Agbodza demands prosecution over $2m pumped into Sky Train company

The 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 off a $2 million dollar investment in a Sky Train venture.

According to Governs Agbodza, due diligence and the required feasibility studies were not conducted before the project started.

Addressing the press in Parliament, Governs Agbodza indicated that the transaction is illegal and those behind it must face the law

“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.

The Auditor General in his 2021 audit report flagged the $2 million investment and called for monitoring of the project.

In the report, it emerged that Africa Investor Holdings Limited incorporated a Special Purpose Vehicle (SPV) in Mauritius for the purposes of establishing Ghana Sky Train Limited, to develop the Accra Sky Train Project through a concession on Design, Build, Finance and Operate arrangement.

According to the Auditor General’s report, the 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).

Thus, the premium paid for each share was US$199,999.

The SPV reported a net liability on 31 December 2020.

Ai Sky Train Consortium Holdings is yet to obtain the licence for ‘Aeromovel Technology’, required for the Sky Train Project.

Feasibility studies that will better inform the project economics and required approvals from the Cabinet of Ghana and the Parliament of Ghana are still ongoing.

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 licencing, 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.

Source: Citi Newsroom