The Minority Caucus in Parliament has expressed grave concerns over the New Patriotic Party administration’s decision to allocate Ghana’s 5G spectrum to Next Gen Infraco Company Limited.
The Caucus, led by its Leader and Member of Parliament for Ajumako Enyan Esiam Constituency, Dr Cassiel Ato Forson, in a statement, outlined several critical points of contention, labelling the arrangement as non-transparent and detrimental to national interests.
“Under this deal, Next Gen Infraco Limited has been given the exclusive right to build, own and operate the entire 5G infrastructure network across the country, for the use of all mobile network operators, internet service providers and other interested ones.
“It is instructive to note that executive approval was granted by President Akufo-Addo for this sweetheart deal on 22nd August 2023, barely one week after the company’s incorporation on 16th August 2023”.
Minority Leader, Dr Cassiel Ato Forson
Among several contentious issues, the Minority Leader, Dr Cassiel Ato Forson strongly asserted that the transaction between the Government of Ghana and Next Gen Infraco Company lacked value for money.
He recounted that a conservative analysis by the Minority reveals that the state could have earned between USD 400 million to USD 500 million through a competitive process instead of the government settling for a mere USD 125 million, payable in yearly instalments over the next decade.
Dr Ato Forson further posited that these funds could have been directed toward crucial development projects during these challenging economic times.
Unfair Monopoly and Exclusivity
Furthermore, the Minority Caucus in Parliament contended that the agreement would bestows Next Gen Infraco with a monopoly, making it the sole provider of wholesale 5G mobile data and voice services in Ghana for ten years.
This arrangement, he noted forces existing Mobile Network Operators including MTN, AT, TELECEL, and Internet Service Providers (ISPs) to route their services through Next Gen Infraco, adding that the agreement would undermine the operations of the existing Mobile Network Operators.
“NEXT-GEN INFRACO would control a substantial 62.5% of every DATA/VOICE bundle package every mobile user buys, with only 7.5% going to Government and 30% to Mobile Network Operators and Internet Service Providers.
“We hold the view that the monopoly and exclusive rights granted to Next Gen Infraco under this opaque deal are unfair to other industry players and unacceptable”.
Minority Leader, Dr Cassiel Ato Forson
Absence of Parliamentary Approval
Moreover, the former Deputy Minister of Finance under the erstwhile Mahama’s administration condemned the failure by the ruling government to subject the agreement and the entire 5G transaction to the country’s procurement laws.
He emphasized that even though, the deal, being a multiyear contract, requires parliamentary approval as mandated by section 33 of the Public Financial Management Act 2016 (Act 921), the governing New Patriotic Party administration is almost completed with the deal without Parliament’s consent.
He thus vehemently posited that the failure by the governing New Patriotic Party administration to subject the deal to the country’s procurement laws renders the entire transaction unlawful, null, void, and of no legal effect whatsoever.
Questionable Beneficiaries and Lack of Regulatory Frameworks
In addition, the Minority Leader alleged that some entities in the consortium benefiting from the deal are owned by the “cronies” of President Akufo-Addo and the Minister for Communications, Honorable Ursula Owusu Ekuful.
Describing such entities as “mushroom entities” with questionable track records, Dr Ato Forson emphasized that such entities have previously been involved in similar arrangements that failed to provide value for money.
Dr Ato Forson also argued that the regulatory framework, operational modalities, and guidelines for the entire arrangement have not been clearly defined, accusing the government of rushing to finalize the deal without proper oversight or planning.
“The investment that this Consortium is expected to make to justify its humongous 63% stake in Ghana’s 5G network services revenue has also not been clearly defined.
“The NDC Caucus in Parliament holds the view, that at a time when the country is in dire need of foreign exchange and non-tax revenue, it is unconscionable that the Akufo-Addo/Bawumia government will hand over the precious and highly sought-after-5G spectrum of the country to a shell company for a pittance”.
Minority Leader, Dr Cassiel Ato Forson
The Minority Leader, Dr Cassiel Ato Forson, in a fervent call to action, called for transparency and accountability in the management of the country’s resources and urged the government to reconsider the deal in favour of a more competitive and fair process.
He emphasized that in the coming days, the National Democratic Congress Minority Caucus shall address the media and the public further on the issues, highlighting the need for vigilance and advocacy to ensure that Ghana’s national interests are upheld.
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