SFO Ghana begins probe into Vodafone deal

…but Vodafone wants to top-up

Impeccable information available to the Financial Intelligence (FI) indicates that Ghana's Serious Fraud Office (SFO) has launched preliminary investigations into the sale of Ghana Telecommunications Ltd (GTL) to Vodafone International Holdings BV (VIHBV).

In order to gather independent information on the sale, the SFO has sent letters to all institutions connected in any way to the now infamous deal to provide information to the office.

Some of the institutions are Vodafone Ghana, National Communications Authority (NCA) the Divestiture Implementation Committee (DIC) as well as some individuals who are believed to have played important roles in the transaction.

As at last week, SFO sent a letter to the Ministry of Communications demanding a copy of the review committee report to help it in its investigations.

According to the FI sources close to the SFO, this preliminary investigation may serve as a prelude to a full-blown investigation into a transaction that threatens to mar the long standing relationship between Ghana and her former colonial master, Britain.

Information put out by the Mail in London last week had it that the British SFO also wanted to investigate Vodafone's 450 million Pound acquisition of GT, however the Ghana SFO, according to our source says whatever the British counterpart would be doing would just be complementary of what SFO Ghana does, since the primary duty, "is ours," to find out what was done wrong.

SFO Ghana, for instance would like to find out how the former Deputy British High Commissioner Menna Rawlings became a representative of Government of Ghana when it met Vodafone on November 9, 2007.

FI sources in UK also speak of attempts by the British government to pressure Ghana government to abandon any further action on the Vodafone saga. The sources spoke of the potential huge embarrassment both Buckingham Palace and No 10 Downy Street believe the Vodafone deal in Ghana threatens to bring upon the Isle.

"The British government is therefore sending a delegation to Ghana to come and hold discussions with their Ghanaian counterparts on Vodafone," the source revealed, explaining that the case is a slap in the face of Britain since it has the potential of revealing British corrupt practices on the globe. Meanwhile international relations sources also say that the US is happy about the predicament in which Britain seems to have found herself in Ghana.

According to the source, one of the approaches the British government has suggested to Vodafone is to plead for a top-up of the $ 900 million they paid Ghana government, and FI has already picked up hints from government sources that Vodafone has actually offered to top up their price money.

However government is also said to be reluctant even to discuss it since many more revelations about the deal keep pouring in by the day.

According to documents in our possession, as at 31st December 2007, the Transaction Advisors to government on the privatisation of Ghana Telecom, had given GT an Indicative Value of $ 1,613 billion and had secured a $1,075 billion bid for 66.67% of the original GT. However, their services were dispensed with before they could finish their work.

It is also clear that while Ecobank Development Corporation (EDC) the Transactions Advisors were still in the process of short-listing the applicants, the then government was at the same time holding discussions with Vodafone at the seat of government.

Experts therefore believe that in the light of the foregoing, Government of Ghana must endeavour to base its strategy on allowing all the facts to come in, which may enable it to cite Vodafone officials for fraud. This will create the appropriate conditions for renegotiation.