{"id":369564,"date":"2017-11-08T15:34:29","date_gmt":"2017-11-08T15:34:29","guid":{"rendered":"http:\/\/citifmonline.com\/?p=369564"},"modified":"2017-11-08T15:34:29","modified_gmt":"2017-11-08T15:34:29","slug":"minority-chases-ofori-atta-over-energy-bond-embarrassment","status":"publish","type":"post","link":"https:\/\/citifmonline.com\/2017\/11\/minority-chases-ofori-atta-over-energy-bond-embarrassment\/","title":{"rendered":"Minority chases Ofori-Atta over Energy bond ’embarrassment’"},"content":{"rendered":"
The National Democratic Congress (NDC) Minority in Parliament, has accused the government of causing financial loss to the state with the recent issuance of the Energy Sector Bond.<\/p>\n
According to the minority, the below GHc 6 billion yield of the bond is a solid basis for the Finance Minister, Ken Ofori-Atta, to be hauled before the House to explain why investment advice from places such as the IMF among others was\u00a0ignored.<\/p>\n
[contextly_sidebar id=”99awLNMOC4C8XY2yuBSGbka4X2Qe33mB”]Addressing the press in Parliament, Minority Spokesperson on Finance, Cassiel Ato Forson, said the complex structure of the bond and unrealistic assumptions by the government caused what the Minority called the spectacular failure of the bond.<\/p>\n
“The simple point is that, instead of them issuing a bond called plain vanilla, they decided to use this complex structure that has cost the taxpayer some 200 basis points,\u201d Mr. Ato Forson stated.<\/p>\n
The 200 basis marks about 2 percent of the GHc 6 billion sought, amounting to about GHc1.2 million, which he noted \u201ccan help the government to finance the Free SHS that they are struggling to settle.<\/p>\n
The bond is unrated, per a prospectus issued in October, but an independent special purpose vehicle sponsored by Ghana had the bond hovering around a B-stable rating, according to Fitch, among others.<\/p>\n
Mr. Ato Forson insisted that, the government could have saved the aforementioned 200 basis points \u201cif they had gone to the financial market on the strength of government of Ghana ratings, rather than the ESLA PLC which is unrated and unknown.\u201d<\/p>\n