Former Vice-Chancellor of the University of Ghana, Professor Ernest Aryeetey, says he did no wrong in the negotiation of the $64 million agreement the university entered into with a foreign company for the construction of some structures for the school.
According to him, the accusations made by the Minister of Education, Dr Matthew Opoku Prempeh over the deal is an attempt to tarnish his image.
The Minister of Education on Monday stated in an interview on Accra-based Peace FM that the university risk being privatized if it fails to meet its obligations of the $64 million agreement it entered into with a private company, Africa Integras.
According to him, the university is expected to pay a total amount of 10 million dollars to Africa Integras every year for a period of 25 years; adding however that the school had in recent times defaulted in the payment – a situation he believes could lead to the school’s assets being seized.
But Prof. Aryeetey in a statement has said the Minister’s claims are “further from the truth”, adding that the University of Ghana under his leadership did not borrow such an amount.
Below is the full statement
The Vice Chancellor of University of Ghana and the Minister of Education of Ghana are trying very hard to make the world believe that I led the University to borrow $64.4 million to build a students hostel. Nothing could be further from the truth. The University of Ghana never borrowed any such money!!!
What they have both failed to understand is that the University entered into a concession agreement with Africa Integras, an American company, to build 5 structures at Legon at a total cost of $64.4 million. Africa Integras borrowed a part of that money from the US government agency, Overseas Private Investment Corporation (OPIC). The rest of the funds came from the private company WP Carey as its equity in the deal. The project was to be undertaken on a “Build, Operate and Transfer” basis. What this meant was that Africa Integras would own the buildings and rent out space in them to Legon. The University was not going to rent simple empty space. The space was going to be fully furnished and equipped for teaching and research purposes. It included modern state of the art and well equipped laboratories for the science units of the university. And all of this was going to be maintained and managed by Africa Integras for 25 years at agreed high standards. This is what the VC and the Minister have deliberately refused to tell the world for reasons best known to them.
The University undertook extensive feasibility analysis of the project through its Business School and concluded that using the BOT approach was far better than borrowing directly. The agreement provided for various ways in which the University could finance its annual rent payments. Without exploring these financing options, the new University management had concluded that it cannot afford the project. In order to justify the VC’s lack of interest in the project, he has told one lie after the other. Unfortunately people who should be more discerning, have believed him without subjecting the agreement and the processes leading to it, to any proper scrutiny.
l am convinced that the agreement was in the best interest of the University in order to solve its many space and modern technology problems. This is especially so since it provided for discussion and renegotiation at a future date at the request of either party.
The Minister also made the point that the Government of Ghana was kept in the dark about the project. This is clearly false and we can easily prove that.
I can assure the whole world that nothing illegal, immoral or irregular occurred in the negotiation of this deal. I was never offered any incentive whatsoever by the parties we negotiated with. And I never asked for anything!
I believe that the deliberate effort to tarnish my image is driven by other issues and differences that have nothing to do with this project. Stopping the project, as UG has done, is not only going to deprive Ghanaian students of modern learning facilities, but going to add several millions of dollars to the cost unnecessarily. It is the hope of the Minister of Education and the University Management that when that happens, they can conveniently blame Ernest Aryeetey for it.
I trust fully in the Good Lord to show Ghanaians the truth. I also hope that other persons who know the truth will find the courage to speak out publicly.
Ernest Aryeetey
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Just come out with 'the whole truth' for all Ghanaians to judge if the contract is good or bad. The Minister was absolutely right to admonish Public Universities not to sign terrible contracts. Just tell Ghanaians all the hidden conditions ........ Truth must be told in full.
Must we be bastardizing each other in the name of politics? I get sick when it involves the intellectuals. This ***barred word*** must stop aaaaabbaa
What you did to others is being done unto you. Arrogance does not pay. Now you want sympathy !!!!
Not dwelling into the matter. this is normal politicians either gone through the life mill or not tends to disrespect professional academicians. its normal
Just a simple question, where was the current VC when Prof. Aryeteey was taking all these decisions and also where were other members of the Uiversity Council?
Prof you have done Ghanaians no good without evidence. Your statement is a bit hollow, if you have decided to court public sympathy, you must provide some level of evidence for the public to believe in your version of the story. The crust of the minister's argument surrounds the 10million for 25yrs issue. You have not provided any argument to debase that. For me the minister is right. You keep mentioning that people in authority are trying to tarnish your image, you care alot about your image, but public wants to know details of the transaction not your image please.
This long statement never tell us the rent the University will pay for the facility..... Paying that rent for 25 years might be too costly for the university.... This is a use.l.less statement from Prof Ayeetey........ The whole project must be investigated fully by govt and final decision taken....
If you did no wrong then where is the $64m? Is the project complete? This Prof is now trying hard to redeem his damaged image.... Prof just accept that you signed a bad contract......
I listened to the Minister, and I don't think he said anything wrong so as to tarnish your image if even you have any.If by the Minister's contribution you feel appealed to make a statement, just feel free to do so. Then, the honorable Minister was always referring to the University of Ghana in the matter but not her former Vice-Chancellor.Please if you feel you should say something as a former Vice-Chancellor, just go ahead to do so without implicating anybody of-of wrongdoing.
Prof. just keep mute, prosperity will judge us all.It is a systematic plan just to take over the university hospital.It is a plan that those who see through it know what they r about.Gradually trying to get public support after the back lash by the ill decision by the ministry of health.