NDC Clarifies Its Position On The Sale Of Ghana Telecom To Vodaphone International Bv

The National Democratic Congress is dismayed and condemns the hasty “fire sale” of Ghana Telecom to Vodaphone International BV of the Netherlands. The NDC also wishes to place on record, that the actions of officials of the NPP government - from the Minister of Finance, to the NPP Members of Parliament (who as usual lived up to their rubber stamp credentials) - is demonstrative of a party and a government whose primary concern is their political survival over the competent management of the interests of the state.

The primary reason for the sale of Ghana Telecom at this time was apparently not only the survival of the enterprise, but rather the sustenance of the economy of Ghana. It is interesting to note that the celebrated economist – Mr. Kwame Pianim in an interview with Daily Graphic stated that Ghana’s economy needed an injection of $130 million to stay healthy and the sale of 70% of GT shares to Vodafone could provide that critical support, strengthen the macro economy and control inflation, he was quoted as saying that if the Government backed out of the sale they would be finished. This statement has not been denied. It was also stated that without this sale Ghana Telecom would be in critical condition and the workers jobs would be at risk, it is interesting that the Running Mate to Nana Addo was part of the Board that oversaw the decline of Ghana Telecom to this sorry state. It is also interesting to note that GT had been so “efficiently” managed over the last couple of years that it was indebted to several state agencies including the National Communications Authority, CEPS, GIFTEL liabilities, together with taxes and duties as well as the amounts owed under the bond issue. The NPP sympathizers dominating the Board apparently did not consider it a priority to ensure that GT fulfilled its obligations to the state.

What is more the Government of the NPP has been economical with the truth to Ghanaians about the sale price of GT in the contract they have entered into with Vodaphone. The Government of Ghana has sold seventy per cent of GT to the foreign investors for seven hundred million dollars and not nine hundred million as they would have Ghanaians believe, as under the terms of the agreement the Government is obliged to retire the GT debt of two hundred and twenty eight million dollars together with other obligations.

The NDC as the elected government of the people of Ghana always ensured that the well being and security of Ghana was always maintained when it sold shares in state owned enterprises to foreign investors. Under the NDC the Government of Ghana maintained majority shares for the people of this country in Ghana Telecom recognizing its importance as a strategic national asset. This ensured that the Ghanaian tax payer out of whose sweat and toil the state owned enterprises were built continued to reap benefits from their investments. The NPP has not been transparent in the process it adopted to privatize GT. Furthermore, the NPP has short changed the people of Ghana as it chose to sell GT for as little as it could. In what amount to a fire sale the NPP has sold invaluable assets belonging to the people of Ghana for a song and dance in order to bail the Ghanaian economy which they have mis-managed out of a short fall of foreign exchange. The NDC is of the view that more could have been realized for the sale of GT fixed line and carrier service, one-touch mobile service, the fibre-optic gateway and the exzeed call services.

After the 2008 elections the subsidy on fuel for which the proceeds of the sale of GT is intended to cover will have to be removed by a subsequent government because it is unsustainable. The NDC is of the view that the path to making the cost of fuel and petroleum products more affordable is to improve the operational efficiency of the Tema Oil Refinery and remove as many taxes as possible. The short-sighted sale of our national silver to bail out irresponsible politicians is morally repugnant. The long-term damage to Ghana’s economy and national security is a breach of trust which goes to the root of the relationship between a government and its people. As custodians of this country’s national assets the NDC nurtured the productive enterprises belonging to the people of Ghana and increased their market value prior to the handing over of the reigns of government to the NPP in 2000. As a government in waiting the NDC would like to assure Ghanaians of its commitment to managing Ghana’s economy to the benefit of the majority of the people. The NDC demonstrated its commitment to the application of sound principles to the management of Ghana’s economy between 1992 and 2000. It is the achievement of the NDC that it was able to hand over a growing economy to the NPP full of assets like the Ghana Ports and Harbours Authority, Ghana Civil Aviation Authority and Ghana Manganese Company and many more all of which have been whittled down to little or no more than fiefdoms where individual greed reigns supreme.

There are few assets left for the NPP to sell to bail itself out again, we hope they will not feel compelled to sell all the family silver to create the impression of efficient economic management, and then turn around to clamour for prudent fiscal management after the elections. The NDC would like to assure the people of its commitment to turning the management of Ghana’s economy into an enterprise in which truth reigns supreme and the interest of the majority is upper most in all of government’s dealings. The NDC would also like to give the assurance that it believes that it is important for the country to attract foreign investment for the growth of the economy, and would continue to encourage foreign investment in our economy. However, in all cases where foreign investors are acquiring an interest in State owned assets the NDC considers it important to ensure that the State receives the best possible value for the transaction, and further that the transaction serves the long-term best interests of the people of Ghana. The NDC as stated by our Flag-bearer will review the sale agreement between Vodaphone International BV of Netherlands (or who ever turns out to be the contracting party) and the Government of Ghana in order to satisfy itself that the people of Ghana have not been short-changed.