Article: Isaac Adongo’s “Blood-Sucking Vampires” declare in opposition to Ofori-Atta, Adu-Boahene, and the info

 

The Nationwide Democratic Congress (NDC) member of parliament for the Bolgatanga Central constituency, Isaac Adongo, on twenty eighth Could 2021, took to his Fb wall to accuse the Finance Minister, Ken Ofori-Atta, and the Minister of State-Designate for Finance, Charles Adu Boahen, of battle of curiosity for allegedly appointing two firms they have been founders of, Databank and Black Star Brokerage, respectively, as “two of the three funding advisory companies” for a multi-billion cedi authorities bonds.

In his write up posted at 2:08pm that day, Mr. Adongo claims that “the Ministry of Finance headed by Messers Ken Ofori-Atta and Charles Adu Boahen simply introduced a listing of major sellers and launched a brand new time period referred to as Bond Market Specialists,” and that “the duo, Ken Ofori-Atta and Charles Adu Boahen, have thus actually awarded to themselves by way of their firms the profitable contracts that contain managing Authorities’s borrowing program with an estimated GHS60 billion a 12 months gross financing.”

He went on to calculate that the 2 firms have been to “share the spoils” which he estimated to be as a lot as “GHS210 million a 12 months”. Nevertheless, to generate GHS210 million in charges, at 0.5% (being the going fee) of the worth of complete funds raised, a Bond Market Specialist should promote bonds of not lower than GHS42 billion.

BMSs usually are not concerned in Treasury Payments however the issuance of medium- to long run bonds. The GHS60 billion determine utilized by Mr Adongo is the full gross financing for the 12 months, together with T-bills.

READ ALSO  Afia Schwar threatens to beat Akufo-Addo if he pays ‘grasping’ MenzGold prospects

Financial institution of Ghana Knowledge

Nevertheless, data out there from the Bank of Ghana point out that the collection of the guide runners for this 12 months’s bond, undertaken by the central financial institution, have been open and clear and primarily based solely on benefit.

Databank and Black Star Brokerage are simply two out of 9 companies which were chosen by BoG/MoF as Bond Market Specialists (BMSs) and never Advisors to the Ministry. The opposite companies chosen to be BMSs are Stanbic Financial institution, Entry Financial institution, Ecobank, GCB Financial institution, Cal Financial institution, Consolidated Financial institution and IC Securities.

The collection of the Main Sellers (PDs) and Bond Market Specialists (BMSs) is an automated course of primarily based on market efficiency and historic secondary market buying and selling exercise which is publicly out there and, due to this fact, not susceptible to manipulation.

Since 1996, the Ministry of Finance with the Financial institution of Ghana has developed and applied numerous insurance policies which have an effect on the issuance and buying and selling of Authorities of Ghana debt securities (Treasuries and Bonds).

The final word targets of those insurance policies are to develop an environment friendly fastened earnings market, strengthen the capability of native establishments and deepen monetary intermediation.

Main Sellers (PDs) are establishments licensed by the Financial institution of Ghana and have the unique proper to take part within the wholesale auctions of Treasury Payments. Bond Market Specialists (BMS), however, are PDs which have the unique proper to take part within the sale, distribution and first issuance, by public sale or in any other case, of all Authorities of Ghana (GoG) Treasury payments, notes and bonds.

READ ALSO  International financial progress to masks widening inequality in 2021, says UN

Number of PDs and BMSs

The choice course of for companies to behave as PDs and BMSs relies on benefit, with out the involvement of the Ministry of Finance or the Minister and/or his Deputies.

This choice course of is designed to reward meritocracy, guaranteeing transparency within the choice course of and supplies the Finance Ministry with a collection of extremely succesful bookrunners. The choice can be executed based on the worth of every agency’s secondary fastened earnings market buying and selling exercise as captured overtly on the inventory alternate.

Moreover, BMSs are paid primarily based on efficiency, they’re paid a proportion (this was 0.5% previously) of the worth of complete funds every of them manages to boost or primarily based on the worth of the bonds they every handle to promote to buyers. Which means their compensation relies on their capacity to persuade buyers to purchase GoG bonds.

Whereas the MP for Bolgatanga is just not insisting that Ken Ofori-Atta and Charles Adu Boahen are concerned in any method with the each day operations of both Databank or Black Star, he cites their roles as founders or shareholders to help his allegations.

Mr. Adu Boahen resigned from the Board and administration of Black Star again in Jan, 2017 instantly after he was nominated by the President as one among his Deputy Ministers for Finance. He additionally transferred his shares within the firm to a household belief managed by his brother on the time. Mr. Ofori-Atta resigned as Government Chair of Databank in August 2012 and resigned from all of the Databank Boards in February 2014.

READ ALSO  Angel FM’s Common Supervisor Kwadwo Dickson confirms Captain Sensible’s suspension

Mr. Adongo additionally accuses the 2 males of freckles borrowing for private achieve. Nevertheless, any borrowing by the finance ministry is decided by the deficit goal for the 12 months as permitted by Parliament, the Appropriation Invoice and maturities of funds borrowed in the course of the 12 months.

He locations Ghana’s complete borrowing over the past 4 years at GHS250 billion. That is, nonetheless, not correct. Obtainable figures present that the nominal debt inventory has elevated from GHS122.17 billion in 2016 to GHS291.61 billion in 2020.

A part of the borrowing has been to refinance current debt inventory, which doesn’t add to the debt inventory. Additionally, other than issuance of bonds itself, components influencing the nominal debt enhance embrace forex depreciation, programme loans contracted however not disbursed, concessional loans, industrial loans and different financings which brokers comparable to Databank are by no means concerned in it.

However, the opposition MP calculated the determine of GHS875 million as the full quantity paid in charges over the past 4 years. It seems he arrived on the determine by merely multiplying the unsuitable collected determine of GHS250 billion by 0.35% and bought GHS875 million.

Asaase Radio 99.5 – tune in or go browsing to broadcasts online
Comply with us on Twitter: @asaaseradio995
#AsaaseRadio
#TheVoiceofOurLand

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button