Investigations undertaken by The Statesman indicate that million of US dollars were paid by the previous government to a number of international consultants, leading to the 30% sale of Ghana Telecom (GT) to G-Com, a consortium led by Telekom Malaysia ™ in 1997.
One such was Credit Suisse First Boston Corporation of New York, which, alongside its local associate Ecobank, served as transaction advisors for the privatisation of the then 100% State-owned GT. Figures available to The Statesman show that two invoices were issued by CS First Boston, one dated 20th December 1996 for ‘variable success fee’ of $1,443,150 and another for services rendered, including ‘fixed success fee’ for Ghana Telecom and a Second Network Operator (namely Westel) for $1,599,460.14.
The second payment included $60,421.77 for travel and transportation, $23,259.42 for word procession, publishing, graphics, courier service and on-line services and $777.38 for employee meals.
Telecom sources told The Statesman that the CS First Boston deal was “the most competitive out of about 10 or so international firms who were evaluated”. A source reasoned that because of Africa’s reputation as a basket case, the Government needed to involve consultants of international standing legal, policy and finance in order to attract equity holders.
In 1996, no African country had gone the way of privatising its telephone network system; this according to experts may have contributed to the high cost and loopholes in the deal done under the supervision of the World Bank.
