Minority raises red flags over ‘corrupt’ 5G Spectrum deal to one-week old company Next Gen Infraco

The Minority Caucus in Parliament has raised serious concerns over the government’s decision to award Ghana’s 5G spectrum to Next Gen Infraco Company Limited.

The deal, which grants exclusive rights to build, own, and operate the entire 5G infrastructure network across the country, has sparked controversy due to its non-transparent nature and alleged lack of parliamentary approval.

Minority Leader Cassiel Ato Forson in a statement to the media criticized the non-competitive process through which the deal was granted. He described it as a “sweetheart deal” done without any competitive bidding.

Surprisingly, the approval was given by President Nana Addo Dankwa Akufo-Addo just one week after Next Gen Infraco’s incorporation.

The Minority argues that a competitive bidding process could have generated between $400 million to $500 million upfront. Instead, the settled deal amounts to a mere $125 million, payable over ten years.

The Caucus believes this revenue could have been better utilized for critical development projects in a time of economic challenges.

Next Gen Infraco’s exclusive rights give it control over 62.5% of every data/voice bundle package, leaving only 7.5% for the government and 30% for existing mobile network operators (MNOs) and internet service providers (ISPs).

The Minority leader stressed that this monopoly is unfair and detrimental to MNOs and ISPs and stressed that the multi-year 5G Spectrum contract with Next Gen Infraco lacks the required parliamentary approval, rendering it legally questionable.

“The transaction is proceeding without proper scrutiny and we deem it unacceptable,” he said.

Minority Leader Ato Forson alleges that some entities benefiting from the deal are owned by close associates of President Nana Addo Dankwa Akufo-Addo and the Minister for Communications.

The regulatory framework and investment commitments from these entities remain unclear.

The Minority leader emphasized the need for thorough scrutiny of the deal to ensure Ghana’s national interest is safeguarded and pledged the Caucus to collaborate with other stakeholders to uphold transparency and fairness in the transaction.