A leaked Ghanaian government report, seen by the BBC, claims last year’s sale of a 70% stake in the country’s incumbent fixed line operator Ghana Telecom (GT) to the UK’s Vodafone Group was ‘unconstitutional and illegal-, and did not represent good value for money. In July 2008 Vodafone confirmed that it had agreed to acquire a 70% stake in GT for USD900 million on a debt-free, cash-free basis. The deal implied a total enterprise value for GT of approximately USD1.3 billion, with the state retaining a 30% stake in the company. However, the leaked report alleges that the fixed line operator was undervalued and that the actual price paid by Vodafone was less than USD267 million. Further, it accuses parliament of acting unconstitutionally in approving the deal without due process, and alleges that as a result of ‘a complicated series of financial arrangements’ the actual price released was far less than the stated asking price.
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