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Business News of Saturday, 25 April 2009

Source: By Solomon Davids Daily Democrat

Vodafone Disrespects Presidency Uses Vice President For Endorsement Agenda

Vodafone Plc, formerly Ghana Telecom (GT), appears to be going through some problems with their legitimacy in Ghana, following the circumstances under which the only state owned telecommunications organization was sold. Having managed to get a deal that was hurriedly approved by the then New Patriotic Party (NPP) government; Vodafone's fate hangs in the balance pending any decision by the Government, which opposed the deal from the word, go.

After holding a mammoth change-over launching ceremony in Accra, Vodafone has decided to use the presence of no mean a person than the Vice President who grace the ceremony to create the impression that all is well with them as far as the current government's decision on the privatization of GT is concerned. In an apparent pursuit of that motive, the company has started a series of advertisements in the national daily, The Daily Graphic, depicting the participation of Vice President John Mahama in the activities of the launch as blanket endorsement of Vodafone's take-over by the government.

 By inference, the unsuspecting general public is being hoodwink to believe that the Government of President Mills has reneged on its earlier stance of opposition to the 'foreignisation' of GT to former colonial business concerns.

The adverts, placed on Monday, 20th and Tuesday 21st April editions of the paper, cover two pages and show Mr. Mahama, together with Minister for Communications, Haruna Iddrisu, playing various roles at the ceremony. The first advert was first seen as a sponsored photo story by the daily; but, the subsequent publication pointed to a deliberate use of the image and office of the Vice President to promote the company's agenda, in the face of criticisms from a section of the Ghanaian populace over the involvement of the two personalities in the activities of an organization, whose purchase of 70% stake in GT was opposed by the NDC.

The NDC, led by the then Minority Ranking Member for Communications, Mr. Haruna Iddrisu, made it clear in opposition that they would review the deal that saw Vodafone Plc buying 70% shares of Ghana Telecom on a 'dongomi' price of $900 Million, when they come to power.

The deal was rushed to Parliament and passed with a vote of 124 to 74 in favour of the NPP's majority, without recourse to the cry of the people for a thorough due diligence.

The involvement of Vice President Mahama and Mr. Haruna Iddrisu in the launching of the change-over from Ghana Telecom (GT) to Vodafone has come under sharp criticism from a section of the Ghanaian populace, who believe the sudden turn of events smacks of lack of principles; some are even suspecting under-hand dealings, considering the fact that Mr. Iddrisu was the same person who led the protest against the deal.

 Majority of Ghanaians expected the duo to learn from the principled behavior of their predecessor (NPP) reversed the 30% sale of GT to Malaysians even though that deal was far more beneficial to the people of Ghana because the technological transfer component of the contract.

They subsequently signed a management contract with Telenor of Norway; in that agreement the Norwegians did not contribute a penny to the recapitalization of GT. However, they ended up milking the resources of GT with a monthly salary of $20,000.

Early this week, THE DAILY DEMOCRAT carried a story with a banner headline NDC BOWS TO VODAFONE? About concerns expressed by Ghanaians in relation to government's silence over Vodafone deal.Below is the story.

There is growing suspicion among a section Of the Ghanaian populace in the wake of the official launch of the change-over of Ghana Telecom (GT) to Vodafone last week.

The suspicion is fuelled by the apparent silence of the Minister of Communication, Mr Haruna Iddrisu, over the sale of 70% of the shares in the GT to Vodafone last year.

Mr. Iddrisu, who led the then opposition National Democratic Congress (NDC) to vehemently protest against the deal, has all of a sudden become dead silent on the issue and further went on to join Vodafone at the launch.

Some members of the public have begun suspecting under-hand dealings behind the sudden change of stance by the vociferous Minister, who made a mark in opposition as a staunch defender of the interests of the down-trodden.

Mr. Iddrisu, Minority Spokesman on Communications at the time, spearheaded a protest vote when the deal was hurriedly brought before Parliament for approval, vowing to call for a review of the agreement between the Government of Ghana and Vodafone.

He argued that the shares were worth more than the $900 million agreed upon; stating that nothing less than $1.5 billion was acceptable.

Months into the Mills administration, the issue seems to have been relegated to the background and more so, the Minister has publicly joined in its inauguration, thereby angering some Ghanaians who believe principles need not change under any circumstances.

Some Ghanaians have been pouring their anger at the turn of events, recalling that the New Patriotic Party (NPP) kept to many of their strong decisions about the NDC.

Recounting some of the decisions, some of them said the then President Kufuor never used the Presidential Jet that was purchased by ex-President Rawlings. He also did not allow the sale of 30% shares of GT to the Malaysians to continue. The NPP brought in Telenor of Norway to run the company under a management agreement that did not oblige the Norwegians to put in a penny into the coffers of GT. That deal failed to rescue the only state-owned communication company, necessitating a new agreement that was fast-tracked under very suspicious circumstances.

In a statement read by Mr. Iddrisu last year, the then Minority said, we are raising the concern (over the sale) because of the mysterious shareholding matter in relation to Vodafone Plc acquisition of Safaricom, Kenya's largest and most profitable company.

Safaricom was officially declared to be a partnership between the National landline operator-Telkom Kenya (with 60%) and Vodafone Plc UK (with 40%). I was found to have a third shareholder through an unregistered company known as Mobitelea, which owed 5% of the shares, triggering a parliamentary inquiry into the ownership changes. Mobitelea had not previously been disclosed as a shareholder in the deal.

The NDC therefore asked the NPP not to conclude the transaction without Parliamentary approval. It was based on that statement that the former voted against the parliamentary approval of the deal but lost by 74 to 124. Some Ghanaians are at a loss as to what Mr. Iddrisu implies by assisting in the launch of a deal he protested vehemently, without any sign of displeasure.

'If they have changed their minds about the issue, they should let us know so that we know who they are,' an angry man said. Â