Fuel Revenue

Minority smears Ken Ofori- Atta Over Energy Bond

THE MINORITY caucus in Parliament has indicated that it will soon table a motion for the Finance Minister, Mr Ken Ofori-Atta, to be summoned before the House over the infamous case of under-subscription of the government’s Energy Bond.

At a press conference on Wednesday, the Minority, led by former Deputy Finance Minister Cassiel Ato Forson, said the bond issuance ought to have gone through Parliament for approval.

The Minority says the issuance of the bond was a terrible mess because the government allegedly cooked figures to outwit investors.

According to Mr Forson, the Finance Minister had caused financial loss to the state to the tune of GH¢1.2bn as a result of the under-subscription.

He argued the development is an indictment on the Vice President, Dr Mahamudu Bawumia, who heads the government’s economic management team, adding that  Ghana had now become a laughing stock in the international arena following the poor outcome of the Bond.

Ghana targeted to sell 3.6 billion cedis ($816 million) of non-sovereign bonds to settle the debt of energy utilities as demand for the securities but fell short of it even after the offer was extended by a week.

The West African nation placed 2.3 billion cedis of the 10-year bonds at 19.5% after receiving GH¢2.8 billion in bids demanding a yield of as much as 20%, joint deal advisers Fidelity Bank Ghana and the local unit of Standard Chartered Plc said.

The debt was offered separately to a tender for GH¢2.4 billion of seven-year securities that were fully subscribed on Oct. 27, when the book runners extended the sale for the 10-year bonds.

The government was not prepared to pay more to sell the debt, Sam Aidoo, head of treasury at Fidelity, revealed, adding, “we will come back to issue the rest any time market conditions are ripe.”

The sale is part of a GH¢10 billion issuance programme.

Source: Erica Arthur / Business.com.gh