Prosecute GIIF officials over $2m Sky train deal – Kwame Agbodza
The Ranking Member on the Roads and Transport Committee of Parliament, Governs Kwame Agbodza, is calling for the prosecution of management and board members of the Ghana Infrastructure Investment Fund (GIIF), who signed off a $2 million investment in the botched Accra Sky Train project.
In his 2021 audit report, the Auditor General flagged the $2 million investment and called for project monitoring.
But speaking to the media in parliament, the Adaklu MP said the recommendations of the A-G are not far-reaching enough.
According to him, due diligence and the required feasibility studies were not conducted before the project started.
“It appears to me that the board and management of Ghana Infrastructure Investment Fund have become very reckless in the decision they make in utilizing meagre resources that we put into that fund. Especially, at a time when we are finding it difficult to feed our children at school and recruit the right frontline health care workers to be at our health facilities. Amidst the general excruciating hardship in the country they have the ability to throw away in my view 2 million dollars?” the lawmaker quizzed.
He said the transaction is illegal and those behind it must face the law.
“I think that the Auditor General should activate and probably send them to EOCO for this money to be retrieved,” he added.
The purchase of the shares was made for the development of the Accra Sky Train Project, which is now reported as a net liability, according to the 2021 audit report on the Public Accounts of Ghana’s Public Boards, Corporations, and other Statutory Institutions.
In the audit report, it was established that the Africa Investor Holdings Limited incorporated a Special Purpose Vehicle (SPV) in Mauritius to establish the Ghana Sky Train Limited to develop the Accra Sky Train Project through a concession on Design, Build, Finance and Operate arrangement.
The Auditor General said the payment of US$2 million by the Government of Ghana through the Ghana Infrastructure Investment Fund was full consideration for 10 ordinary shares at US$1.00 per share in Ai Sky Train Consortium Holdings (the SPV). Thus, the premium paid for each share was US$199,999.
The SPV reported a net liability on 31 December 2020.
Ai Sky Train Consortium Holdings, the Auditor-General noted that, is yet to obtain the licence for ‘Aeromovel Technology’, required for the Sky Train Project.
The Auditor General stressed the US$2 million investment in the SPV could not be recovered if the Accra Sky Train Project is unable to secure the licencing, and the Executive and Parliamentary approvals.
“The feasibility studies which will better inform the project economics and required approvals from the Cabinet of Ghana and the Parliament of Ghana are still not conclusive,” the Auditor-General said.