Refund botched Sky Train $2m project, it's organised crime – Minority caucus

Minority Caucus in Parliament is calling for the refund of $2 million paid in 2019 as a premium for the acquisition of ordinary shares for the Accra Sky Train Project.

The Auditor General's 2021 report labeled the transaction a net liability.

The payment was made through the Ghana Infrastructure Investment Fund (GIIF), which acquired 10 ordinary shares in the Special Purpose Vehicle (SPV), Ai Sky Train Consortium Holdings, valued at the aforementioned amount.

Speaking to journalists in Parliament, Governs Kwame Agbodza, Minority Chief Whip and Ranking Member on the Roads and Transport Committee, demanded that the amount be returned to the government's treasury. He raised concerns about the lack of necessary approvals for the project and questioned the decision-making process behind the payment, suggesting that it may have involved organized crime. Agbodza specifically mentioned Dr. Bawumia, Chairman of the Economic Management Team, who he claimed was aware of the improper payment.

The Accra Sky Train Project, initially announced by President Akufo-Addo in 2017, has faced ongoing challenges. A draft stage assessment of GIIF's risk management issues revealed that the project's policy is still in draft form. In 2018, Africa Investor Holdings Limited established the Ghana Sky Train Limited, a Special Purpose Vehicle (SPV) based in Mauritius, for the development of the Accra Sky Train Project under a Design, Build, Finance, and Operate arrangement.

The current Minister for Railways Development, John Peter Amewu, has indicated that the government is unable to deliver sky trains to Ghanaians as previously anticipated due to fiscal constraints. He stated that the project cannot be implemented in the next three to four years due to the significant capital required.

Agbodza described the arrangement as organised crime and called for the refund of the $2 million.

He criticised the lack of proper feasibility studies and accused decision-makers of being careless and reckless with public expenditure.

Transport Minister Kwaku Ofori Asiamah, during the ministerial vetting process, mentioned that processes were still ongoing for the construction of the sky train project. However, the Auditor General's report highlighted the limited progress in terms of feasibility studies.

Despite receiving the payment in February 2019, the Ai Sky Train Consortium Holdings, the SPV, has yet to obtain the necessary license for the "Aeromovel Technology" required for the project. The Auditor General's report also identified that GIIF lacked certificates of ownership for equity investments in three companies totaling ¢146.6 million and advised management to obtain the appropriate certificates.

The concession agreement for the project was signed with South African firm Africa Investment (Al) in November 2019, with a cost of $3 billion. Construction was originally scheduled to commence in January 2020, aiming to alleviate traffic congestion in Accra.

Source: classfmonline.com