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This post is tagged with: Ghana Telecom • Vodafone PLC UK

On July 28th, Mr Kwame Pianim, a Ghanaian economist that I had much respect for, said in an interview with the Daily Graphic that Ghana’s economy needed a $130 million injection to stay healthy and that the $900 million expected from the sale of 70 per cent of GT shares to Vodafone could provide that critical support, strengthen the macro economy and control inflation.

He went on further to say that, “If we do not get the money from Vodafone, inflation will go up, which will greatly affect the poor”. This was in apparent support of the fraudulent sale of GT, which has been spearheaded by the Minister of Finance and some inner core of Kufuor’s government.

If Mr Kwame Pianim’s position is really the truth, and as such something to go by, and assuming Vodafone is the only company to help with this exercise, why would we be chasing $900 million representing a 70% giveaway of GT, which is more than a majority stake of a priced and strategic national asset?

Following Mr Kwame Pianim’s position, I will submit that, if this arrangement should be followed through at all, based on the secretive nature of the negotiations, we should just offer Vodafone 30% of the stakes in GT, which makes available to us about $385 million, an amount that is almost three times what Mr. Pianim claims we need. Thus preserving control of Ghana Telecom to the real owners – Ghanaians.

What happened to total cost recovery, and why should it not apply in the sale of GT? Or is total cost recovery only applicable when dealing with Ghanaians only, while foreigners and foreign entities rape our economy as and when they please?

On the same day, Communications Minister, Dr. Benjamin Aggrey Ntim, at a meet-the-press encounter, explained that presently, it is the only way out to salvage the ailing national asset. He asserted that, the sale will help resuscitate the company, but did not mention any reason for supporting the sale that could be analysed critically.

There were no numbers, obviously because he felt ambushed by the journalists that were “hounding” him, making sure he does not just throw anything out that will be used as a noose to hang him later. In fact, the Minister of Communications came across like he knew nothing about what was going on but was forced to defend it for the sake of camaraderie – he obviously does not believe in the sale of GT, so he has not convinced himself well enough to convince anyone else, including the journalists.

On August 4, the Minister of Finance, Kwadwo Baah Wiredu, whose nephew is rumoured to be a beneficiary, should this GT-Vodafone deal go through, was captured on radio telling the same Daily Graphic that, the company (Ghana Telecom), “which he described as strategic, had only $167 million in its accounts, and therefore, an additional $199 million was needed to cater for equipment, advertisements, stationery, fuel, as well as salaries and pensions of its workers”.

Again, if all we need is $199 million, why are we selling out GT for $900 million, representing 70%, rather than $ 385 million, which is 30%. If Mr. Baah-Wiredu really believes that the company is of strategic importance to the country, and as such must be sustained and retained in Ghanaian hands, why then is he pushing for it to be given away in such reckless manner. Is it to cover up the mess that he and his clique have caused at GT?

What is even more annoying to me, is the fact that the Minister was reported to have thrown down the gauntlet – daring the millions of people against the sale of the strategic national asset that predates his school days, to come up with an alternative to salvaging the company.

What the Minister refuses to have us debate, is the financial and operational health of GT and how we arrived there, how the 70% giveaway was decided upon and by whom, and what sureties there are, that Vodafone will develop our Telecommunications infrastructure in line with the promises made. These remain promises and do not form part of the final agreement parliament is to ‘rubber-stamp’.

Even if the amounts quoted by the Minister and the economist were for different programmes, the total for both – which is $330million, could still be accommodated within the $385 million that a 30% stake will net the country

That said, the onus lies on the proponents of the sale of GT, especially the Ministers – Baah-Wiredu and Aggrey Ntim to justify the sale using facts and figures as well as prove to Ghanaians that there are no special interest groups involved. Let us subject the “secret contract” to a thorough, dispassionate and commonsense debate, before the NPP tries to bully yet another fraudulent legislation through parliament.

The truth is, if Areeba, now MTN, was valued at $5 billion, why will GT, including all its subsidiaries – be valued at $ 900 million. We are being hoaxed, and we know it.

It is becoming increasingly difficult to believe the real intentions of the people behind this shady deal. The lies are inconsistent, the reasons untenable, and the numbers do not add up.

The most prudent thing to do, is to annul this contract, unless of course there is a clique within this government that see things beneficial only when they are making money at the expense of the state.

I pray, that parliament throws out that agreement; because it is not worth the paper it was written on. In fact, it will be fraudulent for parliament to be convened, let alone consider this fraud that a few “greedy bunch” want to push through for their own benefit.

The NPP government had previously tried to sell off, rather than seek strategic partners for the Tema Oil Refinery (TOR), Agricultural Development Bank (ADB) and Ghana Commercial Bank (GCB) all these are national assets. They only backed out after intense pressure from civil society organisations.

In my next article – I will be writing on how to sell stakes in GT within a transparent and diligent framework that will be beneficial to Ghana, leaving the strategic interest intact.

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