Finance minister replies minority

Minister of Finance and Economic Planning, Mr. Ken Ofori-Atta, has rubbished the Minority caucus in Parliament’s allegation that the finance ministry did not follow due process in the issuance of the $2.25 billion bond.

According to Mr. Ofori-Atta, there were no breaches of integrity, either on government’s part or the Joint Book Runners (JBRs) part.

The finance minister made this assertion when answering a half-hour motion moved by the Minority Leader, Mr. Haruna Iddrisu, which demanded an explanation on the controversial $2.25billion bond issued in March 2017 on the floor of the August House yesterday.

He opined that the apparent attempt to manufacture some form of integrity deficit in the process by the minority was borne out of lack of understanding of the actual process on their part.

“Mr Speaker, that may be deemed too charitable, considering the CVs of some of the personalities involved,” he reiterated.

The finance minister stated categorically that his outfit issued two new bonds and reopened two others.

All these bonds, he explained, were domestic Ghana Cedis bonds in the aggregate amount of GHC9.7 billion and they were as such settled in Cedis.

“Ghana’s Cedis-denominated government bonds include a debut 15-year bond that raised 3.42 billion Cedis ($790 million) at a 19.75 per cent yield”, he disclosed.

The finance minister also dismissed claims the bond was issued in secrecy, insisting all partners including the book runners – Barclays, Stanbic Bank and SAS – managed the process.

These book runners, he maintained, were engaged by the previous government for similar bond issues.

Mr. Ofori-Atta again refuted claims of impropriety anchored on the fact that a foreign firm, Franklyn Templeton, alone took up 95 percent of the bond.

He maintained that 90% of a 10-year bond issued in November 2016 by the previous government was taken up by foreign firms and that the transaction under him was no different.

He said there was no doubt that the current managers of the economy have a wide network of friends and institutions across the world, saying this network will be explored for the benefit of the economy without fear or favour.