Databank Financial Services, the private investment brokerage firm of Finance Minister Ken Ofori-Atta has so far earned him over Ghc159 million in fees from government bonds that his personal company was inserted to transact for the Akufo-Addo government.
This dubious conflict of interest arrangement is one of the reasons why Ghana has been driven to an economic doldrum where it badly needs a financial bailout from the International Monetary Fund (IMF).
Mr. Ofori-Atta himself had owned up to the influence-peddling that enabled him to cream off the staggering Ghc159.3million for being a book-runner on government bonds.
The admission came up in Parliament after Ofori-Atta who has been playing hide and seek with Parliament was forced to face MPs and answer questions, including one by NDC MP for Okaikoi North, Theresa Awuni, who wanted to know the value of government bonds issued since 2017 and how much transaction advisors were paid.
According to him, in 2017, when his cousin’s government borrowed GHC18.30 billion, his company, Databank made GHC30 million, along with other book runners.
Then in 2018, Databank made GHC12.30 million when the Akufo-Addo government borrowed GHC24.37 billion.
In 2019, his cousin’s government again raised GHC25.48 billion and Databank again was paid GHC11.83 million, and again in 2020, Databank was paid GHC20.40 million when the state raised GHC35 billion.
In 2021, when the state raised GHC103.62 billion, Databank was paid GHC 85.37 million.
In addition to Data Bank, other transaction advisors used are Barclays Bank Ghana, Fidelity Bank, IC Securities and Stanbic Bank Ghana.
But it is not only Ofori-Atta’s Databank which creamed off millions from the corrupt conflict of interest arrangement in which Ministers have hired their private companies as so-called transaction advisors for government bonds.
The Minister of State in charge of Finance, Charles Adu Boahen, also had his Blackstar Brokerage similarly hired and paid by the Finance Ministry as a so-called transaction advisor.
For many, this arrangement explains why the Akufo-Addo government dragged its feet over the need to go for an IMF bailout as the scrutiny would affect clear politically exposed companies of Ofori-Atta and Adu Boahene.
Source: whatsupnewsghana