dealers, who in turn submitted the investor’s bids through the Central Securities Depository platform. The joint transaction advisers then collate these bids to build up a book on which the bonds are issued. At no time during the book building process did the Ministry of Finance negotiate with any investor in any way, and it will indeed be quite difficult to manipulate the process when the three financial institutions are governed strictly by the Bank of Ghana’s rules and regulations,” he added.

Mr. Ofori-Atta added that “there were no breaches of integrity either on government’s part or on the joint book runner’s part.” “It may be tempting to say that the apparent attempt to manufacture some form of integrity deficit is generally borne out of a lack of understanding of the actual process,” he added.

We’re not satisfied with response – Minority  

Meanwhile, the Minority in Parliament has expressed dissatisfaction with the depth of information provided to the House by the Finance Minister. Minority Spokesperson on Finance, Ato Forson, contended that the Minister failed to respond to relational interests between himself and an alleged Director of Franklin Templeton. He maintained that the information provided by government is incomplete.

Background

Parliament last week summoned the Finance Minister to provide detailed information on the recent 2.25 billion dollar bond issued by Government following a half hour motion filed by the Minority in Parliament.

Concerns have been raised especially by the Minority about the transparency of the $2.25 billion domestic bond government issued, with some noting that the apparent secrecy over the deal fueled the allegations of conflict of interest against the Finance Minister, Ken Ofori Atta.

The Minority in its conflict of interest allegations, said a non-executive director on the board of Investment Firm, Franklin Templeton, who purchased 95 percent of the $2.25 billion bond, is also the Chairman of the Enterprise Group, which has links to the Attorney-General and the Finance Minister.

The Minority eventually called for a full-scale parliamentary probe into the bond issue.

I don’t have details on bond

The Attorney General, Gloria Akuffo, who was petitioned by Private Legal Practitioner, Victor Adawudu to furnish him with details on the bond which was issued in April, said she did not have the needed information. She indicated that, details on the said bond the Lawyer is seeking to retrieve are unavailable to her.

–

By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

The post Minority lacks understanding on $2.25bn bond issue – Ofori-Atta appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to him, the accusations by the minority may be due to a genuine lack of understanding of the processes of bond issuance by the Minority.

The Minister’s statement is in response to a half-hour motion passed by Parliament to summon him to provide full disclosure on the bond issuance.

[contextly_sidebar id=”6HxIQZyCjYlzQJDtGHzHlFi6QAA5KK0t”]Responding to the motion on the Floor of the Parliament on Wednesday, Mr. Ofori Atta stated that, the issuance was transparent and was done in accordance with how bonds and government securities have been issued over the years.

He explained that the Ministry of Finance, during the issuance of the bond, “had no direct dealings with investors.”

“All prospective bidders bid through their primary dealers, who in turn submitted the investor’s bids through the Central Securities Depository platform. The joint transaction advisers then collate these bids to build up a book on which the bonds are issued. At no time during the book building process did the Ministry of Finance negotiate with any investor in any way, and it will indeed be quite difficult to manipulate the process when the three financial institutions are governed strictly by the Bank of Ghana’s rules and regulations.”

Mr. Ofori-Atta added that “there were no breaches of integrity either on government’s part or on the joint book runner’s part.”

“It may be tempting to say that the apparent attempt to manufacture some form of integrity deficit is generally borne out of a lack of understanding of the actual process,” he added.

Minority not satisfied

Meanwhile, the Minority in Parliament has expressed dissatisfaction with the depth of information provided to the House by the Finance Minister.

Minority Spokesperson on Finance, Ato Forson, contended that the Minister failed to respond to relational interests between himself and an alleged Director of Franklin Templeton.

He maintained that the information provided by government is incomplete.

Background

Parliament last week summoned the Finance Minister to provide detailed information on the recent 2.25 billion dollar bond issued by Government following a half hour motion filed by the Minority in Parliament.

Concerns have been raised especially by the Minority about the transparency of the $2.25 billion domestic bond government issued, with some noting that the apparent secrecy over the deal fueled the allegations of conflict of interest against the Finance Minister, Ken Ofori Atta.

The Minority in its conflict of interest allegations, said a non-executive director on the board of Investment Firm, Franklin Templeton, who purchased 95 percent of the $2.25 billion bond, is also the Chairman of the Enterprise Group, which has links to the Attorney-General and the Finance Minister.

The Minority eventually called for a full-scale parliamentary probe into the bond issue.

I don’t have details on bond

The Attorney General, Gloria Akuffo, who was petitioned by Private Legal Practitioner, Victor Adawudu to furnish him with details on the bond which was issued in April, said she did not have the needed information.

She indicated that, details on the said bond the Lawyer is seeking to retrieve, are unavailable to her.

–

By: Delali Adogla Bessa & Duke Mensah Opoku/citifmonline.com/Ghana

The post $2.25bn bond was very transparent – Ken Ofori-Atta appeared first on Citi 97.3 FM - Relevant Radio. Always.

The Lawyer indicated that, he might sue the AG if she fails to make details on the bond available.

[contextly_sidebar id=”TCGJkM4jp1mW8dCroMGy7AT8VvOObXFU”]“If the information I have is in the public domain, then there will be no need for me to go to court to compel the AG, but if I don’t have those details I think the best place to go will be the court,” he said.

The Lawyer had earlier explained that, the information he was seeking for was aimed at addressing several concerns voiced on the bond issuance.

Speaking on the Point Blank segment of Eyewitness News, Mr. Adawudu justified his request , saying “I am am exercising a constitutional mandate which says that I have a right to information.”

Making a case for his request , Mr . Adawudu further stated that, Ghanaians deserve to know how much will be paid as interest on the said bond.

What the lawyer requested for

In a letter addressed to the Attorney General and copied to the Ministry of Finance, Mr. Adawudu, who also enclosed a processing fee of GHc 1,000, said the information he was seeking for was aimed at addressing several concerns voiced on the matter.

“I am exercising my legal and constitutional right and the Attorney General is the principal legal adviser to the government. If you look at the Right to Information Bill, it is the Minister of Justice and Attorney General who is responsible if information is wanted,” he said.

“If you look at the information I am seeking, it is a very a extensive question, and I ask that the data should also be added.”

Mr. Adawudu noted that, most of the information on the bond issue was circulating in the media, but could not necessarily be taken to be the truth, despite the “rebuttable presumption that it is authentic.”

“The information that we are getting cannot just be said to be the authentic information, that is why I am asking for the authentic information from the government.”

Background

Concerns were raised about the transparency of the $2.25 billion bond, with some suggesting that, the apparent secrecy over the deal fueled the allegations of conflict of interest against the Finance Minister, Ken Ofori Atta.

Chief Executive Officer of Dalex Finance, Ken Thompson, remarked to Citi News that in times past, when bonds have been issued, there have been road shows, announcements or visits to Parliament “but this seems to have happened rather quickly.

The Minority in its conflict of interest allegations, said a non-executive director on the board of Investment Firm, Franklin Templeton, who purchased 95 percent of the $2.25 billion bond, is also the Chairman of the Enterprise Group, which has links to the Attorney-General and the Finance Minister.

The Minority eventually called for a full-scale parliamentary probe into the bond issue.

The Ashanti Regional Youth Organizer of the National Democratic Congress (NDC), Yaw Brogya Genfi, has also petitioned the Commission on Human Rights and Administrative Justice (CHRAJ) to investigate the $ 2.25 billion bond.

But the Finance Minister through the AG’s department, has asked CHRAJ to dismiss the petition because the claims are completely false.

–

By: Marian Ansah/citifmonline.com/Ghana
Follow @EfeAnsah

The post Lawyer threatens to sue AG over $2.2bn bond appeared first on Citi 97.3 FM - Relevant Radio. Always.

I ask, of what value was the announcement that a ‘$2.25bn bond, was successfully issued? Did politics seek to show that over 2bn was done when others struggle to do 1bn? Totally needless. For starters, there were no dollar bonds so why state them into dollars? Share official facts and outsource the spin. You announce a USD size bond and then create room for the opposition to battle the legality and legitimacy of the transaction. We all know external borrowing requires parliamentary approval but not local borrowing whose cap is limitless. The bond size was simply Ghs9.7bn.

If the objective was to provide comparative perspective to other USD bonds, then communication was obviously not optimal. State the Cedi size and indicate the dollar equivalent but don’t state the dollar equivalent without stating the primary cedi size.

Lesson 1: Don’t throw an unnecessary punch, you may just awaken your opposition.

Lesson 2: Just share the facts. Cut the spin. Outsource the spin if necessary. This is governance not elections.

Lesson 3: Allow technocrats to do their work!

The Opposition’s Fight

Obviously, almost every opposition somewhat hopes to be a nuisance under a government’s skin. When it fails to be constructive over time, the opposition will lose credibility, which is in itself a major threat to democracy and the critical watchdog role it plays.

Let’s get a few facts clear.

1. Parliamentary Approval

The Bond was not a USD bond so why question the legality of the bond issuance for lack of parliamentary approval? Our Cedi bonds and treasury securities have for a while now been open to foreign investors. The prospectus was clear in its distribution clause stating the condition below

“DISTRIBUTION: Marketed to Resident Investors/Open to Non-Resident Investors”

When foreign investors seek to partake in local bond subscriptions, they will naturally bring in foreign currency which is often exchanged for Cedis at the central bank to enable them to participate in the trade. This exchange does not make the bond a dollar bond. For example, changing your 10 dollars gifted you by your uncle at a forex bureau to pay your 40-cedi electricity bill does not make ECG bills dollar tariffs.

To a good extent, knowing the facts and insinuating otherwise nurtures the growing negative perception of the credibility of politicians.

2. Short Notice

There is no rule about the duration between the notice and the issuance date or book build close. It is totally dependent on the issuer and its confidence about the market as well as the funding urgency. If notices are inadequately short, it reflects in the market’s response. In this case, the market responded positively. In the last 2years, duration between the day of notice and book build close has varied between 3 and 12 days. In this instance, it was just a day. Any issue with this? I see none.

Some have questioned the auction window which opened and closed in a day. For starters, it is not the first and will not be the last. The 2013 Ghs400mn 3yr bond was also opened and closed in a day. The duration of an auction is often moderated by the assessed market confidence. Serious investors do not need much more time after ‘road shows’ or investor engagements amidst a 24hr price guideline notice? If it were inadequate, it would have reflected in the bond pricing and subscription.

3. Why allow foreign investors to crowd the bond subscription?

Local investors were allowed to participate but as things turnout often in our bonds market, foreign investors have proven more confident in Ghana than local investors.  Local investors comparatively shy away from longer term bonds as can be observed from the Central Securities Depository report for March 2017, below. They are more active in the short end of the curve.

The data above clearly provides direction as to which investors to primarily engage for long term bonds like the ‘Ghs 9.7bn’ bond. Obviously, bookrunners will seek to focus on foreign participation of which Templeton remains Ghana’s largest foreign investor before and after the bond issue.

4. Was the price rigged?

I don’t see how. Legacy Bonds Ltd subscribed to Ghs900m worth of bonds issued by the Bank of Ghana (not GoG) to fund a part of the BDC debt in December 2016. The bonds were issued at a coupon of 18.5%. By January and February 2017, the bond was trading at a yield between 20.5% and 22.85% on the secondary market despite having 90day T-Bills below 20%. Typically, for a market as volatile as Ghana, the longer the tenor, the higher the risk and yield required by investors. With BoG rated safer than GoG, the market is expected to demand higher yields for GoG securities than BoG bonds. It is, therefore, reasonable and very competitive to accept bond bids below 20% for the GoG long term bonds in recent times.

5. Was there a road show? Was Templeton contacted?

First, a roadshow does not imply travelling in first class cabins across the world to talk about your bond issuance intentions. It implies meeting up with potential investors, sharing investment information to whip up appetite for the floating of your securities. While it may involve travelling around to meet people, it is not a necessary condition if you are well networked within the investor community to rather engage remotely. There sure was a roadshow and it did not need an announcement.

Templeton is easily the largest non-government foreign investor in Ghanaian securities. It would have been ridiculous and immature for the Government not to have engaged them on their participation in a possible bond issuance. Meeting Templeton cannot be wrong and they were surely not the only ones contacted.

6. Secret trading?

Absolutely not. The bond was openly traded on the Central Securities Depository platform. Any dealer surely had access to trade. Other foreign and local investors participated in the subscription.

7. Conflict?

This may be more legal than finance but I don’t see where the market got shortchanged? The process was open to all, the market had prior wind of Government’s intentions through the ‘road show’ engagements. It was not abnormal to engage foreign and local investors over issuance intentions and Templeton was one of them. In fact, it would have been ridiculous and irresponsible to not engage Ghana’s largest foreign investor, Templeton, prior to issuance. Especially when it is known that long term bonds will be more patronised by foreign investors. The pricing was within the bookrunner’s expectations and lower than yields on less risky securities.

Conclusion

Politicians ought to be careful how communication over financial issues are managed in a relatively fragile market as ours. Poor or ill-informed communication heightens the political risk investors observe and feeds into our country risk, thereby increasing the global cost of capital to government and business.

While being critical is important for the growth of our markets and democracy, our critique ought to be constructive and well informed to avoid the continuous depletion of confidence in politics.

–

By: Senyo Hosi

The post The unnecessary political twist and turn of the GHs9.7bn bond [Article] appeared first on Citi 97.3 FM - Relevant Radio. Always.

The Chief Director of the ministry, Mr Patrick Nomo, in a letter dated May 11, 2017 requested for the extension of time.

The extension, according to the letter, was necessary to properly respond to the issues raised by CHRAJ in their letter to the Minister on May 5, 2017.

[contextly_sidebar id=”B5spbbz4juzsHrCIzZHJJSVCNKuGU13l”]The ministry said in order to properly respond to the issues with supporting documentation, an extension of time by an additional 15 business days was required.

He said that would enable him properly coordinate with all relevant parties, including external transaction advisors, for the information to be provided.

CHRAJ’s letter

CHRAJ on May 5, 2017 requested the minister to comment on whether or not he had contravened provisions of the 1992 Constitution in the public offer of the $2.25 billion bond in 10 days.

The letter of CHRAJ titled, “Allegation of contravention or non-compliance with Article 284 of the 1992 Constitution by Mr Ken Ofori-Atta – A public officer: Request for comments,” was delivered through the secretariat of the Minister, sources confirmed to Graphic Online.

The request for the Minister’s comments was based on a petition by a citizen, Mr Yaw Brogya Genfi.

In his complaint to CHRAJ titled, “Petition to investigate conflict of interest in the recent US$2.25 billion bond issued by the government of Ghana through the Ministry of Finance,” he alleged that the minister had placed himself in a conflict of interest position, and thus, in breach of constitutional provisions.

When Graphic Online contacted, the Commissioner of CHRAJ, Mr Joseph Whittal confirmed that the minister had asked for more time to respond.

“We are amenable to the request,” was all he would say.

Petition

Mr Genfi alleged in his petition that, “a number of issues of conflict of interest and the lack of transparency have emerged from the bond issuance.”

For instance, the bonds were not on the issuance calendar; the initial pricing guidelines of the bond were issued after working hours on March 30, 2017, while the public announcement of the transaction was sent by email at 9:09 am on March 31, 2017.

That meant that the transaction was opened before the announcement was made to the public.

Mr Genfi further alleged that April 3, 2017 was the Settlement Date and not the closing date of the bond.

He said one single investor, Franklin Templeton Investment Limited, an American global investment management organisation founded in 1947 purchased 95 per cent of the bond issued.

Mr Genfi was of the view that “a relational interest existed between the Minister of Finance and Mr Trevor G Trefgarne, who in a semi-annual report of the Franklin Templeton Investment Limited of December 31, 2016 is named as one of the Board of Directors of the organisation, while also being the Chairman of the Enterprise Group Limited.

“Enterprise Group Limited is a company partially owned by Data Bank Limited, a company in which the Finance Minister is known to have significant interest,” Mr Genfi said.

He also complained that Mr Tevor G Trefgarne and the Minister of Finance had also been described as “great friends.”

Directives

CHRAJ after its preliminary assessment of the petition asked the Minister of Finance for his comments on the allegations made against him.

It had asked the Minister in his responses, to as much as possible, support with any documents or information, “within 10 days and, if you admit to the allegations, to state so expressly.”

“The Commission would like to inform you that if you deny the allegations made against you, the Commission would cause the matter to be investigated,” the letter added.

–

Source: Graphic Online

The post Finance Minister wants more time to respond to CHRAJ on $2.25bn bond appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to the lawyer, Victor Kojogah Adawudu, he exercised his right to information due to the scanty details provided by the Ministry of Finance on the issue.

[contextly_sidebar id=”r89O2lZ121d4WFGlmNjPKiS7solrB5SV”]In a letter addressed to the Attorney General and copied to the Ministry of Finance, Mr. Adawudu, who also enclosed a processing fee of GHc 1,000, said the information he is seeking is aimed at addressing several concerns voiced on the matter.

“I am exercising my legal and constitutional right and the Attorney General is the principal legal advisor to the government. If you look at the Right to Information Bill, it is the Minister of Justice and Attorney General who is responsible if information is wanted,” he said in a Citi News interview.

“If you look at the information I am seeking, it is a very extensive question and I ask that data should also be added.”

Mr. Adawudu noted that most of the information on the bond issue was circulating in the media but could not necessarily be taken to be gospel  despite the “rebuttable presumption that it is authentic.”

“The information that we are getting cannot just be said to be the authentic information that is why I am asking for the authentic information from the government.”

Background

Concerns about the transparency of the $2.25 billion bond have been previously raised with some noting that the apparent secrecy over the deal is fueling the allegations of conflict of interest against the Finance Minister, Ken Ofori Atta in the issue.

Chief Executive Officer of Dalex Finance, Ken Thompson remarked to Citi News that in times past, when bonds have been issued, there have been road shows, announcements or visits to Parliament “but this seems to have happened rather quickly.”

The Minority in its conflict of interest allegations, said a non-executive director on the board of Investment Firm, Franklin Templeton, who purchased 95 percent of the $2.25 billion bond, is also the Chairman of the Enterprise Group, which has links to the Attorney-General and the Finance Minister.

The Minority eventually called for a full-scale parliamentary probe into the bond issue.

The Ashanti Regional Youth Organiser of the National Democratic Congress (NDC), Yaw Brogya Genfi also petitioned the Commission on Human Rights and Administrative Justice (CHRAJ) to investigate the $ 2.25 billion bond.

–

By: Umaru Sanda Amadu/citifmonline.com/Ghana

The post Lawyer writes to AG, demands ‘authentic’ details of $2.25bn bond appeared first on Citi 97.3 FM - Relevant Radio. Always.

Indications are that the Cedi may be set for a period of relative stability after significant depreciation on the interbank foreign exchange market and across forex bureaus in the country in 2017.

But Mr. Thompson said he expected “a huge dip” when the $2.25 billion bond run out.

[contextly_sidebar id=”PiDAHVtEZ33GzyHbXucnEfHSjFQGY1qC”]Furthermore, he said basing the strength of the economy on the  the strength of the cedi would be misplaced.

“The cedi does not reflect the true state of the Ghanaian economy and every time the cedi depreciates, we take our savings to prop it up. But how long can we continue to do that? The cedi must be allowed to reflect the true state of the economy.”

Government has indicated its resolve to ride on the back of its ‘Planting for Food and Jobs’ programme make Ghana more self-sufficient.

Mr. Thompson was speaking on Eyewitness News, after the President had launched the ‘Planting for Food and Jobs’ programme, where he stressed that, efforts must be directed at Agriculture if Ghana was to see any meaningful progress.

Farmers will still suffer

But the standing of the cedi means local consumers are likely to neglect local farmers and their produce, Mr. Thompson argued.

He explained that “the cedi at the rate at which it is, means our products produced [locally] are not competitive so people will still continue to consume imports and our farmers will suffer. You go to the north and we have farmers whose rice they can’t sell because it is cheaper to import from Thailand.”

Thus, Mr. Thompson opined that, “for us to get where we want to be, the industries based on imports would have to collapse and new ones based on exports will rise. It’s basic, but we keep putting our head in the sand.”

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By: Delali Adogla-Bessa/citifmonline.com/Ghana

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