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Business News Thu, 9 Nov 2017

Minority mocks government over $2.5bn Energy Bond

The Minority in Parliament yesterday mocked the governing New Patriotic Party (NPP), claiming that Ghana has become a ‘laughing stock’ in the international community.

This, according to the minority, follows the under subscription of the 2.5 billion dollar energy bond.

Addressing the media yesterday in Accra, Minority Spokesperson on Finance, Casiel Ato Forson, made the case that the Finance Minister, Ken Ofori Atta, has caused financial loss to the state to the tune of 1.2 billion Ghana cedis as a result of the under subscription of the energy bond.

Government failed to meet its target for the first tranche of the bond after a second attempt.

Managers ESLA who have been given the mandate by government to issue the bond were seeking to raise 6 billion Ghana cedis under two separate bonds.

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But it accrued a total of 4.6 billion Ghana cedis after it closed the auction Friday, November 3, 2017.

The 7-year bond received the targeted 2.4 billion Ghana cedis while the 10-year bond accrued about 2.2 billion Ghana cedis, below the target of 3.6 billion Ghana cedis.

The managers also accepted an interest rate of 19.5% for the 10-year bond.

Proceeds of the bond are to be used to clear the debt in the energy sector which as at December last year [2016] was 2.5 billion dollars.

According to Mr Forson, who is also the Member of Parliament for the Ajumako Enyan Essiam in the Central Region, the development was an indictment on the Vice President Dr. Mahamudu Bawumia.

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“This monumental failure is a classic vote of no confidence in the economy and the economic management team led by the vice president of the Republic. And let me say that, I hope and pray that after saying this, the vice president who is known for attacking people will not come and attack my person.

“He occupies the office of the vice president now, so I will plead with him to watch his temperament. His temperament is not befitting of a vice president…[the] world number one reader cannot even raise a bond that anyone can do.

“It is interesting Ghana’s number one reader cannot even raise a $6billion bond yet he brought something that has put Ghana to shame. So Mr. Vice president we need you as the chairman of the economic management team to come and answer. We require that from your office and the finance Minister to come and answer.”

Source: todaygh.com
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