Ken-Ofori Atta’s Tentacles Revealed in Ghana’s Eurobond Issues

In what can clearly be inferred as a possible conflict of interest, Databank, a private investment firm owned by the current Finance Minister Ken Ofori-Atta, has featured in all the multi-billion dollar Eurobond issued in the past three year.
The recent US$ 3 billion 40-year Eurobond issued under the auspices of the Ken Ofori-Atta controlled Finance Ministry, lists Databank as one of the co-managers of the debt instrument.
Databank has consistently and curiously been listed as bookrunners or co-managers of Government of Ghana Bonds since 2017 with Ken Ofori-Atta as Finance Minister.
Interestingly, within just three years, the Akufo Addo government is has issued more Eurobonds than all other previous governments combined.
The previous John Kufour administration issued a single Eurobond of US$ 750 million, this was done in the eight-year tenure of that administration. The next administration of John Mills and John Mahama also issued less than three Eurobonds within eight years of their tenure.
However, the Akufo Addo administration has issued an astonishing five Eurobonds in just three years.
 
On the last count, the Akufo Addo administration has issued approximately five Eurobonds between 2017 and 2020. The last one seeking to raise US$ 3 billion was massively oversubscribed by US$ 14 billion.
In the latest Eurobond which is the longest ever issued by a Ghanaian government, Databank is listed as co-managed and would be sharing that responsibility with Fidelity Bank, IC Securities, GCB Bank and SAS Finance Group while the book runners were JP Morgan Chase, Morgan Stanley, Bank of America Merrill Lynch, Standard Bank and Standard Chartered for the bond.
It is unclear how Databank has consistently secured such juicy deals that will accrue to its multi-million dollars in fees and commission. However, critics are clear that this is not unrelated to a possible influence peddling by the Finance Minister who has been fingered in several scandals few years of the Akufo Addo administration.
 
Already, Mr. Ofori- Atta has indicated that the government may soon opt for more such bonds, shortly after the 41-year Eurobond, saying there is nothing wrong with borrowing.
Mr. Ofori-Atta’s stance on borrowing is a stark contrast to promises made when the New Patriotic Party (NPP) was in opposition. The NPP had described racking up debt borrowing as a “lazy man’s approach to governance”.
 
However, the current administration has been the most debt-hungry as it has piled up over GHC 102 billion in three years out of the total debt stock of GHC 215 accrued to Ghana since independence in 1957.