Adongo Against appointment of  Databank, Black Star brokerage as transaction advisors to Ministry of Finance

National Democratic Congress (NDC) Member of Parliament (MP) for  Bolgatanga Central Constituency, who doubles as the Ranking Member of Finance Committee of Parliament, Honourable Issac Adongo has kicked against the appointment of Databank and Black Star Brokerage as the transaction advisors to the Ministry of Finance.

According to him, the appointment of Databank and Black Star Brokerage as Transaction Advisors to the Ministry of Finance is a deadly combination of the Minister of Finance,  Mr Ken Ofori Atta and Charles Adu Boahen in Motion without shame.

He indicated that the Ministry of Finance headed by Messers Ken Ofori-Atta and Charles Adu Boahen have announced a list of primary dealers and introduced a new term called Bond Market Specialists.

Interestingly, he confirmed the firms owned by these two personalities, Databank belonging to Ken Ofori Atta and Blackstar Brokerage Limited owned by Charles Adu Boahen have been selected as two of the three local investment advisory firms. 

The duo, Ken Ofori Atta and Charles Adu Boahen according to Mr Adongo have thus literally awarded to themselves through their companies the lucrative contracts that involve managing Government's borrowing program with an estimated Ghc60 billion a year gross financing. 

He stated that the fees to be shared by the transaction advisors of the Government borrowing program, including Mr Ofori Atta and Charles Adu Boahen's companies is estimated at Ghc210 million a year. 

"This is a clear conflict of interest. The Minister for Finance has made the government borrowing his private business and benefitting each time Government borrows through Databank either as a bookrunner or Co-Manager of Eurobond issuance. Ken Ofori Atta's Databank has now been joined by Charles Adu Boahen's Blackstar Brokerage Limited to share the spoils. 

"The combination of this deadly team is set to further engage in reckless borrowing as evidenced in the more than doubling of Ghana's public debt from Ghc120 billion at the beginning of 2017 to about Ghc300 billion by the end of 2020," the Bolga Central MP argued.

In addition to the about GH¢180 billion increase in Ghana's public debt, he pointed out that about GH¢70 billion of the end 2016 debt of Ghc120 billion were refinanced and in some instances reprofiled between 2017 and 2020.

According to the MP,  this means that a total of about Ghc250 billion Government borrowing program was carried out in the last four years with Ken Ofori Atta's Databank acting as his transaction advisors. 

He argued that the accrued fees shared by the transaction advisors,  including Databank, is estimated at 0.35% of the borrowing program of the Government. 

He said that "That is about Ghc875 million fees paid by Ghana to these transaction advisors, adding that  "No wonder Ghana is bleeding from excessive reckless borrowing without any meaningful benefits to the suffering taxpayers."

He was of the view that this harrowing public debt program was fested on Ghanaians when only Ken Ofori Atta's Databank was involved. I am scared for Ghana when I think of Charles Adu Boahen's Blackstar Brokerage now joining the fray to share the spoils. 

"How big will the Government's borrowing program be to ensure that Databank maintains its fees income from the last four years and leave some spoils for Charles Adu Boahen's Blackstar Brokerage to help itself with. 

"Since they came to power, there is no bond transaction for the government that the Minister didn't benefit personally from through Databank and now Charles Adu Boahen through Blackstar Brokerage," he said.

He maintained that Mr Boahen who sat and is expected to sit on the Board of Bank of Ghana where Databank and Blackstar Brokerage will be operating as transaction advisors. 

He contended that Mr Boahen also sat and is expected to sit on the Governing Board of the Securities and Exchange Commission that regulates Databank and Blackstar Brokerage Limited. 

He said the bonds and other Government debts to be issued through these companies are also expected to be approved by Charles Adu Boahen sitting on the SEC.

As a matter of fact, Mr Adongo stated that any complaints relating to these companies would be directed at SEC on whose Governing Board sits Charles Adu Boahen and controlled by a former Vice President of Databank, Rev Ogbamey Tetteh who masterminded policy rollout that has collapsed the securities sector of Ghana. 

He stated that Ghana has been bleeding and I fear it will bleed even more with Ken Ofori Atta and Charles 

Mr Adongo raised an alarm that Mr Adu Boahen now hands holding the interests of Databank and Blackstar Brokerage, asking that "Who watches the watchman?

Freeman Koryekpor Awlesu