The contract was valued at US$178 million over ten years
Kelni GVG has become a topical issue recently after the Minister of Communications, Samuel Nartey George, announced that the government would not renew the contract due to unsustainable costs.
GhanaWeb Business, in this article, sheds more light on Kelni GVG contract and its associated controversies.
The contract, valued at US$178 million over ten years, was signed in 2018 between the Government of Ghana and Kelni GVG, a Haitian ICT firm.
The firm was tasked with developing and implementing a Common Monitoring Platform (CMP) to track international inbound calls and prevent revenue leakage within the telecommunications sector.
On Thursday, May 31, 2018, Parliament approved the implementation of the Kelni GVG contract with the Ministry of Communications and the Ministry of Finance to Build, Operate, Manage, and Transfer (BOMT) a Common Platform (CP).
In a statement to Parliament, the then Minister of Communications, Ursula Owusu-Ekuful, asserted that the US$89 million contract was the best deal for the country.
However, the National Democratic Congress (NDC), which was in opposition at the time, raised concerns about the contract’s transparency and procurement process.
The party described the contract as a “money heist” orchestrated by the Akufo-Addo government to exploit taxpayers.
Policy think tanks, including IMANI Africa, were also among the critics of the deal. These critics argued that the agreement lacked value for money and posed risks to data privacy.
Key points raised by critics of the Kelni GVG deal
Lack of Transparency: Critics argued that the government rushed into sealing the deal with Kelni GVG without conducting adequate due diligence. They claimed the entire procurement process lacked transparency.
Cost Concerns: Critics stated that the cost involved, US$178 million over ten years, was excessively high and unjustifiable.
Value for Money: Policy think tanks like IMANI Africa questioned whether the deal provided value for money, suggesting that similar services could have been procured at a lower cost.
Privacy Issues: Concerns were raised about data privacy, as the platform involved monitoring telecom traffic.
No Track Record: Critics pointed out that Kelni GVG lacked a proven track record in monitoring the revenue of telecommunication networks.
Disproportionate Financial Benefits: Reports indicated that Kelni GVG earned 84% of the revenue generated under the contract, raising questions about the sustainability and fairness of the arrangement.
These criticisms, along with the Mahama-led government’s concerns through the Ministry of Communications, were cited as reasons for not renewing the contract.
SA/MA
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