The Minority in Parliament is demanding a refund of $2 million that was paid in 2019 as a premium to acquire ordinary shares for the development of the Accra Sky Train Project.
This comes after the 2021 Auditor General’s report categorized the transaction as a net liability.
According to the Auditor General, the payment was made through the Ghana Infrastructure Investment Fund (GIIF), which acquired 10 ordinary shares in the Special Purpose Vehicle (SPV) known as Ai Sky Train Consortium Holdings. The shares were valued at $2 million.
Addressing the media in Parliament on Monday, July 17, 2023, Governs Kwame Agbodza, the Minority Chief Whip demanded that the amount be refunded to the government. He raised concerns about the lack of necessary approvals and licenses for the project, questioning the decision-making process that led to the payment. Vice President Dr Bawumia, the Chairman of the Economic Management Team, was singled out as being involved in authorizing the payment.
“…..when you have a situation where the minister then says in 2023, now that he always believed that before the project takes off, that should be a cabinet approval, there should be a parliamentary approval, PPA approval, since none of these things was approved – In fact, the Auditor General’s report suggested that the company did not even have the necessary license to operate the system they wanted to operate?”
“So the question is, what was the reason for the government to act in a way to give our $2 million? Who actually took the decision to pay this entity in Mauritius was Dr Bawumia, the chairman of the economic management team, they call him the strategist now – aware that without any recourse to public financial management or the Public Procurement Act, it was wrong for any government entity to pay that kind of amount?”
The Accra Sky Train Project, initially announced by President Akufo-Addo in 2017, had its plan drafted, but feasibility studies remained inconclusive according to the Auditor General’s report. The project was intended to be developed by Ghana Sky Train Limited through a Design, Build, Finance, and Operate arrangement facilitated by a Special Purpose Vehicle incorporated in Mauritius.
Minister for Railways Development, John Peter Amewu, recently stated that the government would not be able to implement the sky train project as previously indicated due to the lack of fiscal capacity. He emphasized that such a venture requires a significant amount of capital that the government cannot absorb.
Governs Kwame Agbodza reiterated his belief that the arrangement surrounding the project amounts to organized crime. He called for the refund of the $2 million, emphasizing the need for accountability and responsible public expenditure.
“Who authorized the payment of the 2 million Dollars in terms of the so-called feasibility? Which normal decision-maker pays out 2 million Dollars for feasibility to determine whether the project is bankable? This thing will only happen when it is an organized crime when people are careless.”
Despite Transport Minister Kwaku Ofori Asiamah’s earlier statement that processes were ongoing for the construction of the sky train project, the Auditor General’s report highlighted the lack of progress in terms of feasibility studies. The report urged the management of GIIF to finalize and approve the risk management policy and to monitor the feasibility of the investment in the SPV.
To date, the SPV, Ai Sky Train Consortium Holdings, has not obtained the required license for “Aeromovel Technology” for the Sky Train Project. Furthermore, GIIF was found to lack certificates of ownership for equity investments in three companies, totalling ¢146.6 million.
The Accra Sky Train Project, a $3 billion initiative aimed at alleviating traffic congestion in Accra, was expected to commence construction in January 2020 under a concession agreement signed with South African firm Africa Investment (Al) in November 2019.
As discussions surrounding the botched project continue, the Minority in Parliament is urging accountability and the return of funds in order to safeguard public resources.
