The Minority Caucus in Parliament, led by Dr Cassiel Ato Forson, has described government’s signing of a long-term contract with Next Gen Infraco Company Limited on Ghana’s 5G spectrum infrastructure as illegal and of no effect.
According to the minority, the deal, which granted Next Gen Infraco Limited the exclusive right to build, own and operate the entire 5G infrastructure network across the country did not receive parliamentary approval.
Per the contact, the company’s infrastructure would be used by all mobile network operators, internet service providers and other interested entities for the next 10 to 15 years.
However, the minority, in a reaction to the contract indicated that the deal was a multi-year contract and should, therefore, have been subjected to parliamentary approval per section 33 of public financial management Act 2016 (Act 921).
The minority further contended that the “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”.
A press statement signed by Dr Ato Forson partly reads: “The NDC Minority Caucus has, therefore, flagged this transaction for eagle-eye scrutiny.
In the coming days, we shall be addressing the media and, by extension, the Ghanaian people on these vexed matters and collaborate with other stakeholders to ensure that our national interest is upheld”.
According to the caucus, it is borne out of contention, followed by a preliminary study of the processes leading to the ‘opaque transaction’ which established the deal was inimical to the national interest.
It noted with sadness that the government was ready to give away an important asset for a paltry $125million payable in yearly instalments on a work-and-pay basis over the next 10 years.
The minority disclosed that the deal lacked value for money as its analysis showed that the state could have generated up to USD400 million to USD$500 million upfront if the government had opted for a more competitive process.
This revenue, the caucus noted, could have been channeled into critical development projects in this time of economic bankruptcy and excruciating hardships.
The “Unfair monopoly and exclusivity” nature of the deal, according to the minority, would make the company offer wholesale 5G mobile DATA and VOICE services in the country for a period of 10 years.
It was further explained that all existing Mobile Network Operators (MNOs)-MTN, AT, TELECEL and Internet Service Providers (ISPs) in the country cannot offer DATA and VOICE services to their numerous customers nationwide, without passing through NEXT GEN INFRACO.
This means that the company would control substantial 62.5% of every DATA/VOICE bundle package every mobile user buys, with only 7.5% going to Government and 30% for Mobile Network Operators and Internet Service Providers.
The caucus alleged that the deal did not meet Parliamentary Approval though it was multi-year contract and required parliamentary approval per section 33 of the Public Financial Management Act 2016 (Act 921).
The caucus further alleged that: “Some of the entities in the Consortium, which are the beneficiaries of this opaque transaction are mushroom entities owned by cronies of President Akufo-Addo and the Minister for Communications, with questionable track-records.
“As a matter of fact, some of these entities have been engaged by this same government in similar arrangements that have offered no value for money for the state”.
The regulatory framework and operational modalities and guidelines for this opaque arrangement, the minority hinted, have not been clearly defined by the government.
“The investment that this Consortium is expected to make to justify their humongous 63% stake in Ghana’s 5G network services revenue has also not been clearly defined….
We hold the view that the monopoly and exclusive rights granted Next Gen Infraco under this opaque deal is unfair to other industry players and unacceptable”, the statement emphasised.
