Ken Ofori-Atta clarifies Obotan Sale

Investment banker, entrepreneur and equity investor, Mr Ken Ofori-Atta, has described as ‘false and malicious’ reports in sections of the media that the planned gated community project, popularly known as ‘Obotan Project’ was not a credible venture.

He said there was no basis for alleging that the project was fraudulent, adding that Social Security and National Insurance Trust (SSNIT), which took majority stake in the residential development project, was not defrauded of their investment in any shape or form.

Mr Ofori-Atta said in a press statement, a copy of which was made available to the Daily Graphic, that at the time the pension fund manager wanted to divest its interest in the Obotan Project, its entire equity was purchased by Databank Financial Services and the money paid in full by a Deed of Transfer in 2007.

The statement was warranted by what he described as “orchestrated attack against my person and the Obotan Project” in recent times which had subjected him to “a deliberate, politically motivated, unpatriotic, and shameful campaign of harassment and defamation at the hands of certain government officials, journalists and media outlets.”

Background to Obotan Project

Giving a background to the project, Mr Ofori-Atta, who co-founded Databank Financial Services, said the project was a proposed construction of a gated community on the Independence Avenue in Accra. 

He said a group of investors and promoters, including himself, initiated and designed the concept, which it packaged in search of financial backing from other investors, including SSNIT. The project was in the planning and development stage between 1998 and 2000. 

SSNIT, according to Mr Ofori-Atta, considered the project attractive, primarily due to the location of the land to be used for the development, which the promoters had already purchased.

SSNIT subsequently negotiated and obtained 55 per cent stake in the Obotan Project, although promoters initially offered it 40 per cent shares.

“SSNIT’s board met and agreed to participate in the Obotan Project, subject to obtaining 55 per cent of shares in the project. Obotan Development Limited was incorporated in 1999 (during the NDC administration) with SSNIT being the majority shareholder with 55 per cent of issued shares,” the investment banker stated. 

However, when SSNIT decided to evacuate its interest in the project in 2005, following allegations and investigations into their portfolio of investments from 2000 onwards, SSNIT negotiated the sale of its equity stake in 2005

 SSNIT became beleaguered by allegations. Consequently, the Obotan Project was stalled and during that period we approached them to buy out SSNIT’s equity stake in the project, following an initial failure to respond to a first offer to acquire their shares in the project, which was purchased by Databank.

“It is a matter of fact that SSNIT’s investment was purchased by Databank through a negotiated purchase of their equity interest evidenced by an agreement dated 31st August 2005. Payment under the agreement was made between June 2004 and February 2007,” he said, stating the precise amount paid to SSNIT as $2.22 million, which was the dollar equivalent of the Cedi value paid by SSNIT in 1999 for its shares.

Databank paid an additional $78,680 as interest, thus SSNIT got back every pesewa it invested in the Obotan Project with the equivalent interest.

In return, he added, the national pension fund manager transferred all its shares in Obotan to Databank Financial Services by a Deed of Transfer in 2007, a process witnessed by Mr Ernest Thompson, the then General Manager and General Counsel of SSNIT, who happens to be the current Director-General of SSNIT.

Warning

Mr Ofori-Atta, therefore, considered the references made by certain government officials and journalists as well as reports by some media houses, suggesting criminality on his part as “a diversionary tactic by the government to avoid telling workers where their “pension money is”.

He warned of a legal action against the various publications and persons, who had defamed him and also warned any media house, with intentions to publish further libelous material about him that he would not hesitate to take legal action against them.