Governs Kwame Agbodza, the Ranking Member of Parliament’s Roads and Transport Committee, is calling for the prosecution of Ghana Infrastructure Investment Fund officials who approved a $2 million investment in a Sky Train venture.
According to Governs Agbodza, the required due diligence and feasibility studies were not carried out before the project began.
In a press conference in Parliament, Governs Agbodza stated that the transaction is illegal and that those involved must face the consequences.
“I think this is very reckless, and the Auditor General’s recommendation that they monitor and see if they can recoup this money is just a slap on the back of the board and management.”
“I believe the Auditor General should activate and most likely send them to EOCO in order for this money to be recovered,” the MP said.
In his 2021 audit report, the Auditor General highlighted the $2 million investment and called for project monitoring.
According to the report, Africa Investor Holdings Limited established a Special Purpose Vehicle (SPV) in Mauritius in order to establish Ghana Sky Train Limited, which will develop the Accra Sky Train Project through a concession on Design, Build, Finance, and Operate arrangement.
According to the Auditor General’s report, the Ghanaian government paid Africa Investor Holdings Limited US$2 million as full consideration for 10 ordinary shares in Ai Sky Train Consortium Holdings at $1.00 per share through the Ghana Infrastructure Investment Fund (the SPV).
On December 31, 2020, the SPV reported a net liability.
Also read this: Ghana bought $2m shares in Sky Train Company
The Ai Sky Train Consortium Holdings has yet to obtain the ‘Aeromovel Technology’ license required for the Sky Train Project.
Feasibility studies to better inform project economics and required approvals from Ghana’s Cabinet and Parliament are still underway.
The Auditor General stated that the investment in the SPV would not be repaid if the Accra Sky Train Project was unable to obtain licensing, as well as Executive and Parliamentary approvals.
“We urged Management to continue monitoring the feasibility and recoverability of the SPV investment and to make the necessary provisions based on the results of the feasibility studies.”
“Management took note of the recommendation for compliance,” the audit report stated.
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