… but management accepts decision
Posted: The Chronicle | Friday, November 06, 2009
By Charles Takyi - Boadu & Daniel Nonor
One of the few people who have openly declared their intentions to contest for the position of National Youth Organizer in the ruling National Democratic Congress (NDC) party and also a staunch supporter of the Mills administration, Mohammed Mubarak (Ras Mubarak) has launched a scathing attack on the government, over its decision to re-engage Vodafone in over the Sale and Purchase Agreement (SPA).
In a statement, Mubarak disagreed with the government’s decision and could not fathom why after several weeks of dithering over the review report, there was going to be a re-engagement with Vodafone for the fear of contravening International Laws, asking “What kind of a house slave mentality is this?”
“I feel betrayed by the government’s seemingly weak posture and I hope this is not what we are going to live with for the rest of the President’s term in office”, he noted, adding that “the ruling government has spat on the country’s sovereignty and our seventeen year old democracy.”
According to him, President Mills and his NDC administration “has adopted a posture that makes our constitution wilt, and it is unclear whether President Mills is ready to take on the corruption and unregulated greed of the Kufuor regime.”
Mubarak’s worry is based on the fact that the inter-Ministerial Review Committee has already concluded in its report that “the sale was shrouded in secrecy, fraught with irregularity, ignored time-honoured procedures, contravened the laws of Ghana, did not guarantee value for money and, therefore, was not in the strategic interest of Ghana,” and yet the government is going to re-engage the Vodafone.
“I can’t believe government and some commentators are pushing the argument that re-abrogating the contract would scare investors. Are we saying the State doesn’t have genuine concerns and that there are no provisions in international law that caters for our kind of situation?” he asked.
When economic value erodes, Mubarak said one would expect the ruling establishment to restore balance. That notwithstanding, he noted - “What we heard from government regarding the sale and purchase agreement of Ghana Telecom to Vodafone was not a restoration of balance, but a carte-blanche to foreign companies and their local accomplices to misbehave.”
Though he does not support any attempt to flout Article 36 of the 1992 Constitution which encourages the Republic to “promote foreign investment within Ghana, subject to any law in force regulating investment in Ghana, the young and affable Mubarak, who was a radio broadcaster at Uniiq FM, emphasized that “the argument about breaking international law is untenable.”
This, according to him, was evident in the fact that there are provisions in international law which the government could invoke as basis for renegotiating the contract, quoting Article 49 of the Vienna Convention on the Law of Treaties between States and International Organizations which states - “A state or an international organization is induced to conclude a treaty by the fraudulent conduct of a negotiating state or a negotiating organization, may invoke fraud as invalidating its consent to be bound by the treaty,” to back his claim.
Article 50 of the said convention which Ghana is a signatory to, further states that “a State or an International organization that the expression of whose consent to be bounded by a treaty has been procured through the corruption of its representatives directly or indirectly by a negotiating State or a negotiating organization may invoke such corruption as invalidating its consent to be bound by the treaty.”
Based on the evidence and claim of Committee which investigated the sale of Ghana Telecom (GT) to Vodafone UK, which suggested that the sale contravened sections 240 and 244 of the Criminal Offences Act, 1960 (Act 29) due to an allegation to the effect that members of the then majority in parliament took bribes before endorsing the deal, Mubarak said “the government’s priority should have been getting to the bottom of this very serious claim.
For this reason, he noted that the rank and file of the NDC has every reason to be livid with President Mills for what they may consider as floundering by the government. “The government was given 1,460 days to change things after the perverse eight years of Mr. Kufuor. It has spent nearly 250days frittering away the days.
He thus stressed the need for the government to move from its reaction style to an action one, and do more than it is currently doing, the consequences of which he said could have catastrophic results for the NDC in future elections.
A statement issued on Tuesday by the Chief of Staff, Henry Martey Newman said government has reviewed the report of the Inter-Ministerial Review Committee it set-up in furtherance of a campaign promise to review the sale of seventy percent (70%) of Ghana Telecommunications Company (GT) to Vodafone International.
It however, accepted the recommendation of the Committee to re-engage with the management of Vodafone International and ensure that there is compliance with the country’s laws. This process of re-engagement, according to government was without prejudice to any legal suits pending before the courts, stressing that it has no intention of abrogating the SPA.
The re-engagement would also include issues relating to the operation of the National Fibre Optic Backbone which is considered a strategic national asset by many Ghanaians. The National Communications Backbone Company (NCBC) which is managing the Fibre Optic Backbone will enable Government promote its key ICT policies and must be an open-access network that serves the whole country with competitively-priced services that will enable the rapid development of e-Government, BPO and other ICT Industries and Services.
By this action, Government is looking forward to the realization of the true value of the fibre optic backbone and a consideration of its policy objectives in order to arrive at an outcome that benefits the people of Ghana. As recommended by the Committee, Vodafone GT would be expected to provide detailed reporting requirements based on audited accounting and reporting principles for the attention of the re-engagement team.
Also to be considered is the possible return of some GT investments including landed properties and the Telecom Emporium to the Government of Ghana. Government would also ensure a conclusion to the processes that have already started for the decoupling of the Ghana Telecom University from the rest of Vodafone GT’s operations.
It also took note of the Committee’s findings in relation to the appalling financial state of GT before the SPA which the Committee attributed to gross mismanagement, financial malpractices and irregularities by Telenor/Telecom Management Partners (TMP) and later the three-member Interim Management Committee (IMC) and thus stressed its commitment to institute investigations into and an audit the management of GT by the TMP and the IMC, led by Engineer Dickson Oduro Nyaning.
Accordingly, Government said it would set up a Joint Working Team to engage with Vodafone to ensure that the decisions outlined are implemented. Vodafone position
Meanwhile Vodafone Group Plc has welcomed government’s position to re-engage it in the sale and purchase agreement which offloaded 70 percent shares in Ghana Telecom to it.
Vodafone in a statement issued yesterday said it “looks forward to a constructive re-engagement with the government to find ways that Vodafone can support Ghana’s goals even more in future. Vodafone is pleased to note the Government’s statement that it will not abrogate or renegotiate the agreement,”
The company said the Government of Ghana’s public commitment to Vodafone GT allows the company to move forward and focus on its goal of providing world-class services to Ghanaians.
And beyond the GH¢600 million investment the company says it has made, the statement said “Vodafone is committed to further investment in the company and its operations, including expanding and upgrading the National Communications Backbone Company.
“Vodafone has already extended the fibre network and plans to invest further to complete the Northern ring,” the statement affirmed and pledged the company’s commitment to uphold the highest standards of corporate behaviour in all its dealings.
Vodafone noted further that since its operation in the country, it has invested GH¢600 million in strengthening the company and improving the quality of its services, and welcomes the Government of Ghana’s position. The statement said Vodafone is pleased to re-engage with the Government to secure the long term future of Vodafone GT.
In May this year, government set up a Ministerial committee to review the transaction that the previous government had with Vodafone. The committee, however, recommended that the government consider renegotiating the $900 million purchase deal, claiming that most of the terms of the sale and purchase agreement with Vodafone were detrimental to Ghana’s interest, adding that the government of Ghana did not get value for money from the sale,” said the report.
In 2007, the previous government sold 70 per cent shares in the enlarged GT to Vodafone; on a cash free, debt free basis for 900 million dollars. The Enlarged GT comprised of GT fixed line operations, cellular operations (Onetouch), Broadband operations, GT call centre (Exzeed), SAT-3 submarine Fibre optics landing station and National Fibre Optics Backbone.
The deal has since generated huge controversies and public debate across the country, with some calling for a renegotiation of the agreement.
