Minority’s petition to US SEC on $2.25m bond needless – Economist suggests

Senior economics lecturer at the University of Ghana, Dr. Osei Assibey has indicated that the Minority’s petition to the US Securities and Exchange Commission over the US$2.25 billion bond issue is needless.

He said the minority should have rather exhausted institutions within the country before taking the matter outside.

“So I think as a country if we have an issue, we should resort to using internal mechanism or institutions; we have CHRAJ and even our own securities and exchange commission,” he told TV3.

“First and foremost we should have exhausted these institutions, and when not satisfied before going out to wash our dirty linen outside for everyone to see for us to dent our image.

This will not inure to the benefit of the country.” The Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa who is also the Ranking Member on Parliament’s Foreign Affairs Committee petitioned the US body on behalf of the National Democratic Congress MPs.

He is praying the commission to investigate suspected conflict of interest and insider trading which are violations of US law, with regards to Franklin Templeton purchasing 95 per cent of the 15-year and 7-year bonds. But Dr. Osei Assibey believes the Minority made the wrong move.

“If we don’t take care we will be sending the wrong signals because firms want to protect their image and in the international financial architecture any little thing can dent your image,” he cautioned.

In his assessment, the bond raised by government to restructure the country’s debts, has brought some benefits to the economy. “The cedi has stabilized, we have been able to increase our international reserve by about 2 billion dollars.

All of this is going to serve as a buffer to shore up our currency, from further depreciation,” he remarked. He added, “So it is good for the country.

I will recommend such debt re-profiling and restructuring. I do not think anything untoward happened in the issue of the bond.”