Ghana’s Auditor General fears the country would not be able to recover $2million spent on purchasing shares in Mauritius based Ai Sky Train Consortium Holdings if the Accra Sky Train Project fails to secure licensing, and executive and parliamentary.
The Auditor General in his report of the Public Accounts of Ghana – Public Boards, Corporations and other Statutory Institutions for the Period ended 31 December 2021 described Ai Sky Train Consortium Holdings of the Accra Sky Train Project as a Special Purpose Vehicle incorporated on 11 December 2018 in the Republic of Mauritius by Africa Investor Holdings “for the purposes of establishing Ghana Sky Train Limited to develop the Accra Sky Train Project through a concession on Design, Build, Finance and Operate arrangement.”
According to the Auditor General the Ghana Infrastructure Investment Fund on 25 February 2019 paid US$2million to Africa Investor Holdings Limited “as full consideration for 10 ordinanry shares at US$1.00 per share in Ai Sky Train Consortium Holdings of the Accra Sky Train Project (the SPV). Thus the premium paid for each share was US$199,999.”
The Auditor General in the report fears Ghana stands the risk of losing this US$2million as “Ai Sky Train Consortium Holdings is yet to obtain the license for ‘Aeromovel Technology’, required for the Sky Train Project.”
“Feasibility studies which will better inform the project economics and required approvals from the cabinet of Ghana and the Parliament of Ghana are still ongoing,” the Auditor General stated.
The Auditor has therefore advised the Ghana Infrastructure Investment Fund “to continue monitor the feasibility and the recoverability of the investment in the SPV and make the necessary provisions based on the outcome of the feasibility studies.”
Some experts have already dismissed the project as implausible and a pipe dream.
Government represented the Joe Ghartey led Railways Ministry in November 2018 signed a $2.6billion deal with South Africa based consortium, Africa Investment SkyTrain Consortium to build sky trains in Accra.
The Consortium was composed of Development Bank of South Africa and Canadian engineer WSP Parson Brinckerhoff.
Source: Radiogoldlive.com
