Business Analyst’s Original Letter to The IFC and The World Bank

The Business Analyst’s Original Letter
to The IFC and The World Bank


GHANA GOVERNMENT-KOSMOS ENERGY DEBACLE
… ARE WB/IFC DANCING TO THE TUNE OF RIGHTWING KOSMOS’ LOBBYIST RIVA LEVINSON?

I am concerned about current developments in which the International Finance Corporation (IFC) has singled out relationship between MODEC and Strategic Oil and Gas (StratOil) - a company in which Mr. Tsatsu Tsikata, a former Chief Executive Officer of the Ghana National Petroleum Corporation (GNPC) has a stake - for scrutiny, amidst leaking its business to pro-Kosmos media in Ghana, obviously with intent to creating 'panic and alarm' about threat to first oil time-table.

It is curious that it was this same IFC that refused to come to provide vital information to the courts of Ghana in connection with its dealings in a project it supported in Ghana, when Tsikata was CEO of the national oil company, which was needed to advance the course of justice in the trial of the same Tsatsu Tsikata that they seem to be targeting now on behalf of Kosmos Energy and its rightwing financiers!

I would like to know and communicate to the good people of Ghana, why the IFC would not be interested in investigating the relationship that exists between Kosmos Energy, which it has financed to the tune of $100 million and the E.O. Group, where the latter is beneficiary of 3.5% of the Kosmos deal, estimated to value well over $200million. The government and people of Ghana have just 10%!

For your information, the EO Group was formed by two bosom friends of former President John Kufuor, namely: Kwame Barwuah Edusei and George Owusu, where Edusei was made an ambassador just after the deal was struck. Particularly, where I understand one partner of the EO Group has confessed to fraudulently misrepresenting his partner in the incorporation documentation of the Group as well as other partners in related businesses. (See Kosmos’ Darkest Secrets published by The Enquirer http://www.ghanaweb.com/GhanaHomePage/NewsArchive/artikel.php?ID=175414 for details. Copy also attached).

It becomes obvious that these are intimidatory tactics meant to whip GNPC to reverse its decision declining consent to a sale and purchase agreement (SPA) between Kosmos Energy and ExxonMobil, on the grounds that the two had engaged in a flawed process over which they had previously been notified.

These moves clearly demonstrate arm-twisting, blackmailing and the dirtiest tricks to be employed by any reputable body and if that is how the World Bank and its affiliates operate then I'm sorry I held it in such high esteem.

Clearly as you can imagine from the tone of this piece, I'm highly disappointed at these underhand dealings, which shows your people as Economic Hitmen @ Work! (See also: US Blackmails Ghana Over Kosmos, published by The Public Agenda newspaper in Ghana –
http://www.ghanaweb.com/GhanaHomePage/NewsArchive/artikel.php?ID=182153 Copy also attached.

I and the good people of Ghana want to know if the World Bank and the IFC have become party to this blackmailing process targeting a country that is only trying to enforce its laws work.

A number of us concerned citizens would like to use this opportunity to seek audience with Ghana’s Executive Director at the World Bank to present our disdain about this clear demonstration of double standards by a supposedly reputable institution which was established to seek the interest of the people of the world!

I am forwarding also a clip of a promo on a lobbyist K. Riva Levinson, hired by Kosmos, who describes herself as a "Trouble Maker" for Ghana in the company's dispute with GNPC.

She first lies with an assertion that the government of Ghana had changed the terms of the original petroleum agreement with Kosmos Energy, and states her role specifically as lobbying the IFC and the US Congress among others, to put pressure on the Government of Ghana as a way of getting it to buckle down on its dealings with Kosmos Energy!

I look forward to receiving a prompt response to the queries I have raised above.

J. Ato Kobbie
Managing Editor, The Business Analyst

IFC’s Reply to The Business Analyst
2 August 2010

Mr. J. Ato Kobbie
Managing Editor, The Business Analyst
Accra, Ghana
via email: j.atokobbie@yahoo.com

Dear Mr. Ato Kobbie,

I refer to your letter of 30 July 2010, addressed several World Bank and IFC officials, and published on Peace FM Online on 1 August 2010. IFC has an excellent working relationship with government, business and civil society counterparts in Ghana and is fully committed to helping the Ghanaian people develop their economy. Last year, IFC lent over $300 million to private sector projects in Ghana.

Ghana is developing its offshore oil resources to boost the economy. IFC has helped by providing financing and advice for the development of the Jubilee Field.

In 2009, IFC provided a $100 million loan to Kosmos Energy and $115 million loan to Tullow Oil, two of the partners developing the Jubilee field. IFC’s engagement helps ensure that the project has the proper social and environmental safeguards and management plans and that it promotes governance and revenue transparency in Ghana’s growing oil and gas sector.

A consortium of lenders and investors, including IFC, is currently carrying out due diligence to explore the possibility of financing a floating production storage and off-loading vessel for the Jubilee Field.

IFC is committed to good governance and conducts due diligence on all of its projects on an ongoing basis. Due diligence does not imply wrong-doing but is necessary to ensure projects follow the highest standards.

It is public knowledge that Kosmos is considering selling its stake in the Jubilee Field. IFC believes this is a matter for Kosmos and the Government of Ghana to resolve, and any sale would have to follow Ghanaian law. We hope this issue will not hold up the development of the Jubilee oilfield so that Ghana’s benefits can flow at the earliest possible time.

Sincerely,

Desmond Dodd
Head of Communications
IFC, Sub-Saharan Africa