"Balkan Contract Is Unintelligent And A Rip-Off...Ghana To Lose $1.5 Bn

A former Deputy British High Commissioner to Ghana, Craig Murray says Ghana will eventually lose over 1.5 billion dollars from its contract with America�s Balkan Energy unless the agreement is immediately abrogated. Ghana�s Energy Ministry entered into the contract with Balkan energy about four years ago under the erstwhile Kufour administration. Balkan, under the contract, is to repair and operate the Osagyefo barge to produce power. Balkan, per the agreement, will charge the government of Ghana 4.8 cents per kilowatt hour of electricity produced. That amounts to 35 million dollars a year. Government will also pick the fuel cost incurred by Balkan under the agreement. Mr. Murray questioned the competence of Ghana�s negotiator(s) in the deal. �It could be that the person who negotiated the agreement for Ghana was extremely, extremely stupid and an incompetent person, either way this agreement must be abrogated or it is going to cost Ghana 1.5 billion dollars.� He thought. He told Citi Breakfast Show host, Bernard Avle, the agreement is a rip-off which is extremely detrimental to the already burdened poor Ghanaian tax payer. He said Balkan will end up raking huge profits from Ghana�s own resources due to what he described as a very unintelligent contract which must be abrogated immediately. �They are charging the government of Ghana 45 million dollars a year for providing electricity from a plant which already belongs to Ghana�the agreement was entered into about three or four years ago�It is hard to think whether the agreement was negotiated by somebody extremely stupid or someone corrupt� Mr. Murray said. Mr Murray recently took on the current British High Commissioner to Ghana, Dr Nicholas Westcott over some comments which sought to create the impression that the Government of Ghana needn�t investigate contracts signed between the country and some British or Western companies such as Vodafone during the previous administration. He said Dr Westcott�s position portrays British hypocrisy in dealing with corruption allegations in cases where British and other Western companies� interests are at stake. He cited the contracts between the Government of Ghana and Zakhem to buttress his point. Ghana�s power producer, Volta River Authority (VRA) bought turbines from manufacturer, Alsthom for 70 million dollars and then paid Zakhem 80 million dollars upfront to install the engines at Kpone, about a mile from the Tema roundabout. Zakhem was also to provide ancillary equipment for the power station but has failed to execute the contract three years on. He alleged that the British company has rather succeeded in stealing tens of millions of dollars from poor Ghanaians with the connivance of Ghanaian politicians, civil servants and engineers all of whom he claimed were bribed along the chain of events. �People must ask how 80 million dollars was paid over before the contractor even started his work�80 million has been handed over and nothing has been done at all and that sickens me because I am very fond of Ghana. Those are taxes of ordinary Ghanaian people�and for that to be stolen by crooks like Zakhem makes me very very sad.� He said. Mr Murray said the issue of corruption by British and Western companies operating in Ghana is not limited to any one political party or Government administration. He cited one contract between Ghana and International Generics Limited over the construction of the La Palm Hotel during the NDC�s first administration. He claimed that there was huge amount of corruption involved in that contract. The former Deputy High Commissioner added that it is important successive Governments investigate their predecessors rather than turn a blind eye to the endemic corruption as apparently suggested by Dr Nicholas Westcott. Mr Murray said the difficulty by subsequent governments to investigate previous administrations is due to the fact that the contractors not only bribe the politicians at the helm of affairs but also corrupt many officials all the way down the chain including civil servants and engineers. He noted that there are many foreign companies who make a lot of money through corrupt contracts in Africa. He however added that Ghana�s situation is better than most countries in Africa but warns that the country risks becoming like Nigeria in terms of corruption if the tide is not stemmed. The entire political system in Nigeria is perceived to be gravely corrupt. Politicians of all parties in that country are seen as people who are only interested in stealing millions of dollars from the poor tax payer. The UK Foreign and Commonwealth Office has in a response posted on its website the UK from Craig Murray's allegations.