$2.25bn Kenbond case: Judgement on May 14

The Supreme Court of Ghana has served notice it will give judgement on the controversial $2.25 billion bond on Tuesday, May 14, 2019.

The case is between anti-graft group, the Dynamic Youth Movement of Ghana (plaintiffs) and the Finance Minister, Ken Ofori-Atta and the CHRAJ as defendants.

Supreme court judge, Mr Justice Gabriel Pwamang, is the sole judge sitting on the case.

Background

It would be recalled that in January 2018 DYMOG dragged CHRAJ to Court for overstepping its limits in the controversial 2.25 billion-dollar bond issued to FT. DYMOG sued the Commission for clearing the Finance Minister of the allegation of conflict of interest in relation to the issuance of the government bond.

The group had claimed that CHRAJ, in reviewing a petition on the controversial bond, decided to make some assertions on the matter that are ‘totally’ out of context thereby infringing the provisions of the 1992 constitution.

DYMOG in their lawsuit contended that the Finance Minister in issuing the $2.25 billion bond to Franklin Templeton placed himself in a conflict of interest situation because one of the directors of the US-based investment group Trevor Trefgarne was also a director of a company, Enterprise Insurance, owned by the Minister.

Among the reliefs, the group is seeking include, “(a) declaration that by going beyond investigations to make a pronouncement (of guilty or otherwise) on the 1st Defendant in respect of the allegation of breach of conflict of interest, the 2nd Defendant has contravened Article 287 of the 1992 Constitution.

“(b)A declaration that by interpreting Article 284 of the 1992 Constitution (as disclosed between paragraph 3 of page 127 and paragraph 3 of page 133 of the Report) the 2nd Defendant has contravened Article 130(1)(a) of the 1992 Constitution.”

DYMOG is also seeking a declaration that “by issuing or overseeing the issuance of the said bonds to Templeton without disclosing his relational interest with a director at Templeton, one Trevor G. Trefgarne, the 1st Defendant has acted in contravention of Article 284 of the 1992 Constitution.”

Mr Ken Ofori-Atta, in February 2017, while the Akufo-Addo Government was still trying to jostle into place during the first 100 days grace period, hurriedly issued a bond on the blind side of everybody, including Parliament and the Attorney General.

At the time he issued the whopping $2.25billion bond to Franklin Templeton, President Akufo-Addo had not yet constituted his Cabinet, neither was there a Board in place at the Securities and Exchanges Commission (SEC) which was mandated to police such transactions.

As bizarre as the rash issuance was, Ghanaians were to later learn that Franklin Templeton, which had bought 95% of the bond, was connected to the Finance Minister. Hon. Trevor G. Trefgarne, a director of Franklin Templeton, was also the group Chairman of Enterprise Insurance which is owned by the Finance Minister.

The scandal was a major talking point in the country for months with many Ghanaians feeling that Ken Ofori-Atta to use Ghana to build wealth for himself and his cronies. However, when he was reported to CHRAJ, the Commission came up with the conclusion that Ofori-Atta had not conflicted his interest in the scandal.

The Minority in parliament has also petitioned the Security Exchange Commission (SEC) of America. And are still waiting patiently to receive favorable news.