C'TTEE ON VODAFONE PRESENTS REPORT (PAGE 3)

THE Inter-Ministerial Review Committee on the Vodafone Transaction yesterday presented its report to the Minister of Communications, Mr Haruna Iddrisu, in Accra.
Presenting the report, the Chairman of the committee, Mr Justice Akwei Addo, said the committee examined all facts under its terms of reference before coming up with its report with an appendix attached.
“Without much ado, we would like to present the report and the appendix to the minister,” Mr Justice Addo said.
Receiving the report, Mr Iddrisu noted that he was unable to comment on any of the recommendations, since the report had just been presented to him.
He, however, reiterated the Government’s commitment to open and transparent administration and explained that any decision taken by the Government based on the recommendations of the committee would be made known to the public.
He said the Government was aware of the major ramifications of the review for investment but was also mindful of the strategic interest and the interest of the telecommunication industry.
Mr Iddrisu thanked the chairman and members of the committee for the diligent and thorough work done to put to rest such a delicate and controversial issue.
The minister said the committee’s work was partly in fulfilment of the campaign promise of the National Democratic Congress(NDC) before the December general election to review the sale of Ghana Telecom (GT) for $900 million to Vodafone, when given the mandate to rule.
He expressed profound appreciation to the committee members for a job well done.
The committee was set up early this year to have a second look at the sale of Ghana Telecom to Vodafone by the previous administration.
The terms of reference for the 10-member committee, aka the Justice Akwei Addo Committee, was to investigate the justification and rationale for the inclusion of an Indemnity Clause in the agreement and its possible removal.
Other terms of reference included ascertaining the value for money and the financial implications of the cash-free debt-free basis of the transaction for the Government of Ghana (GOG), as well as finding explanation for the huge liabilities of Ghana Telecom prior to the sale and why some of the liabilities were not declared at closing.
The inclusion of the National Fibre-Optic Backbone infrastructure in GT transaction, when it was conceived as a stand-alone, open-access and non-discriminatory project to support the deployment of ICT in the country, was also investigated by the committee.
The committee also ascertained the status and repayment of $30 million from China Eximbank for the implementation of the first phase of the National Fibre Optic Backbone and its implication on future financing of ICT projects.
It also determined the extent to which Vodafone had injected working capital into GT, which was the basis for the sale by the previous government.