In recent publications by some CSOs and social activists, it has been alleged that;

1. ECG in a “sweetheart deal” facilitated the loss of about GHS80million to the State by purchasing USD43m for the payment of IPPs at a rate of GHS 13.95 to the US Dollar in October 2023 at a time when the market rate was below GHS 12.0 to the US Dollar.

2. The decision to engage Fidelity Bank as the single settlement account operator was inspired by conflict of interest on the part of our Board member, Ms. Maataa Opare, who also happens to be the Head of Legal at Fidelity Bank.

We respond as follows;

Forex Sweetheart Deal

1. For the month of October, ECG procured a total amount of USD10.75million through Fidelity Bank at rates varying between 11.825 and 11.965.

2. The circulating cash waterfall spreadsheet that suggests that 43million USD was procured at a rate of 13.95 is a standard estimation sheet and does not represent the actuals.

3. The actual rates at which forex is procured have been duly reported to Government at various presentations. We further advise the quantum and rates for subsequent months below:

Conflict of Interests

4. The banking relations of ECG with Fidelity Bank dates far back to 2012. Fidelity has served as a collection bank for ECG and has been a financing bank for various ECG projects.

5. In 2017, ECG in a consortium with GCB Bank structured and expressed interest in providing the single collection account service for ECG to optimize ECG’s management of collections and vendor payments.

6. Irrespective of the above, Fidelity Bank continued to provide collection services outperforming most of its peers.

7. Fidelity was appointed the operator of the single account in 2023 after the finalization of the Cabinet’s decision to operate such an account. The appointment was based on the merit of the efficiency and responsiveness in ECG’s prior dealings with Fidelity Bank.

8. Ms. Opare in compliance with good governance and the Companies Act, 2019 (ACT 992) duly declared her conflict and recused herself from discussions and decisions relative to Fidelity Bank Ltd. She has in no way influenced this process.

9. We maintain that our decision to appoint Fidelity Bank was purely on merit and the
consideration of it being a local tier one bank.

The Cash Waterfall

The current cash waterfall arrangements are inadequate to sustain ECG’s operations and investment needs, both of which are required to ensure service quality and adequate collections.

ECG is taking steps to rationalize its costs and operations as well as engage key policymakers and stakeholders for an optimal structure that assures sustainability for all.

Conclusion

We do appreciate the relevance of the work of civil society and policy/social activists in the pursuit of Ghana’s development agenda. However, we urge all to be fair and objective in the advocacy to better the discourse, improve cooperation and together realise the impact desired for Ghana. END.

William Boateng
Director/Communications