His comment comes hours after the Commission on Human Rights and Administrative Justice’s (CHRAJ) cleared Mr. Ofori-Atta of allegations of conflict of interest levelled against him in the deal.

[contextly_sidebar id=”pY36c3b7iah1TgjmUXvP3HM4FUBjCGbO”]Mr. Adongo, who is a Member of Parliament’s Finance Committee, however, argued that CHRAJ’s findings expose more serious lapses in the process.

He believes Mr. Ofori Atta and his cronies deliberately failed to ensure transparency in issuing the bond.

“…These are career professionals who have been doing this for decades. Why is that they got it right all the time but on this occasion, they decided to side-step every single process of transparency in order to issue this bond? In fact, in one of the instances, we realised that the position was even worse than we thought. That they were instructed at 12.00 to start the bidding and by 2 the bidding will close- two hours.

“We even thought that it was four hours. In some of the instances, the report indicates that even before the Bank of Ghana was aware of what Ministry of Finance wanted it to borrow for this, the book runners were already advertising it so where did the book runners get the information? What was it that within two hours, Franklin Templeton and plenty of his associates were aware of this transaction and were able to bid? The issue is murkier and it is much more an indictment on Ken Ofori Atta and I have said that Ken Ofori Atta is the biggest risk to the financial system of this country and if we do not take care, Ken Ofori Atta will collapse this country.”

CHRAJ commenced investigations into the case five months ago after a known member of the National Democratic Congress (NDC), Yaw Brogya Genfi, petitioned it in April, to investigate Ken Ofori-Atta’s position in the issuance of the bond.

According to Mr. Genfi, Ken Ofori-Atta, secured 95 percent of the bond for his “family and friends.”

He said Mr. Ofori Atta “has attempted to promote a private or personal interest for himself or for some family members and business associates, and the promotion of the private interest has resulted in, or was intended to result in, or appears to have resulted in, or has the potential to result in an interference with the objective exercise of his duties and an improper benefit or an advantage by virtue of his position.”

He added that the bonds were not on the issuance calendar and that the transaction seemed to have been shrouded in secrecy with the bond processes being limited to one day, compared to past processes that were open.

Mr. Genfi said that a single investor, Franklin Templeton Investment Limited, an American global investment management organisation founded in 1947, purchased 95 percent of the bond issued.

He insisted 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 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 were “great friends.”

But CHRAJ in the 140-page report after its investigations said that “there was also no evidence before the Commission that there was a personal benefit to the Respondent or his private businesses and other relations.”

Ofori Atta breached processes in issuance of bond

Although there was no evidence that Mr. Ofori-Atta benefited personally from the transaction, the Commission found breaches of the rules on the issuance of bonds.

On the basis of that, it gave several directives in the exercise of its powers under Article 287 (2) of the Constitution that provides that “The Commissioner for Human Rights and Administrative Justice or the Chief Justice as the case may be, may take such action as he considers appropriate in respect of the results of the investigation or the admission,”and  directed that the Minister ensures that all processes in the issuance of bonds by MoF and the Bank of Ghana (BOG) are complied with.

It also directed that the minister, as a matter of urgency, pass regulations, rules or guidelines to regulate 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.

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By: Marian Ansah/citifmonline.com/Ghana

The post Ofori-Atta ‘manipulated processes’ in $2.25bn bond – Adongo appeared first on Citi 97.3 FM - Relevant Radio. Always.

A statement on the petition by the Minority and copied to Citi Business News  said,

“The SEC will primarily be investigating suspected conflict of interest and insider trading which are violations of US law by the Hon. Trevor G. Trefgarne who is a Director of Franklin Templeton and a Board Chairman of Enterprise Group – a company owned and founded by the Finance Minister of Ghana, Hon. Ken Ofori Atta.”

Government in April this year raised $2.25 billion from four bonds including a 7 and 15 year bond, at a rate of 19.75%.

The bond which was open to resident and non-resident investors raised a lot of concerns especially from members of the opposition NDC.

The Minority raised issues of possible conflict of interest following the purchase of 95% of the bonds by Mr. Trefgarne who is a Director of Franklin Templeton and a Board Chairman of Enterprise Group.

Gov’t defends bonds issue

Government has since defended the bonds issue explaining that it did not flout any regulation.

For instance, at the recent World Bank/IMF Spring meetings in Washington, the Vice President, Dr. Bawumia criticized the Minority describing their stance as a display of ignorance on the situation.

Some financial analysts have also said government did no wrong concerning issues of conflict of interest raised by some critics.

The Minority’s petition, Citi Business News understands, was filed early this month (May) by the Ranking Member on Parliament’s Foreign Affairs Committee – Hon. Samuel Okudzeto Ablakwa on behalf of the Minority.

The US SEC has since acknowledged receipt of the petition.

Lawyer demands authentic details of $2.25bn bond

The move by the Minority follows a similar one embarked on by private legal practitioner, Victor Kojogah Adawudu.

He has written to the government requesting for more information on the controversial $2.25 billion domestic bond which was issued in April 2017.

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.

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.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Minority petitions US SEC over $ 2.25bn bond appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to the Minority, this will lead to investigations by the US regulatory body into the bond issuance in which a US registered company, Franklin Templeton, purchased 95 percent of 15-year and 7-year bonds.

[contextly_sidebar id=”dMtACW9V8jaeynrtxTiiTDJX15umNHkR”]“The SEC will primarily be investigating suspected conflict of interest and insider trading which are violations of US law by the Hon. Trevor G. Trefgarne who is a Director of Franklin Templeton and a Board Chairman of Enterprise Group – a company owned and founded by the Finance Minister of Ghana, Hon. Ken Ofori Atta,” a statement from the Minority explained.

The Minority’s complaint was filed by its Ranking Member on Parliament’s Foreign Affairs Committee, Samuel Okudzeto Ablakwa on May 1, 2017.

The Minority has already called for a full-scale parliamentary probe into the bond issue, amidst concerns over the perceived secrecy and conflict of interest in the bond issue.

In April 2017, the Ashanti Regional Youth Organiser of the National Democratic Congress (NDC), Yaw Brogya Genfi was also compelled to petition the Commission on Human Rights and Administrative Justice (CHRAJ) to investigate the $2.25 billion bond whilst posing a series of questions.

More recently, a private legal practitioner wrote to the Attorney General requesting for more information on the controversial $2.25 billion domestic bond.

The Ministry of Finance, however, described attacks on the $2.25 billion bond issued as baseless, asserting that the issuance was not shrouded in secrecy or cooked for any particular investor.

Find below the full Minority statement

US$2.25 BILLION BOND SCANDAL – MINORITY SUCCESSFULLY PETITIONS SECURITIES AND EXCHANGE COMMISSION OF THE UNITED STATES OF AMERICA

The National Democratic Congress Minority in the Parliament of Ghana wishes to bring to the attention of the good people of Ghana that in fulfilment of the pledge we made at our April 17, 2017 media encounter and consistent with our constitutional and democratic mandate, we have successfully filed a complaint with the Securities and Exchange Commission (SEC) of the United States of America. This will lead to the commencement of investigations by the US regulatory body into the infamous US$2.25 billion bond issuance in which a US registered company – Franklin Templeton purchased 95% of 15-year and 7-year bonds.

The SEC will primarily be investigating suspected conflict of interest and insider trading which are violations of US law by the Hon. Trevor G. Trefgarne who is a Director of Franklin Templeton and a Board Chairman of Enterprise Group – a company owned and founded by the Finance Minister of Ghana, Hon. Ken Ofori Atta.

The Minority’s complaint was filed with the Enforcement Division of the SEC in Washington DC on 1st May, 2017 by our Ranking Member on Parliament’s Foreign Affairs Committee – Hon. Samuel Okudzeto Ablakwa on behalf of the Minority.

In a response, the SEC thanked the Minority for the fruitful engagement and provided a reference number for the case as: TCR1493656314549.

The Minority also wishes to observe that, note has been taken of the interest shown in this matter by Ghana’s Commission on Human Rights and Administrative Justice (CHRAJ) after receiving a petition from a private citizen and assures that the investigations being conducted by the United States regulatory body will not conflict nor undermine CHRAJ’s investigation.

The Minority takes this opportunity to re-emphasize our commitment and cooperation in assisting with both investigations in any way we can in the supreme national interests of Ghana and the United States of America.

Signed, Hon. Haruna Iddrisu (Minority Leader) [16th May, 2017]

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

The post Minority petitions US SEC to probe $2.25bn bond appeared first on Citi 97.3 FM - Relevant Radio. Always.