Who really benefits from Ghana’s GH¢77.73m TraffiTech deal? Key players behind deal exposed

0
16
Cassiel Ato Forson, Frank Osei and Amin Adam

Chairman of Nationwide Group Ghana, Frank Kwame Osei, a businessman with reported political connections across Ghana’s two largest parties, is at the centre of growing controversy over the GH¢77.73 million TraffiTech-GH deal.

An 11-year automated traffic enforcement agreement that has survived a change of government and is now drawing scrutiny over its financial benefits to private investors.

STOP THAT SCAMMER Verify Numbers on TrustGH

Frank Kwame Osei reportedly holds a controlling 60 per cent stake in Nationwide Traffic Management and Enforcement Limited (NTMEL), the private company implementing the programme alongside Swedish partner Sensys Gatso International B.V.

The deal, signed under former President Nana Addo Dankwa Akufo-Addo and endorsed by President John Dramani Mahama, has triggered questions about Osei’s reported political relationships, the involvement of Finance Minister Dr Cassiel Ato Forson, and the decision to allocate 40 per cent of traffic fines collected to the private operator.

Critics are chasing government for answers about the company’s actual investment in the project, the possible use of taxpayer-funded surveillance infrastructure and whether the arrangement prioritises road safety or revenue generation.

Investigations by The Herald into Ghana’s controversial TraffiTech-GH automated traffic enforcement programme have brought businessman Frank Kwame Osei into focus over his reported political connections, business interests and the financial arrangements underpinning the 11-year agreement.

Sources familiar with his business activities describe him as a businessman who has cultivated relationships with influential figures across both the New Patriotic Party (NPP) and the National Democratic Congress (NDC).

His reported relationship with Finance Minister Dr Cassiel Ato Forson has also attracted attention, with sources claiming the association dates back to the first Mahama administration, when Dr Forson served as Deputy Finance Minister under Seth Terkper.

Nonetheless, the precise nature of the Finance Minister’s involvement in the implementation of TraffiTech-GH remains unclear.

The Herald has indicated that the agreement was signed in December 2022 for 11 years, expected to run until December 2033. The arrangement was reportedly facilitated during the tenure of former Transport Minister Kwaku Ofori Asiamah, through connections involving Osei.

According to the Ministry of Finance’s 2024 Public-Private Partnership Report, published during Mohammed Amin Adam’s tenure as Finance Minister, the project involves an estimated investment of GH¢77.73 million.

The agreement provides for the deployment and operation of speed-detection cameras, red-light monitoring equipment, software, and associated systems for processing traffic violations.

NTMEL is owned by Osei, who holds a 60 per cent stake, while Sensys Gatso International B.V., associated with Sweden’s Sensys Gatso Group, owns the remaining 40 per cent.

Also, the programme involves the deployment and operation of speed-detection cameras, red-light monitoring equipment, software and other systems for identifying and processing traffic violations.

However, the most contentious aspect of the TraffiTech-GH deal is the reported allocation of 40 per cent of traffic fines collected to NTMEL.

Reports detail that based on the company’s ownership structure, Osei’s 60 per cent interest would translate into an indirect economic interest equivalent to 24 per cent of total fines, while the Swedish partner’s stake would represent 16 per cent.

Meanwhile, critics have questioned why a private company should receive such a substantial share of traffic penalties when the Ghana Police Service and other public institutions remain responsible for enforcing road traffic regulations.

They argue that the arrangement could create incentives that place revenue generation ahead of road safety.

Additionally, questions have also emerged about the actual financial and infrastructure contributions made by the two private partners, particularly following reports that existing publicly funded national security surveillance facilities may have been incorporated into the programme.

It must be noted that Ghana has invested heavily in surveillance infrastructure through the Integrated National Security Communications Enhancement Network, commonly known as the Alpha Project, implemented in partnership with Huawei Technologies.

According to reports, the initiative began under the Mahama administration and continued under Akufo-Addo. Some accounts have put the cost of the wider infrastructure at more than US$380 million.

Critics want the government to clarify whether equipment already financed by taxpayers is being used by NTMEL and, if so, how that affects the justification for allocating a share of traffic fines to the company.

The Herald further disclosed that Osei’s business interests extend beyond traffic enforcement, revealing that Nationwide Technologies Limited has previously been associated with petroleum product marking services for the National Petroleum Authority (NPA).

The programme helps authorities identify adulterated and diverted petroleum products and reduce revenue losses; however, the cost of fuel marking has periodically attracted public scrutiny because the associated charges are passed on to consumers at the pump.

According to The Herald, Frank Kwame Osei business network dealings date back to the administration of the late President John Evans Atta Mills.

Meanwhile, questions remain about the parliamentary status of the TraffiTech-GH agreement, including whether it received parliamentary approval and the legal basis for its implementation. Critics are demanding publication of the original contract, subsequent amendments, revenue-sharing provisions and any government financial commitments.

Nevertheless, critics insist that the programme must operate transparently and fairly, with safeguards against wrongful penalties, inaccurate speed readings and enforcement in areas where road infrastructure is inadequate.

@ghnow_ Hon. Nii Lantey Vanderpuye arrives to officially file his nomination to contest for the NDC National Chairman position. #GHNow #fyp ♬ original sound – GHnow
@ghnow_ Hon. Nii Lantey Vanderpuye arrives to officially file his nomination to contest for the NDC National Chairman position. #GHNow #fyp ♬ original sound – GHnow

Verify Numbers on TrustGH