Minority petitions US SEC to probe $2.25bn bond

The Minority in Parliament has filed a complaint with the Securities and Exchange Commission (SEC) of the United States of America over the controversial $2.25 billion domestic bond, which was issued in April 2017.

According to the Minority, this will lead to investigations by the US regulatory body into the bond issuance in which a US registered company, Franklin Templeton, purchased 95 percent of 15-year and 7-year bonds.

“The SEC will primarily be investigating suspected conflict of interest and insider trading which are violations of US law by the Hon. Trevor G. Trefgarne who is a Director of Franklin Templeton and a Board Chairman of Enterprise Group – a company owned and founded by the Finance Minister of Ghana, Hon. Ken Ofori Atta,” a statement from the Minority explained.

The Minority’s complaint was filed by its Ranking Member on Parliament’s Foreign Affairs Committee, Samuel Okudzeto Ablakwa on May 1, 2017.

The Minority has already called for a full-scale parliamentary probe into the bond issue, amidst concerns over the perceived secrecy and conflict of interest in the bond issue.

In April 2017, the Ashanti Regional Youth Organizer of the National Democratic Congress (NDC), Yaw Brogya Genfi was also compelled to petition the Commission on Human Rights and Administrative Justice (CHRAJ) to investigate the $2.25 billion bond whilst posing a series of questions.

More recently, a private legal practitioner wrote to the Attorney General requesting for more information on the controversial $2.25 billion domestic bond.

The Ministry of Finance, however, described attacks on the $2.25 billion bond issued as baseless, asserting that the issuance was not shrouded in secrecy or cooked for any particular investor.

Find below the full Minority statement

US$2.25 BILLION BOND SCANDAL – MINORITY SUCCESSFULLY PETITIONS SECURITIES AND EXCHANGE COMMISSION OF THE UNITED STATES OF AMERICA

The National Democratic Congress Minority in the Parliament of Ghana wishes to bring to the attention of the good people of Ghana that in fulfilment of the pledge we made at our April 17, 2017 media encounter and consistent with our constitutional and democratic mandate, we have successfully filed a complaint with the Securities and Exchange Commission (SEC) of the United States of America. This will lead to the commencement of investigations by the US regulatory body into the infamous US$2.25 billion bond issuance in which a US registered company – Franklin Templeton purchased 95% of 15-year and 7-year bonds.

The SEC will primarily be investigating suspected conflict of interest and insider trading which are violations of US law by the Hon. Trevor G. Trefgarne who is a Director of Franklin Templeton and a Board Chairman of Enterprise Group – a company owned and founded by the Finance Minister of Ghana, Hon. Ken Ofori Atta.

The Minority’s complaint was filed with the Enforcement Division of the SEC in Washington DC on 1st May, 2017 by our Ranking Member on Parliament’s Foreign Affairs Committee – Hon. Samuel Okudzeto Ablakwa on behalf of the Minority.

In a response, the SEC thanked the Minority for the fruitful engagement and provided a reference number for the case as: TCR1493656314549.

The Minority also wishes to observe that, note has been taken of the interest shown in this matter by Ghana’s Commission on Human Rights and Administrative Justice (CHRAJ) after receiving a petition from a private citizen and assures that the investigations being conducted by the United States regulatory body will not conflict nor undermine CHRAJ’s investigation.

The Minority takes this opportunity to re-emphasize our commitment and cooperation in assisting with both investigations in any way we can in the supreme national interests of Ghana and the United States of America.

Signed, Hon. Haruna Iddrisu (Minority Leader) [16th May, 2017]

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