Monday, 21 October 2019

'State capture' scares some investors - Alex Mould


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Adnan Adams Mohammed

The financial and energy expert has reemphasized that, 'State capture' deprives the country the needed and better foreign investment into the economy as it scarce some good people and businesses away from investing in the country.

"'State capture' scarce some people away. It scarce competition away. It only attracts investors who want to partake in 'state capture'. You will see that in areas where actually companies have backed out tenders", Alex Mould, former CEO of GNPC has said when been interviewed on TV3's Hot Issues program last week Saturday.

‘State Capture’ is defined as “the efforts of a small number of people who use their power and influence to change the laws and rules of engagement to amass wealth at the expense of the state by stealing assets.”

The energy expert explain that, the reason why some foreign companies most at times back out of the tenders after they have shown interest, as in the case of the Oil Block Tender Bidding, were six giant foreign oil companies withdrew from the tender in the middle of the process, is because there are laws in their country that stops these things.

"They have laws like the Foreign Anti-Corruption Practice and various countries have various laws that do not allow them to do that. And it is important for us to raise these issues with their embassies and with their governments that these things are being done (state capture), because it takes two to tango."

He further noted that, "You could have people who could influence government, people who have influence over the government and party officials to change the rules of engagement to actually benefit these private individuals. And the question is, why would you do that?

"In serious countries you have Foreign Corruption Practice Act and this is something like for example the State Prosecutor in Ghana should be looking at because this is not good for the country."


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