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The Opposition in Parliament has urged the government to reimburse the $2 million for the Accra Sky Train project. Representing the Opposition, Governs Kwame Agbodza, the Ranking Member on the Roads and Transport Committee, insisted that the funds be returned to the government’s treasury. He argued that the decision made by the board and management of the Ghana Infrastructure Investment Fund (GIIF) was unlawful as it violated Article 181 of the Constitution. This article mandates that any government entity seeking to engage in a financial venture with an international organization must obtain approval from Parliament.
According to the 2021 Auditor General’s report, the government allocated approximately $2 million to the Sky Train project. The report also highlighted that the risk management policy of the Ghana Infrastructure Investment Fund (GIIF) is still in its draft phase.
A report revealed that the feasibility studies needed to determine the project’s economics and get approval from the Ghanaian Cabinet and Parliament are still pending.
In 2018, Africa Investor Holdings Limited established a Special Purpose Vehicle (SPV) named Ghana Sky Train Limited in Mauritius. The purpose of this entity was to develop the Accra Sky Train Project through a concession agreement encompassing design, construction, financing, and operation.
Subsequently, in 2019, the Ghanaian government and the (Ai) Sky Train Consortium of South Africa signed an eagerly expected agreement for the Accra Sky Train project. This initiative aims to introduce a fully automated, highly efficient, cost-effective public mass transit system, utilizing air propulsion technology to propel lightweight, high-capacity vehicles.
Governor Kwame Agbodza insisted on repaying the amount to the government’s funds. He questioned the decision-making process, particularly regarding the lack of cabinet approval, parliamentary approval, and adherence to the Public Procurement Act. He cited the Auditor General’s report, which suggested that the company needed to possess the operating license for the proposed system.
Hence, the critical question remains: Why did the government allocate our $2 million this way? Dr. Bawumia, the chairman of the economic management team, now referred to as the strategist, was identified as the individual responsible for authorizing payment to the Mauritian entity. This decision was made despite the absence of proper public financial management protocols or adherence to the Public Procurement Act, which renders such an allocation of funds inappropriate.
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Source: Omanghana.com
