Chief of staff gave Finance Minister green light to transfer $250million Eurobond to UBA-Boakye Agya

The 2016 Policy Advisor to the Campaign team of the opposition New Patriotic Party (NPP), Boakye Agyarko, has revealed that the chief of staff Julius Debra was the one who gave the Finance Minister Seth Terkper authorization to transfer the controversial $ 250 million Eurobond proceeds to the United Bank for Africa (UBA).

According to him, information available to him from the corridors of power indicates that the Chief of Staff, Mr. Julius Debra gave the Finance Minister the green light to transfer the money from the Bank of Ghana to a certain account at the UBA.

“What I have heard from reliable sources within the government is that the authorization for the transfer of the money finally came from the chief of staff,” he stated.

Although, Mr. Seth Terkper admitted transferring the $250million being part of the nation’s $1billion Eurobond to UBA, Mr. Agyarko argued that there is no way the minister could have transferred the money without the approval of President Mahama or any other influential person in government.

Mr. Agyarko expressed surprise that the minister gave in to pressure and transferred the money, when the Financial Administration Act, clearly states that government funds could not be invested in government securities.

According to him, section 21(1) of the Financial Administration Act state that, “The Minister may cause public money to be invested on behalf of government in the purchase of securities for such period and on such terms as the minister thinks fit except that public monies may not be invested in government securities.”

It would be recalled that a former Deputy Governor of Bank of Ghana and vice presidential candidate of the opposition New Patriotic Party (NPP), Dr. Mahamadu Bawumia broke the news of how the Finance Minister has secretly transferred the $250million Eurobond to a certain account at UBA.

It has emerged that the UBA is paying only 11% interest on the $250million to government, but surprisingly, the bank has invested the same money in Treasury Bills, which is government security, and is getting an interest of 22%.

Speaking on Oman FM’s political analysis programme Boiling Point, Mr. Agyarko, accused the Finance Minister for undertaken what he described as a wasteful venture.

Mr. Agyarko, who expressed displeasure over the deal, said the only motivation for the minister to undertake such “unwise and foolish” venture could be anything far than corruption.

He warned Mr. Seth Terkper to tread cautiously in his dealings at the Finance Ministry because an NPP administration will leave no stone unturn by investigating such deals.

“Seth Terkper should be careful in whatever he is doing so that if NPP comes to power and is investigating the issue they will not say that NPP hates Krobos.”

Story by: Michael Creg Afful

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