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Democracy in action, government sued
over GT sale
Accra, July 31, Ghanadot/GNA – A group of individuals have
instituted civil action against government on its intended
sale of Ghana Telecom to Vodafone international.
Mr. Bright Akwetey, solicitor for the plaintiffs, mainly
known members
of the Convention People’s Party (CPP), said the causes of
action for the
case include recklessly causing financial loss to the state;
unlawful disposal of public property; entering into a
contract of sale detrimental to the public interest;
undervaluing public property for sale to a foreign company;
and entering into a public agreement without due process.
He is instituting the action on behalf of Mr Michael Kosi
Dedey, Naa Kordai Assimeh, Dr. Nii Moi Thompson, Ms
Rhodaline Imoru Ayama, Professor Agyeman Badu Akosah and Mr.
Kwame Jantuah.
The relief being sought by the action include revocation of
the agreement for the sale of Ghana Telecom to Vodafone
international; order for dissolving the enlarged Ghana
Telecom Company created for purposes of the sale of Ghana
Telecom; restoration of the fibre optic network to Volta
River Authority; and order for a true and faithful
revaluation of assets of Ghana Telecom.
Government on July 3 announced an agreement with Vodafone,
the world's leading mobile telecommunication group, in a
partnership deal for 70 per cent of its shares in Ghana
Telecom. The Government will retain a 30 per cent stake in
Ghana Telecom.
A government statement said an understanding had also been
reached with Vodafone to float GT shares on the Ghana Stock
market as soon as possible.
"In consideration of this agreement, Ghana Telecom's
enterprise value is approximately US$1.3 billion plus a cash
injection of US$500 million, totalling US$1.8 billion," the
statement said.
It said many benefits would accrue to Ghanaians, including
delivery of a superior product and services in every corner
of the country, raising GT's mobile market share to provide
competitive per minute call charges, efficient service to
ensure uninterrupted service to the consumer and injection
of substantial investment into the economy.
The statement said Vodafone would leverage its experience in
over 25 countries and partner networks in an additional 42
countries with over 260 million customers worldwide to
provide the best service in telecommunication to Ghanaians.
The transaction is, however, subject to approval by
Parliament which rose without debating the agreement that
has been criticised by several politicians and civil society
groups.
The Committee for Joint Action (CJA) has expressed its
opposition to government’s intention to sell 70 percent of
Ghana Telecom (GT) to Vodafone International Holdings B.V.
for US$900 million without regard to national economic,
political and strategic interest.
The group said the transaction was being carried out in such
haste as to deny Ghanaians the opportunity to discuss its
full significance.
Mr Samuel Okudzeto Ablakwa, a member of CJA, said the sale
of GT had been justified by false claim by government that
Ghanaians did not have the expertise to manage the company.
Mr Ablakwa said the government had not told Ghanaians the
whole truth about transaction, adding that assets of GT were
made up of GT fixed lines and carriers services, Onetouch
Mobile Services, SAT 3-Fibre-optic gateway and exZeed call
services.
He said in addition, the government was handing over the
fibre-optic network of the Volta River Authority and the
National Fibre-Optic Backbone, which was not yet completed
and was financed with a Chinese loan.
Mr Ablakwa said by this transaction, Vodafone would become a
private monopoly in the fixed line business and the biggest
telecom player in Ghana.
Parliament is to be recalled in two weeks to debate the
agreement, which has generated heated arguments in the House
between the government side and minority parties.
The Ghana Trades Union (GTUC) has also called on government
to withdraw the proposed sale/purchase agreement before
Parliament.
The GTUC in a statement signed in Accra by Acting
Secretary-General, Mr Kofi Asamoah called on government to
subject the proposed agreement to broad public debate and
consultations on available options.
“Ghana TUC wishes to express its concern about the sale of
GT shares, not only because of its implications for the
potential job losses but, more importantly, because GT is a
strategic national asset and, like other state assets,
government should not offer GT shares for sale as if GT was
created solely for financial gains without any consideration
whatsoever for its social and national security
implications.”
The Christian Council of Ghana (CCG) on its part has said
the divergent and dissenting views from well-meaning
Ghanaians on government decision to sell 70 per cent of
Ghana Telecom (GH) called for a careful reflection and
consensus building to ensure that any action taken did not
affect the supreme interest of Ghana.
A statement issued and signed by the Reverend Dr. Fred
Deegbe, General Secretary of CCG, said in as much as the
Council recognised and acknowledged the huge problem
confronting government in the administration and operation
of GT, and its policy on privatise participation as the
engine of growth, there were very critical and important
questions that needed to be thoughtfully analysed and
addressed so that the disposal of such a vital national
asset benefited the country both in the short and long
terms.
It said CCG thought Ghanaians needed to know factors
compelling government to hand over the management of GT to
foreigners.
GNA
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