The Minority Caucus in Parliament, has voiced strong objections to the recent decision by the Akufo-Addo/Bawumia administration to award Ghana’s 5G spectrum rights to Next Gen Infraco Company Limited.
The Minority claims that this decision, made without a competitive bidding process, jeopardizes national interests and represents a significant financial loss for the country.
Next Gen Infraco Limited, a company incorporated just days before receiving the contract, has been granted exclusive rights to build, own, and operate Ghana’s 5G infrastructure for the next 10 to 15 years.
This deal allows the company to provide wholesale 5G mobile data and voice services to all mobile network operators (MNOs) and internet service providers (ISPs) nationwide.
Dr Cassiel Ato Forson, Minority Leader, criticized the deal’s lack of transparency, arguing that it bypasses competitive procedures that could have potentially generated up to USD 500 million in revenue. Instead, the government settled for a USD 125 million agreement payable over ten years, which the Minority claims is a severe undervaluation of the 5G spectrum’s worth.
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The Minority outlined several concerns:
- Lack of Value for Money: A conservative analysis by the Minority suggests that a competitive process could have yielded USD 400 to 500 million upfront, which would significantly aid Ghana during its current economic hardships.
- Unfair Monopoly and Exclusivity: The agreement grants Next Gen Infraco a monopoly, making it the sole provider of 5G services for a decade. This forces existing MNOs and ISPs to rely on Next Gen Infraco for data and voice services, with the company taking a substantial 62.5% of revenue from every data/voice bundle sold, leaving only 7.5% for the government and 30% for other operators.
- Absence of Parliamentary Approval: The deal, classified as a multi-year contract, legally requires parliamentary approval per the Public Financial Management Act 2016 (Act 921). The Minority contends that the deal was pushed through without the necessary parliamentary scrutiny, rendering it unlawful.
- Questionable Beneficiaries: The Minority alleges that some entities within the Next Gen Infraco consortium are owned by cronies of President Akufo-Addo and the Minister for Communications. These entities reportedly lack a proven track record and have been involved in previous government deals that did not provide value for money.
- Undefined Regulatory Framework: The Minority criticizes the haste with which the government has moved forward with the deal, pointing out the absence of a clear regulatory framework and operational guidelines.
- Undefined Investment: The specifics of the investment that Next Gen Infraco is expected to make, justifying its 63% revenue stake, have not been clearly outlined.
The Minority asserts that this deal is a blatant giveaway of a critical national asset at a time when Ghana urgently needs foreign exchange and non-tax revenue. They vow to scrutinize the transaction closely, engage the media, and collaborate with other stakeholders to protect national interests.
“The NDC Minority Caucus in Parliament holds the view that this deal, for all intents and purposes, is inimical to our national interest,” the statement stated.
The Minority plans to address the media and the Ghanaian public in the coming days to further elaborate on their concerns and outline steps to challenge the deal.
