Minority Allays Investors Fears Over $2.25Bn Bond Saga

The Minority in Parliament has allayed the fears of the investor community with regard to concerns raised about the $2.25 billion bond issued earlier this month by the government.

The minority group strongly believes that having the opportunity to interrogate the procedures and processes as to how the bond was issued should rather be of great interest to corporate Ghana and the investor community at large, especially when matters about  law, conflict of interest and transparency seem to have been flouted by the government.

Earlier, some industry players, including the managing director of FirstBanc Financial Services, Mr. Amenyo Setordzie, have asked for circumspection on the discussion around the US$ 2billion bond issued by the government earlier this month.

He said this was needed to ensure that public commentary on the 15 and 10 year bond did not return to hurt the economy and the country’s reputation.

But the Member of Parliament for the Keta constituency, Richard Quarshigah, during an interview with this paper, noted with emphasis the responsibility placed on the Minority in Parliament by the constitution to hold the government accountable, especially during situations when the government embarks on a move to procure some loan or some resource which needs to be done with respect to the rules and procedure spelt out in the law governing such transactions.

“I think this move embarked on by the minority in parliament should scare any investor because we are looking at the law, we are looking at issues of conflict of interest, and we are looking at matters of transparency. So if we are looking at these things at a time when government has made a move to procure some loans and we in the minority think looking at these things must be done according to the rules and procedure. Why should that scare any legitimate investor or business person?” He quizzed.

According to him, such concerns raised by some individuals in the business community are unfounded, baseless and should be disregarded.

He said it is about time corporate Ghana, together with the investor community, applauded the minority group, for doing such a good job to ensure that good corporate governance practices are always adhered to in the country’s business environment.

Mr. Quarshigah disclosed that it is only crook investors who would get scared with the current turn of events in the country.

 “A legitimate person who wants to do business in the right way must not be worried. That person would even be more encouraged that in Ghana if you want to go and do business and someone else wants to use wrong means to extort money from you there is a very vibrant minority that would always hold the feet of the executive above fire and ensure that the right thing is done,” he contended.

The Minority in Parliament had called for a full-scale parliamentary inquiry into the recent $2.25 billion bond issued by the NPP government.

It said the transaction lacked transparency and had the potential of adversely affecting the welfare of the people of Ghana.

It further described the coupon rate of 19.75 as too high, using the current economic conditions, previous bond rates and global investor sentiments about the country as bases.

 

 

 

Source: therepublicnewsonline.com /Nana Appiah Acquaye

The Republic News Online

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