Accra, Oct. 16, GNA - The following is the full text of the Vodafone Review Report released by the government on Friday in a statement signed by Dr Valerie Sawyerr, Deputy Chief of Staff.

Full text begins:
In 2008, the Government of Ghana divested seventy percent (70%) of its shares in the Ghana Telecommunications Company Limited (GT) to Vodafone International Holdings BV for nine hundred million US dollars ($900m) under a Sale and Purchase Agreement (SPA).

The then Minority group in Parliament urged on by a large section of Ghanaians strongly opposed the sale, on grounds among others, that the sale was shrouded in secrecy, fraught with irregularity, ignored time-honoured procedures, contravened the laws of Ghana, did not guarantee value for money and therefore was not in the strategic interest of Ghana.

In furtherance of a campaign promise to review the sale and the SPA in order to ensure that the strategic national interest of Ghana is guaranteed, an Inter-Ministerial Review Committee chaired by Justice Emmanuel Akwei Addo was inaugurated on 18th May 2009 to review the Vodafone transaction.

The Committee's Terms of Reference was to examine all issues relating to the management and finances of GT from the tenure of the Telenor Management Partners which later metamorphosed into Telecom Management Partners to the period of the sale of 70% shares of GT to Vodafone; and an examination of the terms and conditions of the SPA, the contract with the transaction advisers and issues after the sale.

The Committee has since presented its report to government through the Ministry of Communications.

Government takes this opportunity to thank the members of the Committee for diligently applying themselves to the task and for their sacrifice and good work.

The Committee in its report to Government noted that former Minister of State for Finance Dr. Akoto Osei and the immediate past Chief Executive of GT Dickson Oduro Nyaning refused to assist the Committee with information.

While Dr. Osei flatly refused to honour invitations from the Committee, Mr. Oduro Nyaning said he could not provide the information and explanations the Committee required for personal reasons.

The Committee received testimony from a sitting Member of Parliament that the majority side in Parliament at the time was bribed or improperly incentivized to endorse the Vodafone agreement.

The Committee was of the view that if found to be true, the entire validity of the process would be called into question and would be contrary to the criminal laws of Ghana particularly Sections 240 and 244 of the Criminal Offences Act, 1960 (Act 29) which prohibits corruption of public officers.

The Committee did not have the powers and resources to investigate these claims and therefore refrained from making findings on this specific allegation.

The Committee found among others that:
1. Most of the terms of the SPA are inimical to Ghana's interest. For example, Article 6.1.6 provides that

"There shall not be any injunction or other order that prohibits/restrains the sale of the sale shares by GoG to the Purchaser in particular or generally."

The Committee noted that there cannot be any law that ousts the courts' jurisdiction and any agreement that purports to do that is null and void and of no effect.

Article 10.7 provides that
"GoG hereby waives, and undertakes that it will not at any time bring, any claim or prosecution against any member of the Enlarged GT Group or any post-Closing directors in respect of any act of any such member or director relating to the Anti-Corruption Warranties which arises from or otherwise relates to the period prior to Closing."

It is the Committee's view that the Government of Ghana cannot waive or make any such undertaking not to prosecute anyone who might have committed an offence. Absolutely nobody can contract out of the criminal law and Vodafone knows this very well. The Committee found it amazing that the previous Government agreed to a term like this one.

2. The SPA in its negotiation and ratification breached many laws of Ghana including the 1992 Constitution, the National Communications Authority (NCA) Act and Regulations, and the Internal Revenue Act 2000 (Act 592) of Ghana.

3. The allocation of a 3G license under the SPA was not in compliance with the NCA Regulations 2003 (L.I. 1719) which stipulates that such a license may only be granted by public tender where the unassigned frequencies are limited, as is the case with 3G licenses.

4. The indemnity clause in the SPA is not balanced as it seeks to protect the interests of the buyer and not the mutual interests of both parties. Continued    Source: GNA - Ghana News Agency