Minority Leader Dr. Cassiel Ato Forson has criticised the 5G contract awarded to NextGen InfraCo, raising concerns about its financial prudence.
The government had previously announced that the 5G network would be launched within the next six months.
NextGen InfraCo (NGIC), a consortium that was formed just a week prior to receiving the contract approval, was selected for the 5G rollout.
This consortium includes the government of Ghana and seven other partners: Ascend Digital, K-NET, Radisys, Nokia, Tech Mahindra, AT Ghana, and Telecel Ghana.
However, addressing Parliament on Tuesday, June 11, Dr. Forson said the contract fails to offer sufficient value for money.
He criticized the government for effectively giving away a national asset for a mere $6.25 million, declaring that the “deal stinks to high heavens.”
“This government is surrendering a national asset for just $6.25 million and 1% of annual revenue per annum over ten years on a work-and-pay basis.
“Simply put, Ghana will receive $42.2 million in present value terms assuming the cost of capital is 10% for a national asset that could have accrued up to $500 million upfront.
“This deal stinks to the high heavens, it does not deliver value for money, it short-changes the people of Ghana at a time that the country is in dire need of foreign exchange and non-tax revenue,” Dr Forson said.
Dr. Forson also mentioned that, the Minority Caucus intends to scrutinize the transaction further.
“The NDC Minority Caucus has flagged this deal for further investigation. Lastly, Mr. Speaker, the projections and statistics regarding the food situation in Ghana are concerning,” he added.
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