“The AG and Ken Ofori Atta simply do not understand the case before CHRAJ or they are simply being mischievous,” he stated in a Citi News interview.

[contextly_sidebar id=”z5IvZcbObsNq7hcItsNKHC5br7f6Llar”]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.”

But 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.”

Thus he argued that “when the Attorney General acted as the lawyer to Ken Ofori-Atta in a matter which is personal to him, in my view, it was an irregularity. And I think that CHRAJ should be aware of the kind of situation we are being led into.”

“Can you imagine if at the end of the day, CHRAJ makes a recommendation that Ken profited from this deal and that he is to refund some monies to the state, who will enforce this recommendation – the Attorney General?” he asked.

“When this order is made, it will be difficult for the Attorney General to now begin to act against Ken because it will amount to professional misconduct,” Mr. Amaliba concluded.

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

The post AG shouldn’t be defending Ofori Atta in $2.25bn saga – Amaliba appeared first on Citi 97.3 FM - Relevant Radio. Always.

Speaking on Eyewitness News, Mr. Adongo said the apparent secrecy surrounding that $2.25 billion bond had eroded investor confidence.

[contextly_sidebar id=”vdnzS0oA984vr0iKWFcuId10BdkcV3wF”]“The biggest challenge for this debt is the fact that the international investor community has lost confidence in the Ghanaian capital market. They are not very happy with the way the $2.25 billion debt went, and they are not happy with the way government is running away from answering basic questions that will satisfy the market.”

According to the MP, indications are that, it may take about a year for the processes to start on the bond despite government having used days to raise the $2.25 billion bond.

The government announced plans to issue the 15-year bond in April in 2017, to settle all outstanding debts in the energy sector.

The bond is also aimed at improving the financial strength of the State Owned Enterprises (SoEs) in the energy sector and make them competitive.

We won’t forget about controversial bond

In Mr. Adongo’s view, the government is buying time to see if it can manoeuvre and get the Minority in Parliament to back down on its claims of conflict of interest, among others.

“They are going to use six months to get a transaction advisor. That transaction advisor will spend another three months to come back to advise government, then you start a process basically to push it into one year, by which time they believe the investor community would have forgotten about this fraudulent deal which has rocked Ghana.”

“They should rather be doing a lot to allay the fears and concerns as to how one of the most efficient financial markets in the world suddenly became a Ponzi financial system,” the MP asserted.

Mr. Adongo failed to substantiate his claims about the loss of investor confidence over the 15-year bond.

He however insisted to the Eyewitness News host that, “The truth is they know that the investors are running away from this bond.”

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

The post Investors may shun $2.4 bn bond – NDC MP appeared first on Citi 97.3 FM - Relevant Radio. Always.

In an interview with Citi News, Mr. Adawudu said the Attorney General, Gloria Akuffo could at least have solicited information on the bond from the Ministry of Finance or the Bank of Ghana to respond his written request.

[contextly_sidebar id=”qaCOo8BMRbweUdjBzec5tSfZLLePEgKo”]The Attorney General, in a written response, acknowledged receipt of Mr. Adawudu’s letter but said: “the information being sought per your letter is not available to me and I am therefore unable to respond to the questions posed therein.”

But in Mr. Adawudu’s view, the Finance Ministry, which issued the bond in April 2017, is at the centre of this controversy and should have answers that the Attorney General can draw from.

“If the Attorney General, who is the government’s legal advisor, says she is not aware, they [Finance Ministry] should be aware. The Bank of Ghana should also be aware because it is a loan,” he contended.

The lawyer, however, said he did not write straight to the Bank of Ghana or the Finance Ministry because “this is a legal matter, it is a constitutional matter. That is why I am surprised the legal advisor to the government says that she cannot answer… the person who is in charge of the government machinery that gives legal opinion and advice is the right person who will answer.”

Mr. Adawudu again outlined his questions about the bond noting they were aimed at addressing previous concerns.

“If you look at the questions I have asked, there are a lot of question that stem from the process of how the money has been settled, which people settled the amount, whether it was in cedis or in foreign currency and in which account the money was settled. This is very detailed and specific information I am asking for.”

Conflict of interest in bond issue

The Minority first cried foul over the bond alleging conflict of interest on the part of the Attorney General and the Finance Ministry, Ken Ofori Atta.

The Minority in April said a non-executive director on the Board of Investment Firm, Franklin Templeton, which purchased 95 percent of the bond, is also the Chairman of the Enterprise Group, which has links to the Attorney-General and the Finance Minister.

The Minority proceeded to file a complaint with the Securities and Exchange Commission (SEC) of the United States of America in the hope that it would lead to investigations by the US regulatory body into the bond issuance and the involvement of Franklin Templeton, which is a US registered company.

The SEC will primarily be investigating the suspected conflict of interest and insider trading, which are violations of US law, by 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, a statement from the Minority explained.

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

CHRAJ steps in

The Commission on Human Rights and Administrative Justice (CHRAJ) on May 5, 2017 requested the Minister of Finance 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 request for the Minister’s comments followed a petition by the Ashanti Regional Youth Organiser of the National Democratic Congress (NDC), Yaw Brogya Genfi, who urged the commission to investigate the $2.25 billion bond, whilst posing a series of questions.

In a response on May 21, 2017, the Finance Ministry requested for 15 extra working days to respond to CHRAJ’s queries on whether or not he contravened provisions of the 1992 Constitution in the public offer of the bond.

The Finance Ministry noted that in order to properly respond to the issues with supporting documentation, the extension by an additional 15 business days was required.

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

The post AG’s response to questions about $2.25bn bond baffling – Lawyer appeared first on Citi 97.3 FM - Relevant Radio. Always.

At a press conference today [Tuesday], the Minority Spokesperson on Finance, Cassiel Ato Forson, claimed that a non-executive director on the board of investment firm, Franklin Templeton that purchased majority of the bonds is also the Chairman of the Enterprise Group; a company closely aligned to the private interests of the Finance Minister, Ken Ofori-Atta.

[contextly_sidebar id=”3DxxJIWdFcYL7WatFEYCuswiP1iJitTX”]Ato Forson alleged that, the bond was conveniently prepared for the Minister’s friends and business partners to have easy access and enjoy the high eighteen percent to nineteen percent interest on the bond.

“Honourable Trevor Trefgarne  is also a Director of Franklin Templeton which is the main participant in the recent bond issue. Putting this apparent fact together, we have a reason to believe that there was a relational interest between our Finance Minister and his good friend Trevor Trefgarne which creates a potential lack of transparency and a conflict of interest. As we all know, the constitution of the republic provides unequivocally that a public officer should not put themselves in a situation where their private interest conflicts with their public obligation. There is no record available to us to the effect that the Finance Minister made known publicly his relational interest that conflicts very much, so in the interest in his company with Trevor Trefgarne  to the extent to which the relation might have potentially affected the decision to sell majority of the bonds to Franklin Templeton.”

“There is no disclosure as to the extent to which the determination of the price of the bond could have been affected by the relationship between the Finance Minister and his friends; Franklin Templeton. Now that a  good link has been established between the Finance Minister and his friend, Trevor, it is clear that the Finance Minister issued the bond in a way that will favour his friends, family and business partners. This situation is best described as cronyism and nepotism,” Ato Forson said.

Government on Monday April 3, 2017, announced it was successful in the auction of a total of 2.25 billion dollars in four bonds.

The first two bonds, totaling 1.13 billion dollars, was issued at 15 and 7 years period with the same coupon of 19.75%.

In addition, the Ministry of Finance raised the cedi equivalent of USD1.12 billion in 5 and 10 year bonds via a tap-in arrangement.

Meanwhile, one of the Deputy Ministers for Finance, Charles Adu Boahen on the Citi Breakfast Show today [Tuesday], defended the bond issue and shed more light on it.

“The average interest rate on our local debt is about 22% and if we borrow, we just borrowed at about 19.5% so if we borrowed at 19.5% to pay off your short-term money at 22%, then we have made a saving on the interest rate differential. We’ve also reduced the roll over pressures on our team in terms of having to go out there to scramble to find money, and that also reduces the demand for short-term instruments which actually improves your interest rates because it is a demand, supply situation.”

The Minority further alleged that, the Addison Committee which reviewed the AMERI deal had been compromised with their decision to accept a fully sponsored trip to Dubai from AMERI, a situation the Minority Spokesperson Cassiel Ato Forson described as embarrassing.

“We heard the honourable Minister of Information, Honourable Mustapha Hamid confirm to the public that the Addison committee which was tasked to investigate Ameri power purchase agreement, traveled to Dubai under the sponsorship of Ameri. The information available to the public now is that, some members of committee, traveled to Dubai on a first class ticket via Emirates Airline 787. They were hosted at  a first class hotel. They were suppose to be there by 3 days, but they extended it for  a week for reasons best known to them…”

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

The post Ken Ofori-Atta secured $2.25bn bond for cronies – Minority appeared first on Citi 97.3 FM - Relevant Radio. Always.