The Ministry of Finance and Economic Planning has stated that Databank and Black Star Brokerage form part of some nine firms that have been selected by the Bank of Ghana and Ministry of Finance as Bond Market Specialists. The seven other firms include Ecobank, Stanbic Bank, ABSA, Cal Ecobank, Stanbic Bank, ABSA, Cal Bank, GCB Bank, Fidelity Bank and IC Securities. A statement issued by the Ministry on 1 June 2021 in reaction to claims by Bolgatanga Central MP Isaac Adongo that Databank and Black Star Brokerage, owned by the Minister of Finance, Mr Ken Ofori-Atta and Minister of State-designate at the Finance Ministry, Mr Charles Adu-Boahen, respectively, have been appointed advisors to the Ministry, said the opposition lawmaker got it wrong. The statement explained that the selection of the nine firms was solely based on their historical performance on the bond market. It said “both Ken Ofori-Atta and Charles Adu Boahen are no longer involved, in any way, with the day-to-day operations of either Databank or Black Star. Mr Adu Boahen resigned from the Board and from management of Black Star back in January 2017, immediately after he was nominated by the President as one of his Deputy Ministers of Finance”. “He also transferred his shares in the company to a family trust on assumption of public office. Mr Ofori-Atta resigned as Executive Chair of Databank in August 2012 and resigned from all the Databank Boards in February 2014”. The statement further debunked claims that “the three advisors, including Databank and Black Star, stand to make more than GHS210 million in fees”, describing the assertion as “inaccurate, misleading and intended to procure cynicism against the process”. In his article, Mr Adongo said “Ken Ofori-Atta and Charles Adu Boahen have contracted their own companies to be transaction advisors to themselves and decided how much they should pay their own companies”. “This transaction is tainted with potential insider-trading and conflict of interest. They killed competition and set a new low in fiduciary standards and an empty lawyer is celebrating this new normal?” Read the Finance Ministry’s full statement below: Response to social media article on firms of Ofori­-Atta, Adu Boahen appointed advisors to Finance Ministry The attention of this Ministry has been drawn to an article circulating on social media headlined, ‘Firms of Ofori Atta, Adu Boahen appointed advisors to Finance Ministry’. The story relates to the development of Ghana’s domestic market for government bond issuance which is a key debt strategy in accordance with Section 58 of the PFM law and a recent public notice issued by the Bank of Ghana titled “Licensed Primary Dealers (PDs) and Bond Market Specialists (BMSs). This Ministry would like to state that the selection of the Primary Dealers [PDs] and Bond Market Specialists [BMSs] is an automatic process based on market performance and historical secondary market trading activity which is publicly available and cannot be manipulated by the Ministry of Finance [MoF] or the Bank of Ghana [BoG]. Since 1996, the Ministry of Finance with the Bank of Ghana has developed and implemented various policies which affect the issuance and trading of Government of Ghana debt securities (Treasuries and Bonds). The ultimate objectives of these policies are to develop an efficient fixed income market, strengthen the capacity of local institutions and deepen financial intermediation. Based on this background, this Ministry would like to clarify the matters arising as follows: 1. It is our understanding that the firms in question that the story refers to are Databank and Black Star Brokerage. The Ministry would like to state that the claim that these two firms have been appointed as advisors to the MoF is incorrect. 2. Databank and Black Star Brokerage are two (2) out of nine (9) firms that have been selected by BoG/MoF as Bond Market Specialists and not Advisors to MoF, the other firms selected to be BMSs are – Ecobank, Stanbic Bank, ABSA, Cal Bank, GCB Bank, Fidelity Bank, and IC Securities. As stated above, the selection of the firms was solely based on their historical performance on the Bond Market and no other consideration. 3. Primary Dealers (PDs) are institutions authorised by the Bank of Ghana (BoG) and have the exclusive right to participate in the wholesale auctions of Treasury Bills. Bond Market Specialists (BMS) are PDs that have the exclusive right to participate in the sale, distribution and primary issuance, by auction or otherwise, of all GoG Treasury bills, notes and bonds. The selection process for firms to act as PDs and BMSs is based only on merit. The Ministry of Finance or the Minister and/or his Deputies have absolutely no hand in the selection process. The process cannot also be subject to any manipulation as it is based solely on historical data of trading and performance which is a matter of public knowledge on the bonds market. 4. The key criteria for the selection of the nine firms was based on secondary market fixed income trading operations. This benchmark is critical for market making in bonds and was instrumental in the selection of the 9 firms out of the 17 PDs for the additional role of BMS. The nine firms have been categorised as follows; international banks (not less than 3 firms), domestic banks (not less than 3 firms) and non-bank financial institutions (not less than 3 firms). 5. Secondary Market fixed income trading data for non-bank financial institutions, which is publicly available put Blackstar Securities as the highest trader by value for the period of assessment. IC Securities and Databank placed second and third in the rankings respectively. This information is publicly available from the GSE but for ease of reference has been reproduced here. 6. It is the opinion of the Ministry of Finance and the Bank of Ghana that this selection process rewards meritocracy, ensures transparency in the selection process and provides this Ministry with a selection of highly capable and motivated institutions with the opportunity to become Primary Dealers and BMSs if they perform.