The proceeds of the bond are expected to finance the provision of capital expenditure captured in this year’s (2018) budget for sectors such as the health, roads & highways and railway.

The Finance Minister, Ken Ofori Atta in the 2018 budget presentation stated that the government will raise the amount as it has become necessary to develop the beneficiary sectors.

The IMF in its recent discussions on the government’s performance under the agreement suggested that the government limits its borrowing to 500 million dollars citing rising public debt stock.

However, the Minority Spokesperson on Finance, Cassiel Ato Forson has raised concerns of inconsistencies and wants government to review the plan.

According to him, the government data submitted in the budget goes contrary to the planned use of the proceeds of the bond.

“So they are going to use the money to fund projects that are not in the budget statement and that is serious. For me I believe in fiscal discipline and I cannot be part of this and that is why I said that I cannot witness or see the Minister of Finance to go this tangent; it is a terrible tangent, it is not a tangent that we should allow it to stand,” he argued.

Mr. Forson added, “So I am asking the Finance Minister to amend this document immediately so that he does not go contrary to what is stated in the budget.”

But responding to the concerns of the Minority, a Deputy Information Minister, Kojo Oppong Nkrumah maintains that the government has not flouted any aspects as spelt out in the budget.

“They have gone to one particular part of the budget and are reading the totals and saying that those totals are not equal to the 4.7 billion dollars we are talking about and therefore we will be spending beyond the budget. Take the total appropriation and the uses were outlined in the original budget and highlighted today that we will be using part of the money for road, railway and infrastructure.”

“What we have done today is just requesting Parliament to give us the approval to go to the international market. If we were raising this money locally, we would not have come to Parliament. But because we are going to the international market, that is why we have come to the House for the warrant to do so. In any case Parliament has approved this as part of the economic policy,” Mr. Oppong added.

GH¢500m global depository notes

Meanwhile Parliament has approved the equivalent of a 500 million cedi to be issued as global depository notes.

The notes will allow Ghana to issue shares in a foreign company which will be held by a foreign branch of an international bank.

–

By: Pius Amihere Eduku/citibusinessnews.com/Ghana

The post Parliament approves government’s $2.5 bn Eurobond appeared first on Citi 97.3 FM - Relevant Radio. Always.

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

[contextly_sidebar id=”biYHRXRzAgzkXpSijWgChBZBZMjt51cV”]The caucus, at a news conference addressed by their leader, Haruna Iddrisu, threatened to initiate processes to have the Minister removed from his position through a motion of censure per Article 82 of the constitution.

According to Haruna Iddrisu, the multiple infringements of the law by the Minister in the issuance of the bond as indicated in a report by the Commission on Human Rights and Administrative Justice (CHRAJ), indicated that he acted in bad faith and must not be allowed to remain in office.

“We serve notice that in event that the President, Nana Akufo-Addo does not exercise appropriate judgement, we will initiate an action of censorship 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,” he said.

CHRAJ in December, 2017 cleared Ofori-Atta of the allegations of conflict of interest in the issuance of the bond, but found him guilty of some  infractions in the process.

This followed a petition to the Commission by Brogya Genfi, a known member of the opposition National Democratic Congress [NDC].

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 well-being 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.”

‘Blacklist Databank’

Haruna Iddrisu further urged state institutions to cut ties and discontinue engagement with Databank and Enterprise Group which they say the Finance Minister, Ken Ofori-Atta has interests in.

–

By: Duke Mensah Opoku/citifmonline.com/Ghana

The post Minority pushes for Ofori-Atta’s dismissal over $2.25bn bond appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to him, the Minority’s position on the matter clearly shows that they are uninformed.

[contextly_sidebar id=”OFSOeQcnCKMsYkYPvtkySJ3Q3zuZgSnw”]The Minority in Parliament have accused the government of setting the terms of the bond to favour some friends of the Finance Minister, Ken Ofori Atta.

But in an interview with the Head of Citi Business News Desk, Vivian Kai Lokko in Washington, Dr. Bawumia said the members of the Minority need education on the subject to fully understand it.

“It shows a lack of understanding. The minority have never understood this economy. And it is just amazing that people on that side who were actually in charge of managing the economy will be making such statements. It shows ignorance… and I am so sad when I hear that from people who should know better. They need to understand. Maybe they should read a little,” Dr. Bawumia said.

“This is what politics has been reduced to. Trying to say things which really have no basis and basically wrapped in ignorance.  So I am a bit sad for Ghana and for them, because they are really demonstrating a lot of ignorance in the process of managing this economy,” he added.

–

By: Jonas Nyabor/citifmonline.com/Ghana

The post ‘Minority ignorant about $2.2bn bond; they must read’ – Bawumia appeared first on Citi 97.3 FM - Relevant Radio. Always.