Former Rector of the Ghana Institute of Management and Public Administration (GIMPA), Professor Emeritus Stephen Adei, has said that the Finance Minister, Ken Ofori-Atta, resigned from Databank approximately four clear years before joining frontline politics.
According to him, although Ken Ofori-Atta is the founder of the Databank, he has nothing to do with it at present.
Speaking on Joy News programme ‘Upfront’ on August 18, Professor Adei said Databank’s role as transactional advisors to government borrowings was not for profit but for the country’s development.
“Three to four years before Ken Ofori-Atta joined politics, he resigned from management, board [and] anything associated with Databank. Of course, he being a founder he has shares in it. So he has nothing to do [with Databank]. I know that for sure,” he said.
The Ministry of Finance has in a statement clarified that Databank and eight other firms are not transaction advisors to government in its Eurobond activities but that they are 'bond market specialists' - experts who are chosen based on merit.
With respect to monies borrowed by government on Eurobond markets, the professor defended: “The borrowing was meant and I believe that it was meant to accelerate the nation's development. It’s like saying you went and bought a car for commercial purposes and the car had an accident therefore the reason why the car had an accident was because you had a share in an insurance company which you have insured it to benefit from it. There is fundamental fallacy that the borrowing was meant to make Ghana poorer,” Professor Adei added.
The former chairman of the National Development Planning Authority, NDPA, indicated that the role of Databank should not be on whether there is a conflict of interest but rather focus should be given to whether it discharged its duty to the country at an extra cost.
He said although he wished Databank was not in it current role of transaction advisors for Ghana’s borrowing, it will always remain part of the process.
He added that the comments made by Kwasi Kyei Darko, alias KKD, that Ken Ofori-Atta’s Databank was profiting off the country’s borrowing was below the belt.
“The question is this. Being financial advisors and there will always be a consortium not to them alone…did it cost Ghana more than otherwise? This is the fundamental question. I doubt whether indeed,” Professor Adei insisted.
“I think that whenever a country like Ghana is going to the international financial market, these advisors are part and parcel of it. I personally wish it was other companies other than Databank. What I am saying is this. To say that the Minister went to borrow so that Databank will benefit from it, I think it is below the belt,” he maintained.
Source: Ghanaeb
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Childish! Can't he rejoin after retiring from his political office and regain his former position?
@mokasa you are rather missing the point. How does conflict of interest arise when the criteria for selecting the banks is not discretionary but simply based on merits? Customarily the best performing banks on the bond market were automatically eligible. At the time, 9 best performing banks were automatically selected to act as Bond Market Specialists . In fact, Databank was the second best performing bank at the time. So by your thinking a bank that had worked hard to be in that position should be ignored because of your flawed interpretation of what constitutes conflict of interest? Mind you, Databank had consistently qualified to play that role since 2014 so again by your logic they were fit then but not now cause the finance minister holds shares? Then again why is the impression being created that only Databank played that role...Why the deliberate attempt to act like 7 other banks do not also play the same role (Ecobank, Stanbic Bank, ABSA, Cal Bank, GCB Bank, Fidelity Bank, and IC Securities)? As for KKD the least said the better.
Is Kwasi Kyei Darkwah looking for work
Prof, you are missing the point, Ken is still a share holder of the bank and therefore conflict of interest issues still arises.
Thank you professor, I want KKD the ***barred word*** to find out, in Rawlings regime, the government decided to sell Ghana's shares in Ashanti Goldfields by then, what role did Databank played? After that he can talk so that he can redeem his name. Databank has played a leading role from the day of its inception till now and it will continue to play its core business no matter what government will be in power. When Kwabena Duffours's company took over the payment of government payroll whiles as Finance minister where were you people by then? Go to Tema port and you will see the general secretary of NDC company doing business there.