A Ghanaian Diaspora professional group, called the Ghana Leadership Union (GLU) has announced plans to pool resources to buy a controlling stake in one of the country's biggest assets, Ghana Telecom.
GLU, a non-partisan NGO with membership based in the U.S.A, U.K., the E.U., Australia and Asia, says Ghanaian professionals based aboard have been shut out of the process of participating in the investment and management of divested State Owned Enterprises for too long; hence the decision to join the race for GT.
In furtherance of that, GLU has created a novel investment framework to attract financial and human capital to formally express interest in the acquisition of a controlling stake in Ghana Telecom Ltd.
In a statement copied to Public Agenda, the President of GLU, Dr. Kwaku A. Danso, stated, "the founders of our nation Ghana did not use taxpayers' funds to set up State-owned enterprises (SOEs) only to be sold to foreigners, or to insiders of the government who use proxies to buy these SoE's and leave the real stakeholders with the debts. This practice must be stopped, by any means necessary".
The statement said the GLU members are seasoned professionals with more than 20 years of telecommunications and information systems management and will bring investment capital in excess of US$500M to this venture.
This unprecedented investment approach facilitated by the GLU will also enable the participation of accredited investors within Ghana and abroad with as little as $1,000 per unit.
Asked about the investment strategy, the initiative's lead promoter in the UK, lawyer George Asomaning responded, "It is our intention to ensure that as much of the actual investment received gets channeled into the infrastructural development of Ghana Telecom, so as to position the company to deliver on its promise and to return a sizeable profit for the shareholders, the citizens of Ghana".
Nifa Bankroh, the organizer of the "Lets buy Ghana Telecom" initiative stated, "If Ghanaians do not get involved in the acquisition, ownership and management of significant state owned enterprises that are being divested, the likelihood of Ghanaian nationals being able to control the factors that affect their economic future will be marginal at best, and probably negligible.
Many Ghanaian businessmen and professional groups are of the
opinion that conditions imposed by so-called development partners or financiers, opening Ghana's markets to so-called globalization, has not proven economically beneficial over the last three decades. Professor Mintzberg of Canada has described globalization with respect to development as "a sham". Whilst foreign investors and competition are necessary and welcome tools in Ghana, this global inequity, coupled with a comparative lack of openness and transparency has led to an unequal playing field in the world of business dealings and negotiations.
The result is the massive brain drain, high accumulated debt burden, and high unemployment and underemployment in Ghana, which call for new development strategies.
Commenting on the sale of state-owned enterprises and the ongoing telecoms divestiture process, Michel Bowman-Amuah, an ICT entrepreneur resident in the United States,Stated that; "there are certain strategic national assets that must be safeguarded and placed above the drive for investment capital and chief among those is our national information and communications infrastructure. There has to be more regulatory oversight into corporate takeovers, mergers or acquisitions of these strategic national assets, if we are to maintain our sovereignty and protect our security interests".
Industry watchers say, Ghana's wireless phone networks are dominated by foreign-owned and controlled entities that were granted these franchises at a fraction of prevailing market rates, creating a very lopsided playing field which places the fixed network carriers at a significant competitive disadvantage. Recently, the largest operator (by subscriber base), Spacefon™ /Scancom™ was acquired in a multi-billion dollar transaction by Areeba™, another foreign concern without as much as public hearings into the process and we the general public are yet to be briefed about the details or benefits that the citizens of Ghana have realized in this sale.
The above transaction has been clouded by a shareholder proxy battle between the Lebanese operators of Scancom™ and the Ghanaian founder of Spacefon™, who was allegedly forced out with political support of the previous administration. Though the matter is pending in the courts, the government administration and regulatory agency, the National Communication Agency (NCA), has been eerily silent on the matter which begs the question about what investment protections exist for indigenous investors within Ghana's corporate regulatory system.
Also recently, the Government of Ghana settled a shareholder dispute with the former minority shareholder in Ghana Telecom, Telecom Malaysia, who had purchased the rights to increase their shareholding to a controlling stake, but were unceremoniously expelled when the current administration assumed power in 2001. This dispute has shaken foreign investor confidence in the long term viability of the divestiture process and its stability.
Investors need to be certain that their multi million dollar investments are secure regardless of ruling regime. It must be noted that a Ghanaian-owned and controlled investor group is no different and would require that specific safeguards are in place to protect the interests of their shareholders.
It is envisioned that this investment framework created by the GLU shall be reused by other industry sector professionals as other State owned enterprises are divested by the Government of Ghana in the near future. "It is our intent to safeguard the national interest by facilitating the participation of Ghanaians everywhere in the Nation-building process."
Mama Brenya Twumasi, a legal scholar and interested investor with many years of stock ownership experience writing from San Antonio, Texas, warned that "our nation cannot continue to ignore the views of the people, and that in essence, governmental transparency and accountability is a must in all present and future dealings if we, as a Nation State, wish to beviewed as credible by our allies and other Sovereign States." It is the general agreement of most Ghanaians surveyed on the issue that Ghana has too many skilled, experienced and competent Ghanaian professionals, educated as part of the initial plan of Ghana's first President, who are willing and able to own and manage our strategic assets. It is therefore unconscionable to simply stand by while foreign corporate raiders are ushered in on the red carpet and given the keys to our National treasure troves.
