The Minority in Parliament has accused the Nana Addo led government of blowing GHc177 million on processes that preceded the issuance of the energy sector bond.
Former Deputy Finance Minister under erstwhile Mahama led administration and Minority’s spokesperson on Finance, Cassiel Ato Forso, said government spent GHc87 million on administrative expenses, as well as GHc400, 000 on the printing of material for the energy bond roadshow.
He has therefore called for a parliamentary probe into the matter.
Speaking to the press at a press conference today [Thursday], the elegislator said “From the cost that I have that the taxpayer is paying; the state is paying the arrangers, the banks, GHc87.5 million. The state is paying legal fees of GHc700, 000; the state is paying the accountant, GHc350,000. Surprisingly, the state is paying administrative expenses of GHc80 million. Overall the state is paying GHc177 million. I think this amount is way too much.” Mr. Ato Forson argued that, when the $1 billion Eurobond was issued under John Mahama’s administration, the amount spent was way lower than what the current administration is spending.
“This is not the first time the state is raising a bond. The last bond we raised under the Eurobond of $1 billion which translates to about GHc4.4 billion, the total cost was under 0.2 percent. Today, we are seeing a bond that we are raising for about 4 billion and the cost is about 1.77 percent.
He added: “I think it is important that we ask questions. So the question we are asking is that we want the Ministry of Finance to provide the state with further and better particulars. We are asking for full breakdown of what constituted the administrative expenses. Printing of the road show material was GHc400, 000. We are going to haul the Minister before Parliament, to give us full breakdown to account for every cedi that has been spent so far. We think it is way too much and we smell something fishy.’’
Government issued a ten year and seven year bond with the aim of getting GHc6 billion to offset the legacy debts of the energy sector which was about GHc10 billion, but in all, a total of GHc4.69 billion was realized even after a seven day extension period.
The 7-year component raked in 2.4 billion cedis as targeted, at an interest rate of 19 percent.
However, the 10-year bond failed to hit the 3.6 billion cedis mark.