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.

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

[contextly_sidebar id=”DH8G3PhqLMtUQHHifCd7kzIRemqSlYIF”]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.”

Mr. Hamid said CHRAJ went beyond its mandate to probe the conflict of interest claims by passing comments on the actual bond issue.

“CHRAJ can only make pronouncements on conflict of interest situations and not issues to do with the bond issuance and its ancillary subjects.,” he stated.

CHRAJ, whilst clearing Mr. Ofori-Atta of any conflict of interest claims, said the Finance Minister failed to declare Databank as an asset to the Attorney General.

“We find that it is these extraneous matters which CHRAJ commented on, which have become the ammunition with which the NDC has started a new round of attacks. We hereby serve notice that Ken Ofori-Atta will proceed to the courts immediately to seek to set aside those extraneous matters in the CHRAJ report.”

These extraneous matters have given the opposition National Democratic Congress cause to still attack the Finance Minister, despite him being found not guilty of the conflict of interest charges, according to Mr. Hamid.

The Minority in Parliament on Wednesday called on President Akufo-Addo to sack Mr. Ofori-Atta for breaching aspects of the law in the issuance of the bond.

Alternatively, the Minroity asked the Finance Minister to resign, else they will invoke an article in the constitution to force him to do so.

“We notice that the CHRAJ report, even when it has found that the substantive case brought before it by Brogya Genfi has failed, offers the NDC a leeway to do the kind of mischief that they are doing… CHRAJ’s refusal to call Ken Ofori-Atta to explain this item on his declaration form was a travesty of justice, and fails the test of natural justice,” Mr. Hamid said.

He maintained that, Mr. Ofori-Atta declared Databank as an institution in which he holds shares.

Mr. Ofori-Atta is notably the Co-Founder of Databank Financial Services Limited, and served as its Executive Chairman from 1990 to February 14, 2012.

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 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 also 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.

–

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

The post Ofori-Atta to sue CHRAJ over $2.25bn bond case appeared first on Citi 97.3 FM - Relevant Radio. Always.

Earlier this month, thousands of Ghanaian youth had to apply for only 500 spots in the Ghana Immigration Service recruitment exercise.

[contextly_sidebar id=”kUv5alV9CRBW4g21KhHlJX4gsOCqNFlS”]The group is asking the Commission to among other things, investigate and make pronouncements on the propriety of financial and administrative processes surrounding GIS and other public institutions’ recruitment, relative to the  Public Financial Management Act 2016 (Act 921) and the Financial Administration Regulation 2004 (LI 1802).

Speaking on Eyewitness News, the Communications Director for the Group, Benjamin Alpha, explained that their petition is to also establish a standardized procedure that will guide public sector agencies in future recruitment exercises.

“Public service agencies like the Immigration Service cannot fix fees and collect same without recourse to Parliament, and we want CHRAJ to make a determination on that,” Alpha explained.

The Ghana Immigration Service received about 84,000 applications at the end of its 2017/2018 application process.

The number, which is seen as an exponential increase from previous exercises,  has been explained to be as a result of the worsening unemployment situation in the country.

Many have since described the Immigration Service’s Ghc 50 charge for the sale of e-voucher cards for the online application as unfair, after it emerged that the Service will only recruit 500 out of the total number of applicants to fill the limited available positions.

The Service has however explained that, though restrictions were given in a bid to regulate and limit the numbers, applicants who were not qualified still flouted the rules and purchased the vouchers.

“Inherent in the requirements and processes were restrictions to regulate and limit the number of applicants, such as age, height and even the period for the sale of e-voucher was also limited. Yet we had applicants who did not meet the basic requirements but went ahead to purchase the vouchers.”

Despite these concerns , the Immigration Service assured that “every money collected is well accounted for and will be judiciously used for the intended purpose.

–

By: Marian Ansah/citifmonline.com/Ghana

The post Group petitions CHRAJ to probe GIS over recruitment fee appeared first on Citi 97.3 FM - Relevant Radio. Always.

This comes weeks after CHRAJ cleared the Finance Minister of conflict of interest allegations following a petition forwarded by a known National Democratic Congress (NDC) member, Brogya Genfi.

[contextly_sidebar id=”ouueERM8UAv6gZ69XsaLE8VRgjprejHl”]CHRAJ in its report had stated 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.”

But the Convener for this new group, Edward Tutor, speaking on Eyewitness News 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.

“Yes indeed, it is true that CHRAJ has conducted investigations into the accusations of conflict of interest on the $2.25 billion bond, but when we took a look at the CHRAJ report, one thing we found outstanding was that there seemed to be a dichotomy between the methodology applied by CHRAJ and its final conclusions. And I will give you one typical example. CHRAJ alluded in its report that the Finance Minister did not disclose three companies that he has interest in. These are Data Bank Financial Services, Data Bank Limited and Data Bank Holdings.

“These three companies are in security dealings and for that reason, the Finance Minister finds himself in a potential conflict of interest scenario. However, because the Finance Minister did not benefit directly from the said transaction, it means he is cleared of conflict of interest. We are all aware of Article 284. The Article says that as a public official, you should not even find yourself in a conflict of interest situation in the first place. The framers of the constitution did not say that you should find yourself there but do not benefit. We believe the decision taken by CHRAJ to interpret 284 and based on that interpretation sought to clear the Finance Minister looks a bit dicey …There is therefore the need for the Supreme Court to be invoked to interpret Article 284…This is why we are moving to the Supreme Court,” Mr. Tutor explained.

Mr. Tutor expressed the hope that the suit will bring “clarity and finality” to the matter.

CHRAJ commenced the investigations six months ago after Mr. Genfi, petitioned it in April 2017, 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.”

According to him, 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 one 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 had also been described as “great friends.”

Ofori-Atta breached processes in issuance of $2.25bn bond – CHRAJ

CHRAJ found that the Finance Minister, Ken Ofori-Atta, breached certain processes in the issuance of the government’s $2.25bn bond earlier this year.

CHRAJ, in its investigation of a conflict of interest allegation leveled against Ken Ofori Atta by a known member of the National Democratic Congress (NDC), Brogya Genfi, said although it found no concrete evidence on conflict of interest against the Minister, he [Ken Ofori-Atta] breached several procedures.

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.

–

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

The post Group sues Ofori-Atta, AG, CHRAJ over $2.25 bn bond appeared first on Citi 97.3 FM - Relevant Radio. Always.

CHRAJ, in its 140-page report concluded that although Mr. Ofori-Atta was not guilty of conflict of interest, he breached some processes in the issuance of the bond.

But the law lecturer argues that the Commission erred when it determined differently from the evidence available to it.

His argument was premised on basis that “the findings of CHRAJ points to one direction” while its “decision on the findings points to another direction.”

“Basically, what it means is that, the findings do not support the decision that CHRAJ made. CHRAJ’s findings that the Minister was in a potential conflict of interest situation shouldn’t have ended with a conclusion that the minister was not guilty of a violation of the conflict of interest rule. It should have actually gone ahead to say that potential conflict of interest whether or not, the minister benefited and it’s still conflict of interest.”

The lawyer didn’t understand why the CHRAJ report cleared the Finance Minister despite making contrary findings, adding that Mr. Ofori-Attah had the opportunity to challenge the findings should it have gone against him.

“It is possible that CHRAJ’s findings did not reflect the actual facts, but when that happens there is an opportunity for the Minister to apply to the courts to review the findings of CHRAJ, but so far as these facts are on record, CHRAJ couldn’t have come to the conclusion that the Minister is cleared of these allegations,” Justice Sai added.

CHRAJ report grounds for Ofori-Atta’s removal – Brogya Genfi

In a related development, Yaw Brogya Genfi, the National Democratic Congress [NDC] member who petitioned CHRAJ to investigate the Finance Minister, has said Mr. Ofori-Atta risks being removed from office over the findings made against him in the report.

According to Mr. Genfi, failure to follow statutory procedures in the issuance of the government’s $2.25bn bond could cost the Finance Minister his job.

“..the evidence so far indicts him [Ken Ofori-Atta] of several illegalities which constitutes enough grounds for his removal from office,” he said.

–

By: Godwin A. Allotey & Sixtus Dong Ullo/citifmonline.com/Ghana
Follow @AlloteyGodwin

The post Bond saga: CHRAJ erred in clearing Finance Minister- Law lecturer appeared first on Citi 97.3 FM - Relevant Radio. Always.

He made the comment in reaction to CHRAJ’s release of the report on its investigation of the minister over allegations of conflict of interest in the issuance of the bond.

[contextly_sidebar id=”8Sj8pZnaioH2KoiRDr7a6rPwsEFuSjY1″]Genfi, who petitioned CHRAJ in April 2017 over the allegation said in a statement copied to citifmonline.com that he was studying the 140-page report with his lawyers and will indicate publicly his remarks “in due course”.

CHRAJ, after months of investigation, said Mr. Ofori-Atta breached certain processes in the issuance of the bond, however, it cleared him of all claims of conflict of interest in the issuance of the bond.

“..the evidence so far indicts him [Ken Ofori-Atta] of several illegalities which constitutes enough grounds for his removal from office,” he said.

He further commended CHRAJ for “a meticulous work done.”

We’ve been vindicated – Minority

Meanwhile, the Minority in Parliament believe they have been vindicated CHRAJ’s findings on the matter.

In a statement copied to citifmonline.com, the Minority Leader, Haruna Idrissu, said “the adverse findings contained in the decision of the CHRAJ vindicate our position that the US$ 2.25 Billion bond issuance was fraught with irregularities and did not comply with Ghanaian law.”

The Minority say they will hold a press conference in the coming week on the outcome of CHRAJ’s investigations.

How did this start?

Parliament in June 2017,  summoned the Finance Minister to provide detailed information on the 2.25 billion dollar bond, following a motion filed by the Minority.

Concerns had been raised, particularly by the opposition, in relation to the transparency of the $2.25 billion domestic bond, 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 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.

–

By: Jonas Nyabor/citifmonline.com/Ghana

The post CHRAJ report grounds for Ofori-Atta’s removal – Brogya Genfi appeared first on Citi 97.3 FM - Relevant Radio. Always.

The National Democratic Congress (NDC) MPs say CHRAJ’s revelation that the Minister breached several processes in the issuance of the bond confirms claims of wrongdoing although he was not found guilty of conflict of interest.

[contextly_sidebar id=”ictFsX8Qh9ECtraYLsXyZm7AvrxckxhY”]In a statement copied to citifmonline.com, the Minority Leader, Haruna Idrissu, said “the adverse findings contained in the decision of the CHRAJ vindicate our position that the US$ 2.25 Billion bond issuance was fraught with irregularities and did not comply with Ghanaian law.”

The Minority say they will hold a press conference in the coming week on the outcome of the CHRAJ investigations.

Read the full statement below:

MINORITY STATEMENT ON DAMNING FINDINGS AGAINST FINANCE MINISTER BY CHRAJ IN US$ 2.25 BILLION BOND INVESTIGATION

The Minority Caucus in Parliament has become aware of findings contained in the decision of the Commission on Human Rights and Administrative Justice (CHRAJ) on a complaint filed against the Finance Minister over the infamous US$ 2.25 billion bond in March this year.

Contrary to some publications on a number of online portals to the effect that the Finance Minister has been cleared of wrongdoing, CHRAJ in its decision agrees largely with our stated position from the very beginning that the bond issuance did not follow due process.

CHRAJ in its summary of key findings noted several breaches of statutory regulations governing the issuance of bonds and cited the Minister for conduct bordering on criminality.

It is the considered position of the Minority that the adverse findings contained in the decision of the CHRAJ vindicate our position that the US$ 2.25 Billion bond issuance was fraught with irregularities and did not comply with Ghanaian law.

We will engage the media next week to provide details of our position on the outcome of the investigations and consequential matters.

We wish Ghanaians a happy new year.

Haruna Iddrisu (MP).

Parliament in June 2017 was forced to summon the Finance Minister to provide detailed information on the 2.25 billion dollar bond following a motion filed by the Minority.

Concerns had been raised especially by the Minority about the transparency of the $2.25 billion domestic bond 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.

CHRAJ petitioned

A member of the NDC, Brogya Genfi, in April petitioned CHRAJ to investigate the matter 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.”

CHRAJ, after months of investigation, said Mr. Ofori-Atta breached certain processes in the issuance of the bond, however, it did not find him involved in a conflict of interest position.

–

By: Jonas Nyabor/citifmonline.com/Ghana

The post CHRAJ report on Ofori-Atta vindicates us – Minority appeared first on Citi 97.3 FM - Relevant Radio. Always.

CHRAJ, in its investigation of a conflict of interest allegation leveled against Ken Ofori Atta by a known member of the National Democratic Congress (NDC), Brogya Genfi, said although it found no concrete evidence on conflict of interest against the Minister, he [Ken Ofori-Atta] breached several procedures.

[contextly_sidebar id=”jYXu6hNFlcr4oWKto8Y0iiRIPErtF7km”]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 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.

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

It had found the Primary Dealers also doubled up as Bookrunners/Transaction advisors, and that dual role gave them an undue advantage.

“Respondent [Ken Ofori-Atta] is either a director, former director or shareholder, or beneficial owner, of several companies whose objects relate to the securities market sector. The companies include Databank and EGL. As such, Respondent’s interests in the growth and wellbeing of those companies, have the potential to conflict with the interests of the state in relation to the securities market such as the issuance of bonds.

It stated that, “The Respondent has business partners and associates related to the securities industry where, according to the Respondent, he has been working for over thirty years. These business partners and associates include partners in Databank, Enterprise Group Limited, Ventures and Acquisitions Limited, as well as Keli Gadzekpo, Trevor Trefgarne and Angela Ofori Atta, also Respondent’s spouse.”

CHRAJ further urged the implementation of section 56 of the Public Financial Management Act, 921 of 2016 in the shortest possible time, due to the imperative of Bonds becoming a feature of the country’s debt payment system and the appetite of investors.

It said section 56 (1) provided that, “The terms and conditions of all government borrowing shall be laid before Parliament and shall not come into operation unless the terms and conditions are approved by a resolution of Parliament in accordance with article 181 of the Constitution”.

“The issuance of bonds is a form of borrowing and therefore operationalising section 56 (2) of the PFM Act with standard terms and conditions for government borrowing through a legislative instrument or through a resolution of Parliament to enable greater transparency in all borrowings is long overdue,” CHRAJ stressed.

CHRAJ clears Ofori-Atta of Conflict of Interest in $2.25bn bond saga

On the substantive matter of conflict of interest however, CHRAJ cleared Mr. Ken 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,” it said in its report on the matter.”

Click here to read the full report.

–

By: Jonas Nyabor/citifmonline.com/Ghana

The post Ofori-Atta breached processes in issuance of $2.25bn bond – CHRAJ appeared first on Citi 97.3 FM - Relevant Radio. Always.

“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,” it said in its report on the matter.

[contextly_sidebar id=”VZD0qpdoUnwDcpUxBximlXhw1ZWYJFR3″]CHRAJ commenced the investigations 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.”

According to him, 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 one 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 had also been described as “great friends.”

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

Other Findings

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,” directed that the Minister ensure 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.

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

It urged the implementation of section 56 of the Public Financial Management Act, 921 of 2016 in the shortest possible time due to the imperative of Bonds becoming a feature of the country’s debt payment system and the appetite of investors.

It said section 56 (1) provided that, “The terms and conditions of all government borrowing shall be laid before Parliament and shall not come into operation unless the terms and conditions are approved by a resolution of Parliament in accordance with article 181 of the Constitution”.

“The issuance of bonds is a form of borrowing and therefore operationalising section 56 (2) of the PFM Act with standard terms and conditions for government borrowing through a legislative instrument or through a resolution of Parliament to enable greater transparency in all borrowings is long overdue,” CHRAJ stressed.

Observations

Among the 21-point findings in its decision, CHRAJ observed that Primary Dealers also doubled up as Bookrunners/Transaction advisors and that dual role gave them an undue advantage.

It also observed that the “Respondent is either a director, former director or shareholder, or beneficial owner, of several companies whose objects relate to the securities market sector. The companies include Databank and EGL. As such, Respondent’s interests in the growth and wellbeing of those companies, have the potential to conflict with the interests of the state in relation to the securities market such as the issuance of bonds.

It stated that “The Respondent has business partners and associates related to the securities industry where, according to the Respondent, he has been working for over thirty years. These business partners and associates include partners in Databank, Enterprise Group Limited, Ventures and Acquisitions Limited, as well as Keli Gadzekpo, Trevor Trefgarne and Angela Ofori Atta, also Respondent’s spouse.”

Click here to read the full report. 

–

By: Jonas Nyabor/citifmonline.com/Ghana

The post CHRAJ clears Ofori-Atta of Conflict of Interest in $2.25bn bond saga appeared first on Citi 97.3 FM - Relevant Radio. Always.

In the wake of the establishment of a prima facie case against Mrs. Osei following allegations of corruption and abuse of office leveled against her in two separate petitions, NDC Member of Parliament for Tamale North Constituency, Suhuyini Alhassan, has stated that the governing NPP is on an agenda to dismiss the former.

[contextly_sidebar id=”VfSLdlBrf65oLiCljPbfELnI4cYOGtX2″]“Some people in the opposition, when the woman was appointed, vowed and pledged and said they will move heaven and earth to frustrate her and make sure that she doesn’t work as the Electoral Commission Chair,” Mr. Alhassan had suggested.

The MP could however not mention the name of a single NPP member or official who made that statement or pledge. Some other NDC members have made similar allegations but without proof.

Speaking on Eyewitness News, the Director of Communications at the presidency, Eugene Arhin, dismissed these claims, saying the President has no interest in replacing the EC Chairperson.

“I am really surprised by the kind of posturing being put up by the leaders of the National Democratic Congress (NDC) and Members of Parliament, and I have said this before, and I will say it again that President Nana Addo has no interest or whatsoever in who becomes the Chairperson of the Electoral Commission. It is none of our business. The most important is we have a mandate to deliver on, and that is the mandate of change the people of Ghana voted precisely for, and that is what we are focusing on. Whoever becomes head of Electoral Commission in all honesty we are not really bothered about that. All that matters is that, we move this country forward.”

Some had suggested that the President’s decision to forward the petition to Commission on Human Rights and Administrative Justice, when he could have used his discretion, showed that he was on a deliberate mission to get Mrs. Osei removed.

Mr. Arhin in a sharp rebuttal pooh-poohed these claims, saying the “President had no discretion to exercise” in relation to this petition.

Citing more examples to support his claim, Mr. Arhin sought to find out whether former President John Dramani Mahama exercised his discretion when a petition was filed against the former CHRAJ Commissioner, saying “when a petition was sent to President Mahama with respect to Lauretta Lamptey, did the President have any discretion to exercise? Didn’t he follow the laid down procedures as stipulated by the law.”

According to him, it was impossible for President Nana Addo to simply gloss over the issue when Article 146 (3) of the constitution binds him to adhere strictly to the rules and regulations in cases of this nature.

The Petitions

Some staff of the EC petitioned President Nana Addo Dankwa Akufo-Addo in July 2017, to remove Mrs. Osei from office over allegations of fraud and financial malfeasance as well as abuse of office.

Some of the allegations involved the unilateral award of contracts by the EC boss in the run-up to the 2016 general election.

The unnamed EC staff are being represented by Lawyer Maxwell Opoku-Agyemang, against Mrs. Osei.

The petition against her, alleged among others the funnelling of GH¢3.9 million to partition an office, the receipt of a Toyota Land Cruiser from the Mahama government, and the use of about $14 million when the Public Procurement Authority had authorized her to use only $7.5 million.

Charlotte Osei takes on Deputies

Mrs. Osei also responded by making allegations of corruption against her deputies, claiming that she was only being hounded because she sought to introduce systems to curb misuse and mismanagement of resources.

Charlotte Osei among other claims, accused deputy Chairperson of the Commission of illegally signing contracts worth over GHC 40 million without her approval.

Fresh impeachment against EC Chair

Subsequently, another individual by name Douglas Seidu, a concerned Ghanaian, also petitioned the President in August 2017, seeking the removal of the EC Chair, on grounds of “financial misconduct, incompetence, conflict of interest, breaches of the public procurement processes, amongst others.

It is an eight-paged petition” according to the Director of Communications at the Presidency, Eugene Arhin, who spoke to Citi News in August.

President Akufo-Addo in accordance with the constitution forwarded both petitions to the Chief Justice to look into the matter.

Suggestions are that both petitions have been consolidated to make the committee’s work easier.

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

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