Business News Tue, 16 May 2017

Minority petitions US SEC over $ 2.25bn bond

The Minority in Parliament has petitioned the Securities and Exchange Commission of the United States to commence investigations into the NPP government’s 2.25 billion dollars bond issued this year.

A statement on the petition by the Minority and copied to Citi Business News said,

“The SEC will primarily be investigating suspected conflict of interest and insider trading which are violations of US law by the Hon. Trevor G. Trefgarne who is a Director of Franklin Templeton and a Board Chairman of Enterprise Group – a company owned and founded by the Finance Minister of Ghana, Hon. Ken Ofori Atta.”

Government in April this year raised $2.25 billion from four bonds including a 7 and 15 year bond, at a rate of 19.75%.

The bond which was open to resident and non-resident investors raised a lot of concerns especially from members of the opposition NDC.

The Minority raised issues of possible conflict of interest following the purchase of 95% of the bonds by Mr. Trefgarne who is a Director of Franklin Templeton and a Board Chairman of Enterprise Group.

Gov’t defends bonds issue

Government has since defended the bonds issue explaining that it did not flout any regulation.

For instance, at the recent World Bank/IMF Spring meetings in Washington, the Vice President, Dr. Bawumia criticized the Minority describing their stance as a display of ignorance on the situation.

Some financial analysts have also said government did no wrong concerning issues of conflict of interest raised by some critics.

The Minority’s petition, Citi Business News understands, was filed early this month (May) by the Ranking Member on Parliament’s Foreign Affairs Committee – Hon. Samuel Okudzeto Ablakwa on behalf of the Minority.

The US SEC has since acknowledged receipt of the petition.

Lawyer demands authentic details of $2.25bn bond

The move by the Minority follows a similar one embarked on by private legal practitioner, Victor Kojogah Adawudu.

He has written to the government requesting for more information on the controversial $2.25 billion domestic bond which was issued in April 2017.

According to the lawyer, Victor Kojogah Adawudu, he exercised his right to information due to the scanty details provided by the Ministry of Finance on the issue.

In a letter addressed to the Attorney General and copied to the Ministry of Finance, Mr. Adawudu, who also enclosed a processing fee of GHc 1,000, said the information he is seeking is aimed at addressing several concerns voiced on the matter.

Source: citibusinessnews.com
Related Articles: