Executive Director of the Ghana Center for Democratic Governance, Prof. Kwasi Prempeh has advised, government appointees involved in conflict of interest situations to step aside to allow for investigations.

Describing such actions as a ‘perennial chronic insensitivity’, Professor Prempeh noted that very little has been done to curb this menace by governments.

The Professor, who was speaking on Joy FM’s Super Morning Show noted, that he was expecting President Akufo-Addo to issue an executive order to investigate some appointees, including finance minister Ken Ofori Atta and his deputy Charles Adu Boahen who are alleged to be involved in a conflict of interest.

According to him, such an act would prove his words of protecting the public purpose.

“With conflicts, I think prevention is always better than cure and the concept as defined in the constitution and generally in the common law of our tradition, the legal definition tries to do is to give you an opportunity to step aside and not walk into the conflict.

“This is because once you walk into it, the risk that it will materialise is very high,” he stated.

Background

Discussion surrounding a conflict of interest in the positions of the Finance Minister and Minister of State at the Finance Ministry came to light after an ace Ghanaian broadcaster expressed his surprise at government for constantly employing the services of a company co-founded by the Finance Minister – Data Bank Financial Services – as advisors for some of Ghana’s international loan transactions.

Kwasi Kyei Darkwah (KKD) suggested that it may be the reason the country keeps borrowing, a habit he insisted cannot be allowed to continue.

Speaking on GTV’s Breakfast Show on Wednesday, August 17, he lashed out at Parliament for keeping quiet about such an issue.

But in a rebuttal the Ministry of Finance has dismissed the claims which went viral on social media that Databank and Black Star Brokerage were handpicked by the Finance Ministry and the Bank of Ghana to act as Bond Market Specialists for government bond issuance, hence benefiting from those transactions.

In a statement, the Ministry said, it is incorrect the claim that these two firms have been appointed as advisors to the Ministry of Finance (MoF).

“The selection of the Primary Dealers [PDs] and Bond Market Specialists [BMSs] is an automatic process based on market performance and historical secondary market trading activity which is publicly available and cannot be manipulated by the Ministry of Finance [MoF] or the Bank of Ghana [BoG]”.

“Since 1996, the Ministry of Finance with the Bank of Ghana has developed and implemented various policies which affect the issuance and trading of Government of Ghana debt securities (Treasuries and Bonds). The ultimate objectives of these policies are to develop an efficient fixed income market, strengthen the capacity of local institutions and deepen financial intermediation”, it added.

Furthermore, it pointed out that Databank and Black Star Brokerage are two out of nine firms that have been selected by BoG/MoF as Bond Market Specialists and not Advisors to MoF.

The Ministry added that “the other firms selected to be BMSs are – Ecobank, Stanbic Bank, Absa, Cal Bank, GCB Bank, Fidelity Bank, and IC Securities. As stated above, the selection of the firms was solely based on their historical performance on the Bond Market and no other consideration”.

Meanwhile, the Databank has had cause to, over the past year, distance itself from accusations of conflict of interest in government transactions.

In June 2021, the company reiterated that Ken Ofori-Atta resigned as Executive Chair of the bank in August 2012 and “resigned from all the Databank Boards in February 2014.”

“So you go to court and the ‘court says there is no conflict’, and then there is a celebration so this thing festers every bond specialist can be a minister.