The Minority in Parliament on Tuesday called for a full-scale parliamentary inquiry into the recent US$2.25 billion bond issued by the NPP government.
According to them the transaction lacked transparency and had the potential of adversely affecting the welfare of the people of Ghana.
Mr Cassiel Ato Forson, the Minority Spokesperson on Finance made the call at a Press conference organised by the group in reaction to Vice President Dr Mahamudu Bawumia’s assessment of President Nana Akuffo Addo first hundred days in office.
According to him, the NPP in 2015 criticised the NDC heavily for borrowing US$1 billion Eurobond at a coupon rate of 10.75 percent for 15 years (with World Bank Guarantee) to replace a portion of the 2007 Sovereign bond and some domestic bonds.
The Ministry of Finance recently issued a statement announcing that the government had successfully issued 15 and 7 year bonds with the same coupon rate of 19.75 percent, raising a total amount of US$1.13 billion.
In addition, the Ministry of Finance raised the cedi equivalent of US$1.12billion in five and 10 year bonds through a tap arrangement.
Mr Forson also warned that if the government failed to setup the Parliamentary inquiry into the matter, the group would have no option but resort to using the conflict of interest jurisdiction of the Commission on Human Right and Administrative Justice (CHRAJ).
He said minority would exercise the option of filing a petition with the Financial Services Authority of the U.S.A to investigate Franklyn Templeton.
He said the minority had also pointed that the bond issue was clearly an international business transaction within the meaning of article 181 (5) of the Constitution and therefore expected that bond issuance would have been brought to Parliament for approval.
Mr Forson also stated that potential conflict of interest situation had arisen as a result of the relationship between Ken Ofori-Atta, the Finance Minister, who doubles as Director of Enterprise Insurance and Trevor G. Trefgame, a Board Director of Franklyn Templeton Limited and Chairman of Enterprise Group Limited.
He said the Franklyn Templeton Investment Limited recently participated in the purchase of almost 95 percent of the Government Domestic Bond, which the minority suspected was issued to favour his business partners.
He stated that the whole bond transaction was shrouded in secrecy to the extent that Ghanaian investors were denied the opportunity to participate in the deal. The bond was virtually participated by only two investors.
Mr Forson further questioned why a single investor, Franklyn Templeton, which is a non-resident investor that patronised both Domestic and Sovereign Bonds in the past, was allowed to purchase almost 95 percent of the latest Government Domestic Bond. The size of this virtual “private placement” made it akin to a sovereign bond or foreign loan.
He stated that Government Domestic Bond had a “Hybrid” (cedi/foreign) feature and therefore when non-resident investors bring in foreign currency at the time of purchase, they hold the equivalent cedi bond in the same implicit foreign currency.
He stated that in the past the “book building” approach for issuance of bonds the process was opened for a minimum of three days to ensure optional participation.
“However, in the case of the US$2.25 billion bond issue, the process was limited to one day, denying other market players the opportunity to participate in the process.”
Source: GNA
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Look at Ato Forson and his lazy counterparts. You just want to be heard that's all. Where were you when Asiedu Nketia served as a board chairman of Bui Dam Project and at the same time was giving the sole prerogative to supply blocks to the project. Momma y3n dwene wae
What did you understand? Or you are commenting because people are doing that.
Eii!! This polytechnic accountant!
My advice to Ato Forson is simple. Fantis have been abused by NDC for too long. For instance Arkaah is late, Ata Mills is late and they are all Fantis. Why is it difficult for Fantis to rationalize their actions instead of allowing these cabal of crooks in NDC to exploit them everytime. See, your arguement makes little or no common sense and so you should have thought about it before going public with such ***barred word*** comments.
OH NO !!!! NOT ATO FORSON AGAIN !!!!!!!;does this full understand the economic rational behind such deal besides dealing with one financial investor makes sense why do you want to deal with different investors when all they do is gang up against you and dictate their coupon price ;Franklyn Templeton have been the local bond market in Ghana for years besides Ofori -Atta has done business with them for years and have build up soome financial confidence with them besides there are two sides to this deal the local deal element and the foreign element ;the local element is simple Enterprise is a local Insurance company with tons of cedis to invest and Templton has the foreign element ; raising over $2.5 bn will help the government retire most the debts and clean the slate clean and start afresh ; now did the NDC bring any of their international bond issues to parliament besides what evidence have they got to say there is a conflict of interest and if so what is the evidence ; now as to the issue of this local bond issue what the idiotic illiterate fante full should understand is that this was funds generated locally in cedis and not external expensive bands by overseas bankers including JP Morgan ; Goldman Sach ; Barclays Bank and Deutse Bank ; the qusetion to Ato Forso is what is economic rational to out and borrow hard cash dollars from the internation markets ehen we have local currencies which can be used for the same budget expenditure ; why do you want overseas bankers to make huge sums of profits backed by printed American dollars; British Pounds ; German Mark and Japanese YEN which all their bankers can print in the out as part of their external currency traffic and has little effect on the their economies -ATo Forson THINK !!!!!!!because these debts are not even recorded as part of the deficit in these economies because these currencies are convertible currencies; the deal with Templton is not a foreign loan ; it will be paid in local cedis and not foreign currencies besides if there is an improvement in the local currencies then the rate of the currecy will affect the currency at the time of payment depending on the terms and condition of the bond ;
This is a clear case conflict of interest. Most importantly create, loot and share has raise its ***barred word*** head again. And it is in its worst form.
Eiiiiii, Look who is talking!!!