The Communications and Digitalisation Minister, Ursula Owusu-Ekuful has confirmed that NextGen InfraCo Ltd, the Company Behind the 5G Network Rollout, was established Only a week Before the Contract was awarded.
According to Owusu-Ekuful, the company was deliberately established for this specific purpose, as there was no existing neutral infrastructure company with the capacity to handle the rollout at the time.
During a press conference on the 5G rollout, she provided further insight into the government’s decision behind this move.
The Minister explained that the decision not to auction the contract was influenced by previous difficulties and setbacks that had impeded the rollout of 4G technology.
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“To date, 4G has only managed to reach 15% of the population nationwide since its introduction seven years ago”, she indicated.
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According to her, the government’s approach of directly awarding the contract to a newly created entity is intended to avoid repeating past mistakes and expedite the rollout of the 5G network.
The Member of Parliament for Ablekuma West shed light on the government’s approach, stressing the necessity of a specialized infrastructure company to guarantee a seamless and efficient 5G technology rollout nationwide.
“This is a special purpose vehicle and once the government took the decision that we will use a neutral infrastructure company to deliver this service, there is no existing neutral infrastructure company that can deliver it at the moment,” she said.
She added that the reason for taking such a decision was as a result of previous experiences.
“So, it had to be specifically formed for the purpose of delivering this service based on the strategic policies and decisions of the government, and it is borne out of our experiences and that is why we chose not to auction it,” she stated.
This confirmation comes amid concerns raised by investigative journalist Manasseh Azure Awuni about the contract awarded to NextGen InfraCo Ltd.
On Thursday, May 30 2024, Mr Azure took to Facebook to reveal that the company, Next Gen Infraco Ltd., was incorporated mere days before President Akufo-Addo gave the green light for the deal with executive approval.
According to him, the timing is suspicious, given the importance of the contract.
Mr. Awuni criticized the contract awarding process, pointing out that the deal, worth hundreds of millions of dollars, was given to a single company without allowing others to compete for the project.
He added that the lack of competitive bidding raises suspicions about the transparency and fairness of the procurement process.
