Minority petitions US-SEC over $2.25 billion bond issue

The Minority in Parliament has filed a petition with the Securities and Exchange Commission (SEC) of the United States of America (USA) to investigate a possible conflict of interest in government’s recent $2.25 billion bond issue. 

The Minority in its conflict of interest allegations suggest that a non-executive director on the board of Investment Firm, Franklin Templeton, who purchased 95 percent of the $2.25 billion bond, is also the Chairman of the Enterprise Group, which has links to the Attorney-General and the Finance Minister. 

Read also: Minority calls for inquiry into $2.25bn domestic bond

A statement signed and issued on Tuesday by the Minority Leader, Mr Haruna Iddrisu said the petition was filed with the Enforcement Division of the SEC in Washington DC on May 1, 2017 on behalf of the Minority by its Ranking Member on Parliament’s Foreign Affairs Committee, Mr Samuel Okudzeto Ablakwa.

Meanwhile, a private citizen, Yaw Brogya Genfi has petitioned the Commission on Human Rights and Administrative Justice (CHRAJ) to investigate the matter, which, according to him, has placed the Minister of Finance, Mr Ken Ofori-Atta in a position that breaches constitutional provisions.

Read also: Finance Ministry responds to Minority’s allegations over $2.25bn bond

Below is the full statement 

The National Democratic Congress Minority in the Parliament of Ghana wishes to bring to the attention of the good people of Ghana that in fulfilment of the pledge we made at our April 17, 2017 media encounter and consistent with our constitutional and democratic mandate, we have successfully filed a complaint with the Securities and Exchange Commission (SEC) of the United States of America. This will lead to the commencement of investigations by the US regulatory body into the infamous US$2.25 billion bond issuance in which a US registered company - Franklin Templeton purchased 95% of 15-year and 7-year bonds.

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.

The Minority's complaint was filed with the Enforcement Division of the SEC in Washington DC on 1st May, 2017 by our Ranking Member on Parliament's Foreign Affairs Committee - Hon. Samuel Okudzeto Ablakwa on behalf of the Minority.

In a response, the SEC thanked the Minority for the fruitful engagement and provided a reference number for the case as: TCR1493656314549.

The Minority also wishes to observe that, note has been taken of the interest shown in this matter by Ghana's Commission on Human Rights and Administrative Justice (CHRAJ) after receiving a petition from a private citizen and assures that the investigations being conducted by the United States regulatory body will not conflict nor undermine CHRAJ's investigation.

The Minority takes this opportunity to re-emphasize our commitment and cooperation in assisting with both investigations in any way we can in the supreme national interests of Ghana and the United States of America.

Signed,

Hon. Haruna Iddrisu (Minority Leader)

[16th May, 2017]