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Ranking Member on the Roads and Transport Committee of Parliament, Governs Kwame Agbodza, is demanding the prosecution of officials of the Ghana Infrastructure Investment Fund who signed a $2 million dollar investment in a Sky Train venture.
According Hon. Agbodza, the money was signed away without proper due diligence and even the feasibility studies being completed.
Speaking on the back of an Auditor General recommendation that the money be retrieved and returned to government, he told a news conference that the transaction was actually illegal.
“I think this is very reckless and the recommendation by the Auditor General that they should monitor and find out if they could recoup this money is just a slap on the back of the board and the management.”
“I think that the Auditor General should activate and probably send them to EOCO for this money to be retrieved,” the MP said.
In his 2021 report, the Auditor General flagged the $2 million investment and called for monitoring of the project.
The details entail the fact that Africa Investor Holdings Limited incorporated, a Special Purpose Vehicle (SPV) in Mauritius for establishing Ghana Sky Train Limited, to develop the Accra Sky Train Project through a concession on Design, Build, Finance, and Operate arrangement.
Government of Ghana through the Ghana Infrastructure Investment Fund paid US$2 million to Africa Investor Holdings Limited as full consideration for 10 ordinary shares at US$1.00 per share in Ai Sky Train Consortium Holdings (the SPV). The premium paid for each share as a result was US$199,999.
However, on 31st December 2020, the SPV reported a net liabilit. Meanwhile, Ai Sky Train Consortium Holdings is yet to obtain the license for ‘Aeromovel Technology’, required for the Sky Train Project.
Also Parliamentary and cabinet approval for feasibility studies have not yet been secured.
The Auditor General noted that the investment in the SPV could not be recovered if the Accra Sky Train Project is unable to secure the licensing, and the Executive and Parliamentary approvals.
“We urged Management to continue to monitor the feasibility and the recoverability of the investment in the SPV and make the necessary provisions based on the outcome of the feasibility studies. Management noted the recommendation for compliance”, the audit report recommended.