Funds meant to have gone to government as revenues as a result of its 35-year concession deal with trade facilitation company, Meridian Port Services (MPS), has been reduced by $4.1 billion.
This is according to a special report by Africa Confidential detailing how Bollore Africa Logistics belonging to French business tycoon, Vincent Bollore and MPS won a contract from the government allowing MPS to open a hugely profitable, state-of-the-art container terminal at Ghana’s Tema port in July 2019.
According to the report, some $7.98 billion in fees was to accrue to the Ghana Ports and Harbour Authority (GPHA) over the 35-year life of the concession, but after the Deed of Amendment was signed, it fell to $3.9 billion, a net cost to Ghana of $4.1 billion.
In addition to that, taxes totaling $832 million to be paid by MPS was waived.
According to Africa Confidential, its research indicates that Mr Bollore and his foreign partners persuaded then-President John Dramani Mahama to award MPS a new container terminal contract in secret, with no tender or bids in 2014, violating procurement laws.
He and his foreign partners then overstated the planned investment of $1.5 billion by a factor of two which won tax holidays worth $832 million from an “unwitting parliament.”
Ghana’s equity stake in MPS the report asserts, was surreptitiously cut to 15 percent from an initial agreement of 30 percent by MPS. Government was then further persuaded to give MPS the monopoly on handling containers at the Tema Port and to set tariffs.
Below is the link to the detailed report by Africa Confidential:
(Special Report: How Vincent Bolloré won control of Ghana’s biggest port)
