According to him, the impression created by the Minister of Education Minister, Matthew Opoku Prempeh over the deal was to “paint him [Ernest Aryeetey] black” and a “deliberate effort to tarnish my image.”

[contextly_sidebar id=”SPqow1XzTF1DoZYYqOxE6uc6NsjiUjOb”]The Education Minister had stated that the University of Ghana risk being privatized if it fails to meet its obligations of the $64 million agreement it entered into with a private company, Africa Integras.

The Minister, who said this in an interview with Peace FM’s Kwame Sefa Kayi indicated that the University under the previous government, entered into a Public Private Partnership (PPP) agreement with Africa Integras to invest US$64 million in the construction of 1,000 new students’ hostels for undergraduate and post-graduate students at the Legon campus.

He explained that under the agreement, the University of Ghana is expected to pay a total amount of 10 million dollars to Africa Integras every year for a period of 25 years.

Mr. Prempeh however indicated that the school had in recent times defaulted in the payment – a situation he believes could lead to the school’s assets being seized.

“University of Ghana might be put up for sale because it entered into an agreement and the school is unable to abide by the terms and conditions of the contract. Under this contract, Legon is expected to pay 10 million dollars every year for 25 years. If Legon is unable to settle this loan, its assets will be seized,” said the Minister.

But Prof. Aryeetey in a statement said the Ministers claims are “further from the truth.”

He clarified that the University of Ghana under his leadership did not borrow such an amount.

“The Vice Chancellor of University of Ghana and the Minister of Education of Ghana are trying very hard to make the world believe that I led the University to borrow $64.4 million to build a students hostel. Nothing could be further from the truth. The University of Ghana never borrowed any such money!!!”

Professor Aryeetey said what the Minister failed to understand was that the $64.4 million was borrowed by Africa Integras “to build 5 structures at Legon at a total cost of $64.4 million.”

“Africa Integras borrowed a part of that money from the US government agency, Overseas Private Investment Corporation (OPIC). The rest of the funds came from the private company WP Carey as its equity in the deal. The project was to be undertaken on a ‘Build, Operate and Transfer’ basis.”

“What this meant was that Africa Integras would own the buildings and rent out space in them to Legon. The University was not going to rent simple empty space. The space was going to be fully furnished and equipped for teaching and research purposes. It included modern state of the art and well equipped laboratories for the science units of the university. And all of this was going to be maintained and managed by Africa Integras for 25 years at agreed high standards. This is what the VC and the Minister have deliberately refused to tell the world for reasons best known to them.”

He added that the university undertook a thorough feasibility analysis on the project to ensure that the university was not being shortchanged before it was approved.

He further added that he is convinced that the project was in the best interest of the university.

“l am convinced that the agreement was in the best interest of the University in order to solve its many space and modern technology problems. This is especially so since it provided for discussion and renegotiation at a future date at the request of either party.”

The former Vice Chancellor however accused the current Vice Chancellor of throwing dust in the eyes of the public because he has no interest in the project.

“The agreement provided for various ways in which the University could finance its annual rent payments. Without exploring these financing options, the new University management had concluded that it cannot afford the project. In order to justify the VC’s lack of interest in the project, he has told one lie after the other. Unfortunately people who should be more discerning, have believed him without subjecting the agreement and the processes leading to it, to any proper scrutiny,” he added in the statement.

On claims by the Education Minister that government was not aware of the project, Professor Aryeetey rejected such allegations.

“The Minister also made the point that the Government of Ghana was kept in the dark about the project. This is clearly false and we can easily prove that. I can assure the whole world that nothing illegal, immoral or irregular occurred in the negotiation of this deal. I was never offered any incentive whatsoever by the parties we negotiated with. And I never asked for anything!”

Below is the full statement from Professor Aryeetey:

The Vice Chancellor of University of Ghana and the Minister of Education of Ghana are trying very hard to make the world believe that I led the University to borrow $64.4 million to build a students hostel. Nothing could be further from the truth. The University of Ghana never borrowed any such money!!!

What they have both failed to understand is that the University entered into a concession agreement with Africa Integras, an American company, to build 5 structures at Legon at a total cost of $64.4 million. Africa Integras borrowed a part of that money from the US government agency, Overseas Private Investment Corporation (OPIC). The rest of the funds came from the private company WP Carey as its equity in the deal. The project was to be undertaken on a “Build, Operate and Transfer” basis. What this meant was that Africa Integras would own the buildings and rent out space in them to Legon. The University was not going to rent simple empty space. The space was going to be fully furnished and equipped for teaching and research purposes. It included modern state of the art and well equipped laboratories for the science units of the university. And all of this was going to be maintained and managed by Africa Integras for 25 years at agreed high standards. This is what the VC and the Minister have deliberately refused to tell the world for reasons best known to them.

The University undertook extensive feasibility analysis of the project through its Business School and concluded that using the BOT approach was far better than borrowing directly. The agreement provided for various ways in which the University could finance its annual rent payments. Without exploring these financing options, the new University management had concluded that it cannot afford the project. In order to justify the VC’s lack of interest in the project, he has told one lie after the other. Unfortunately people who should be more discerning, have believed him without subjecting the agreement and the processes leading to it, to any proper scrutiny.

l am convinced that the agreement was in the best interest of the University in order to solve its many space and modern technology problems. This is especially so since it provided for discussion and renegotiation at a future date at the request of either party.

The Minister also made the point that the Government of Ghana was kept in the dark about the project. This is clearly false and we can easily prove that.

I can assure the whole world that nothing illegal, immoral or irregular occurred in the negotiation of this deal. I was never offered any incentive whatsoever by the parties we negotiated with. And I never asked for anything!

I believe that the deliberate effort to tarnish my image is driven by other issues and differences that have nothing to do with this project. Stopping the project, as UG has done, is not only going to deprive Ghanaian students of modern learning facilities, but going to add several millions of dollars to the cost unnecessarily. It is the hope of the Minister of Education and the University Management that when that happens, they can conveniently blame Ernest Aryeetey for it.

I trust fully in the Good Lord to show Ghanaians the truth. I also hope that other persons who know the truth will find the courage to speak out publicly.

Ernest Aryeetey

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By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

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The Deputy Minister had alleged that the former Vice Chancellor and two other persons – former Deputy Health Minister Rojo Mettle Nunoo, and Prof. Aaron Nii Lante Lawson, have registered the University of Ghana Medical Center in their names.

“It will shock Ghanaians to hear that a limited liability company such as the facility has been registered in the names of Rojo Mettle Nunoo, Prof. Ernest Aryeetey and one Prof. Aaron Nii Lante Lawson in their respective names” the deputy minister reportedly said.

[contextly_sidebar id=”SvDUXGcZCF7q0ND3xcxrpePSeMwd3Jwi”]But speaking to Citi News’ Caleb Kudah, the former University of Ghana Vice Chancellor said the Deputy Minister lied.

“Lying to the people of Ghana that the company was registered in my name is unacceptable, it’s completely unacceptable.  It is a lie and he knows it. His Minister made an earlier lie and the fact that they continue with this lie is what annoys me. So you have a deputy minister and a minister of health lying about a public facility, lying about an individual or individuals and yet they perpetuate it. They go all with it hoping to create a bad name for me,” he noted.

Prof. Aryeetey explained that the Deputy Minister’s claim suggests that he is clueless on how companies are registered in the country, adding that the hospital was registered in the name of the University of Ghana.

He explained that when registering companies, there is the need to provide the names of the directors, adding that in this case, he was authorized as Vice Chancellor, while Prof Lawson was authorized as the Project Manager by the University Council to front for the hospital.

Confusion over the Medical centre

The Medical Centre, which cost about $217 million is still not operational, although the phase one has been completed for about a year now.

There is currently a tussle between the Ministry of Health and the University over the rightful managers of the facility.

Whereas the Ministry of Health believes it is the appropriate body to properly manage the facility, authorities at the University think otherwise.

Following the public uproar over the delay in opening the facility, the Ministry of Health further disclosed that it needs about $6 million to make it operational.

Health Ministry can’t claim ownership of Medical Centre

Prof. Ernest Aryeetey in the interview further challenged the Ministry of Health to provide evidence indicating that they must take ownership of the University’s Medical Center.

Prof. Aryeetey insisted that the hospital was never built for the Ministry, and charged the University to rise up and fight for its property.

“It was never built for the Ministry of Health, and I’m challenging the Ministry of Health or anybody with any information that the hospital was built for the Ministry of Health to come out and give us the evidence. The hospital is at Legon because Legon asked for it.”

Clueless Minister

Prof. Aryeetey also lambasted the Minister of Health, Kwaku Agyeman Manu, saying he does not understand his job as the Minister.

“He hasn’t understood it, and because he is adding mischief to his lack of understanding it is leading to this kind of mess we have here. The University needs to stand up and fight for what is rightfully its property,” he added.

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By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

The post Health Ministry peddling ‘lies’ about UG Medical Centre – Prof. Aryeetey appeared first on Citi 97.3 FM - Relevant Radio. Always.

This according to a former Vice Chancellor of the University of Ghana, Professor Ernest Aryeetey, is because the sector has the potential of solving the frightening unemployment rate that has bedeviled the country.

The Ghana Labour Force Survey Report by the Ghana Statistical Service, projected Ghana’s current unemployment rate at 11.9%.

[contextly_sidebar id=”Y8ueytJMigSgyJocOXgcUeBFR6Ymv6nV”]Professor Aryeetey, while speaking on the Citi Breakfast Show on Monday, explained that there would be more job opportunities for most graduates if there is a comprehensive plan to improve the manufacturing sector.

“My view tends to be that, we are interested in employment; you cannot afford to create these jobs by overlooking manufacturing. So I will strongly advocate that we pay attention to the link between agriculture and manufacturing, and of course with services.”

“Manufacturing is one that traditionally has created modern sector employment. Manufacturing is what is going to absorb all the young men and women leaving your polytechnics and universities,” he said, adding that, “If we are not able to create jobs in Ghana today, it’s because our manufacturing has not performed well.”

Ghana not service driven economy

The Professor, who is an economist, further dispelled claims that Ghana is gradually becoming a service driven economy.

“I always argue that, Ghana has not followed the traditional pattern of progression. Traditionally, you would have expected an economy that was dominated by Agriculture to move to manufacturing. That’s what economic history teaches us. As a result of changes in technology available to the world, driven largely by globalization, we’ve made a transition from agriculture into services, but let’s not deceive ourselves into calling the economy of Ghana a service driven economy, it is not. It is only partially so.”

Prof. Aryeetey would today [Monday], launch a book he co-authored with a British trained economist, Ravi Kanbur, titled: “The economy of Ghana; 60 years after independence.”

Ravi Kanbur is a British trained economist and an international professor of applied economics and management.

Click here for the full interview:

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By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

The post Manufacturing sector holds key to job creation – Prof. Aryeetey appeared first on Citi 97.3 FM - Relevant Radio. Always.

He decried the gap in the quality of education at International Schools as compared to public senior high schools, and warned that failure to reverse the trend will spell doom for the country’s human resource.

Speaking on “re-engineering education in Ghana, removing the growing dualism” at the 4th lecture of Achimota Speaks, Prof. Aryeetey called for a Private Public Partnership in the financing High Schools in order to bridge the gap.

[contextly_sidebar id=”DG5kwSHHUuQcQvyyTBNDkoEjWnooqpqI”]“What I want us to do is to bridge the gap and it is possible. I am proposing Private Public Partnership (PPP). If you are bringing an investor to spend millions of dollars it cannot be for free. I have not said I am against free SHS. If you make it free and you don’t make these investments you are wasting your time. That one I can say confidently.”

Prof. Aryeetey is not the first to caution government on the implementation of the Free SHS policy, without the corresponding measures to ensure its sustainability.

The Institute for Fiscal Studies, equally raised similar concerns, saying the policy could have negative implications on education if government fails to identify pragmatic funding sources to sustain it.

The IFS said the fundamentals for achieving the objectives require robust and sustainable funds which have to be considered critically.

In a post analysis of the 2017 budget statement, the Executive Director for the IFS, Professor Newman Kusi, further cautioned that the development may lead to undesirable circumstances that had characterized previous policies.

“If the enrollment numbers increase or double, are we assuming that there are available classrooms to accommodate the children so that we can get quality education. Are we saying that there are enough teaching and learning materials as well as teachers so that we do not continue with the schools under trees phenomenon?” he quizzed.

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

The post Free SHS without investment waste of time – Prof. Aryeetey appeared first on Citi 97.3 FM - Relevant Radio. Always.