The Ministry of Finance has formally reacted to claims that Databank - a company founded partly by Finance Minister Ken Ofori Atta - was acting as transaction advisors to government's activity on the capital markets.
A Ministry statement dated June 1, 2021 clarified that contrary to reports that
Databank and Black Star brokerage - a company founded by a former deputy
Finance Minister, Charles Adu Boahen - were handpicked to work on Eurobond
issuances; the two companies and others associated with the bond floatation
were picked on merit.
Databank, Black Star Brokerage and seven other companies are players in the
second-tier of the Eurobond issuance business and are known as Bond Market
Specialists whereas the main companies are referred to as 'Primary Dealers.'
“The selection of the Primary Dealers [PDs] and Bond Market Specialists [BMSs]
is an automatic process based on market performance and historical secondary
market trading activity which is publicly available and cannot be manipulated
by the Ministry of Finance [MoF] or the Bank of Ghana [BoG]”.
“Since 1996, the Ministry of Finance with the Bank of Ghana has developed and
implemented various policies which affect the issuance and trading of
Government of Ghana debt securities (Treasuries and Bonds).
"The ultimate objectives of these policies are to develop an efficient
fixed income market, strengthen the capacity of local institutions and deepen
financial intermediation”, the statement added.
Among other clarifications, the statement also explained why conflict of
interest situations do not arise despite known links of the Finance Minister
and Charles Adu-Boahen to Databank and Black Star Brokerage respectively.
It explained that both men are no longer serving in any active capacity with
the two firms, Ofori-Atta resigned as far back as 2014 and has transferred all
his interests to a holding company whiles Adu-Boahen also left all interests
after his appointment in 2017.
Recent critique of Ofori-Atta and Databank's alleged 'Eurobond gains'
Veteran broadcaster, Kwasi Kyei Darkwah, known as KKD, is the latest critic of
Ken Ofori-Atta's alleged conflict of interest position in government's Eurobond
transactions.
According to him, the minister is benefiting at the expense of the country.
“I read a report yesterday that broke my heart, I saw how much Ghana owes but I
also found that apparently, the minister of finance’s company or former company
is a transaction advisor to the monies that we borrow. So as Ghana gets poorer,
the minister of finance’s company or former company gets richer,” he stated
when he appeared as a guest on GTV’s Breakfast Show programme.
Describing the situation as unacceptable, KKD accused parliament of also
failing to defend the interest of the country by allowing such a practice to
fester.
“Is this how we want to continue in this country? Do we want to elect people
into office, give them their pay and their perks and then allow them and their
friends and their companies or their former companies to be the very
beneficiaries of the woes of our country?
"This is not only about the finance minister of finance; this is about
parliament. Parliament, you must be ashamed of yourself.
"You have failed the people of Ghana because I don’t think from the time of
Nkrumah to date, whoever is the minister for finance should be benefiting every
time our country goes to borrow money. Is that what happened?’’ he questioned.
He further bemoaned how Ghanaians including parliament have rather become
comfortable with the situation.
“And parliament thinks it is okay? So whoever wins the next election will also
set up their own companies and be the transactional advisors when we go and
take a loan. What is wrong with us as a people?. So the person’s motive for
even going for a loan for me now is not clear because every time we take a loan
their company makes money. Does this make sense to us as a people?
“Look we have leaders of the industry, some who have been deprived of their
finances and in the meantime, the people who are sitting in power are stealing
us blind and all people can tell me is oh this is general knowledge,” he fumed.
Source: Ghanaweb