Dr. Bawumia defends GT sale
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The New Patriotic Party running mate, Dr. Mohamudu Bawumia, has stated categorically that the sale of 70% shares of government stake in Ghana Telecom to Vodafone was a good decision the government took.
He told the host of Joy FM’s current affairs programme, Front Page, Kweku Sekyi-Addo that there was no way GT was going to survive in the telecommunications industry in the midst of stiff competition which virtually “grounded†it.
“I see the partnership with Vodafone as one that would enhance the government investment in the country, enhance telecommunications industry in this country and enhance our inter-connectedness with the global ICT network that exist in this economy.â€
Dr. Bawumia reminded both critics and supporters of the deal that under the ill resourced state of GT, “it is very important to know that you can own 70-100% of nothing or 30% of a very big pieâ€.
He was excited that agreement on the transaction was finally reached in a “transparent†manner.
Being a board member of GT, Dr. Bawumia said the partnership with Vodafone was “not only about getting money, but it was about a reputation.â€
He was upbeat about the performance of Vodafone; and with a “very strong financial muscle†on the international scene, “they will help provide more competition in terms of domestic communications sectorâ€.
The Deputy Governor of Bank of Ghana said government could also channel resources that might have gone into GT to reduce government expenditure on education, health and other development infrastructure.
He said the way and manner workers at GT supported the deal indicated that the company needed some sort of injection in its investment drive.
On August 15, 2008, Vodafone International Holdings Company BV of the United Kingdom made a payment of $900 million to the Government of Ghana to cover the cost of the 70 per cent Ghana Telecom shares the company purchased.
This was done barely 24 hours after Parliament, following a heated debate, had voted in favour of the sale.
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Bawumia as a board member did nothing to salvage the bad fortunes of GT till it was decided that selling it would be the best option. This may mean that Bawumia cannot steer the affairs of Ghana which is bigger than GT. I am suprised he praised its sale as being the best thing to do under the circumstances.