Franklin Cudjoe, the President of Imani Ghana, has said that the Government of Ghana must stop paying KelniGVG $1.5m every month for no work done and save that money to deal with the effect of the coronavirus on the economy .
Kelni-GVG was awarded a 10-year contract worth $178 million by Ghana to help block revenue losses in the telecommunication sector and simbox fraud.
However, the IMANI Boss, who opposed the Kelni-GVG deal when it was introduced , said , in a statement on Thursday April 2 regarding efforts by the government to raise funds to deal with the COVD-19 , that : “Nearly 10 million Americans lost their jobs in two weeks. Most likely 40m in a few weeks. When I see these figures, then I realise how miserable we would be in Africa especially as investors pull their funds. Where will help come from after the World Bank money is finished while the virus rages on?
‘We will have to defer some wasteful aspects of projects such as ghost dams, $150m EC new register, stop paying KelniGVG $1.5m every month for NO work done ( you can add to the list) and find a good way of keeping oil companies whose fortunes have now plummeted.”
The IMANI Boss added: “To do the latter, the following should be considered if we need to retain the interest of oil companies in order to save jobs.
Move royalties from a fixed percentage to a percentage linked to the movement of oil prices. The royalty is pegged at current lower prices with an agreement to be graduated at par when prices increase over time? Of course this must be transparently done with the involvement of all relevant stakeholders and not at the energy minister’s sole discretion.
“Move from Carried GNPC’S interest to financed GNPC interest so that the investors get paid back the costs they sponsor GNPC with. This could even give the GNPC additional shares in the fields. Here again, this must be done transparently with stakeholders involvement especially the CSOs.
“Move from a fixed withholding tax rate to a withholding tax rate dependent on oil price. Here again, at any point in time this is done, all relevant stakeholders must be involved and not left at the mercy of the minister.”