The Minority in Parliament says the energy sector bond failed because investors lacked confidence in Ghana’s economy.
Addressing a press conference in Accra, a ranking member of the Finance Committee of Parliament, Hon. Casiel Ato Forson, said the government of Ghana announced the issuance of an energy sector bond with the hope of raising Six Billion Ghana Cedis and a possibility of an additional Four Billion Ghana Cedis.
He stated that the government was expecting to raise about 2.4 Billion Ghana Cedis from the issuance of a seven year bond and about 3.6 Billion Ghana Cedis from the issuance of a ten year bond. He added that the government however did not achieve that.
Mr. Forson intimated that the failure of the bond is attributable to lack of confidence of investors in the economy and its managers.
He also indicated that the bond failed because of unrealistic assumptions, the inability of the government to meet the debt service coverage ratio and the confusing nature of the bond structure.
Mr. Forson added that the failure of the bond has caused financial loss to the state as a result of gross incompetence on the part of the government.
He said the Minority intend to summon the Minister responsible for Finance to appear before Parliament to answer to the circumstances that led to the breaches of the laws regarding the issuance of the bond.
He also expressed some concerns that the government did not seek prior parliamentary approval before issuing the bond describing it as ‘illegal and unconstitutional.’