Per their calculations, the loss is up to the tune of 330 million dollars per year over the next fifteen years.

[contextly_sidebar id=”Kzs9CAMAFjNAyG3ZAMgZfGtQIfU7TgTn”]According to the Minority Spokesperson on Finance, Cassiel Ato Forson, the difference between the rate of the bond and that of the current treasury bill rate is the cause of the huge amount of money the country is allegedly losing through the deal.

These comments follow recent actions taken by the minority for disclosure on the terms of the bond including a petition to the United States Securities and Exchange Commission.

Addressing the media, Cassiel Ato Forson said: “It will surprise you to know that, the use of proceeds as the Minister of Finance made it known to the public was categorical. He said the proceeds will be used for the purposes of switching short-term domestic instruments. And when we say short-term domestic instruments, we are making reference to 98 days treasury bonds and 192 days treasury bonds. Currently, treasury bonds as at 17th of April, is traded at 16.35%, and 182 days treasury bonds is traded at 16.70%, but what surprises me is that, the Finance Minister decided to go for a long-term debt of 19.5 % to switch off a debt of 16.35%. In fact, his actions are woefully causing financial loss to the state. From the calculations, it is clear that Ghana will be better off if we had decided to roll over the existing treasury bonds which is being traded at 16.35%, instead of going for 19.75 percent. From the calculations, Ghana would have been better off with $330 million US dollars if he had not decided to go on this tangent.”

Early on, Parliament passed a half hour motion to compel the Minister of Finance to provide detailed information on the recent 2.25 billion dollar bond issued by Government.

The Minister has seven days to respond to the motion.

The motion was filed by the Minority Leader, with a request for the full complement of documentation related to the issuance, the participants, the utilization of proceeds and the currency in which the bond was settled.

The Minority Leader, Haruna Iddrisu, moved the motion on the floor of Parliament.

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By: Marian Ansah & Duke Opoku Mensah/citifmonline.com/Ghana

The post Ghana to lose $ 330m yearly over $2.25bn bond – Minority appeared first on Citi 97.3 FM - Relevant Radio. Always.

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

[contextly_sidebar id=”3G5PRLUReBOGWzsjRUiYFDteisNJcvAc”]A 17-paged letter from the Attorney General’s office, signed by the Deputy Attorney General, Godfred Dame, however rubbished these claims, insisting that “there is no evidence of any act or omission on the part of either the Ministry or the Minister supporting an allegation of participation in a business transaction or activity for the benefit of friends or family.”

It further clarified that “neither did the personal interests of either the Ministry of Finance or the Minister for Finance interfere with the performance of their duties and functions.”

“To the extent that the allegations made by the petitioner had the real tendency to negatively taint an otherwise highly successful financial exercise of great import by the Government of Ghana, we deem the petitioner’s allegations as very deplorable, since same are clearly anchored on blatant falsehoods and manifest unfamiliarity with the regulations and procedure for the issue of Government of Ghana Bonds. We pray for the petition to be dismissed as grossly unmeritorious and frivolous,” the letter said.

Read details of the letter here

Brongya Genfi in his petition made the following requests

Mr. Genfi also demanded that the following questions must be answered:

• Was a substantial portion of the bond purchased by Franklin Templeton Investments, if so, how much? • Is Trevor G. Trefgarne a Director of Franklin Templeton Investments?
• Is Trevor G. Trefgarne the Chairman/Director of Enterprise Group Ltd?
• Are Dr. Mrs. Angela Ofori-Atta, Mr. Keli Gadzekpo, Hon. Gloria Akuffo and Hon. Ken Ofori-Atta Directors of the Board of Enterprise Group Ltd.?
• If not, were they Directors of the Board in the immediate past?
• Does Databank Ltd. own part of Enterprise Group Ltd. or any of its affiliates?
• Does Hon. Ken Ofori-Atta have any shares or business interest in Databank Ltd. or did he have any shares or business interest in the immediate past? •
• Is Keli Gadzekpo a business partner of the Minister for Finance or was Keli Gadzekpo a business partner of the Minister for Finance immediately before the Minister was sworn in as Minister for Finance?
• Did Hon. Gloria Akuffo resign from the board of Enterprise Group Ltd. and, if so, was this before the commencement of the process of the bond issuance?
• Did Hon. Gloria Akuffo, as Attorney-General & Minister for Justice, have no knowledge of the bond arrangement and, if so, why not?
• Were the initial pricing guidelines of the Bond issued around 5:37pm on March 30, 2017, after normal working hours?
• Was the transaction opened around 9.00am on March 31, 2017, and closed around 4.20pm of the same day?
• Was the transaction opened before the announcement was made to the public? • Was the placement method used competitive and transparent or was it “cooked” for one single investor? • Did the Minister for Finance make full disclosure of his relational interest in the bond issuance either before or during the process?
• Did the Attorney-General make full disclosure of her relational interest in the bond issuance either before or during the process?
• Did the Minister for Finance adhere to the 1992 Constitution, the Code of Conduct for Public Officers of Ghana, CHRAJ’s guidelines on conflict of interest for Public Officers, and other relevant rules and laws pertaining to conflict of interest and issues of corruption?
• Should the Minister for Finance resign or be removed from office?
• Did the Attorney-General and Minister for Justice adhere to the 1992 Constitution, the Code of Conduct for Public Officers of Ghana, CHRAJ’s guidelines on conflict of interest for Public Officers, and other relevant rules and laws pertaining to conflict of interest and issues of corruption?
• Should the Attorney-General resign or be removed from office?

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

The post Dismiss Brogya Genfi’s petition on $ 2.25bn bond – Gov’t appeared first on Citi 97.3 FM - Relevant Radio. Always.