Parliament orders Finance Minister to provide info on $2.25bn bond

Parliament yesterday ordered the Minister of Finance, Mr Ken Ofori-Atta, to, within one week, provide the House with detailed information on the recent $2.25 billion bond that the government issued.

He is required to provide the full complement of documentation related to the issuance, the participants, the utilisation of the proceeds and the currency in which the bond was settled.

The Speaker of Parliament, Professor Aaron Michael Oquaye, gave the order following a half-hour motion moved by the Minority Leader, Mr Haruna Iddrisu, for the House to prevail on the Minister of Finance to provide the House with detailed information on the bond.

The motion was seconded by the Majority Leader, Mr Osei Kyei-Mensah-Bonsu, who indicated that the provision of detailed information on the bond was consistent with the Constitution, which called for transparency and accountability.

The Speaker of Parliament captured the order in the following words: "This Honourable House demands that the Honourable Minister of Finance should provide detailed information on the recent $2.25 billion bond, including the full complement of documentation related to the issuance, the participants, the utilisation of the proceeds and the currency in which the bond was settled."

The Speaker of Parliament indicated that the one week deadline could be extended.

The Minority had already explained that it felt that the circumstances under which the bond was issued was not transparent.

It said it felt that there was an element of insider trading. It also raised issues relating to conflict of interest, the purpose and use of proceeds.

The Minority had also petitioned the Securities and Exchange Commission of the United States of America to investigate the $2.25 billion bond issuance in which a United States registered company - Franklin Templeton purchased 95 per cent of the 15-year and seven-year bonds.

But the Ministry of Finance had issued a statement denying any conflict of interest or wrong doing in the bond issuance.

Minority Leader's take

Mr Iddrisu said he was moving the motion for the full disclosure "because this is a matter of grave public interest."

He said the Public Financial Management Act and Article 181 of the 1992 Constitution would have enjoined the Minister of Finance to have demonstrated respect for the House by submitting same to the House for approval, but that had not happened.

Mr Iddrisu said the Minority had an official statement to the effect that GH¢9.7 billion of the $2.25 billion had been released.

He said any such expenditure must have the attention of Parliament.

Mr Iddrisu thanked the Speaker of Parliament for the opportunity to move the half-hour motion pursuant to Standing Orders 49 for the purpose of openness and transparency which should be the hallmark of any Parliament.

Majority Leader

Supporting the motion, Mr Kyei-Mensah-Bonsu said since the Constitution talked about transparency and accountability, any move for disclosure should be encouraged by Parliament as it would strengthen the country's parliamentary democracy.

"It is imperative that we join ranks with the Minority Leader for the Minister of Finance to explain the various issues involved," he said.

Minority raises other concerns

Moments after the order was given, the Minority in Parliament held a press conference to raise other issues with the bond.

The Member of Parliament for Ajumako/Enyan/Essiam and former Deputy Minister of Finance, Mr Cassiel Ato Forson, accused the Minister of Finance of causing financial loss to the state with the way he went about the issuance of the bond.

He said the country would lose GH¢5 billion or $1 billion over the next 15 years.