Chief of Staff Okayed transfer of $250million Eurobond to UBA-Boakye Agyarko claims

The 2016 Policy Advisor to the Campaign team of the opposition New Patriotic Party (NPP), Boakye Agyarko, has revealed that the Chief of Staff, Mr. 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, credible 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 into a certain account at the UBA.

“What I have heard from reliable sources within the government is that the Chief of Staff Julius Debra authorized the Finance Minister to transfer the money from Bank of Ghana into an undisclosed account at United Bank for Africa (UBA),” he alleged.

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

Mr. Agyarko, who is a former Vice President of Bank of NewYork, accused Mr Seth Terkper for flouting the Bank of Ghana Act as well as the Financial Administration Act.

He expressed surprise that the minister gave in to pressure and transferred the money, when he knows very well that the Financial Administration Act does not allow government funds to 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. Mahamudu Bawumia broke the news of how the Finance Minister has secretly transferred the $250million Eurobond into an undisclosed account at the UBA.

Many economists and bankers including CEO Dalex Finance Ken Thompson have expressed their displeasure over government decision particularly, when it emerged that the UBA has invested the money in Treasury Bills, which is government security, and is getting an interest of 22%, while government is being offered only 11% interest on the $250million.

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 making what he described as an “unwise and foolish” decision could not be anything far from corruption.

He therefore 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 the deal.

“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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