Dubawa investigates allegations against ECG, Bawumia & Hubtel: see what they found

Allegations Against Dr. Mahamudu Bawumia and Hubtel

Weeks before the 2024 elections, allegations surfaced against then Vice President Dr. Mahamudu Bawumia. It was claimed that he owned Hubtel, a digital payment platform. The accusations suggested he had engaged in corrupt dealings with Ghana’s electricity company.

These allegations appeared on various platforms. A Twitter account called @StatsAfric claimed Bawumia was linked to Hubtel. An X user named Nana Yaa Prempeh shared a video alleging that Bawumia owned Hubtel and contracted it for ECG payments.

The activist claimed that whenever payments were made to ECG, a percentage went to Hubtel. He also alleged that Hubtel manipulated figures to gain more money from ECG, harming taxpayers.

Nana Yaa Prempeh questioned if Bawumia really owned Hubtel and managed ECG bill collections. Marie Afua Amoakwa Boadu, an NDC supporter, accused Bawumia of corruption as well.

This controversy raised public concerns about ownership and illegal transactions involving the company. DUBAWA decided to investigate these claims due to their serious implications for taxpayers.

Investigation Goals

DUBAWA aimed to verify two main points:
1. Did Bawumia own Hubtel?
2. Did ECG contract Hubtel as its payment platform?

Verification Process

To begin the investigation, DUBAWA checked Hubtel's website for information on its relationship with ECG. According to Hubtel, their business relationship began in 2007 when they operated as SMSGH.

Hubtel helped deploy ECG’s first APIs for postpaid bills and SMS alerts back then. In 2011, they managed the rollout of ECG’s first point-of-sale devices for payments while Dr. Bawumia was not yet vice president.

In May 2022, after receiving a license from the Bank of Ghana, Hubtel approached ECG with proposals for billing technology solutions. By July 2022, ECG launched a digital transformation plan including a proof-of-concept agreement with Hubtel at no upfront cost.

Hubtel redesigned and implemented new commercial systems for ECG's payment processing responsibilities by March 2023.

Ownership Structure Investigation

DUBAWA investigated who owns Hubtel and any potential conflicts of interest with ECG. They spoke with Cornelis Rouloph Otoo from Hubtel's legal team who confirmed that Dr. Bawumia has no shares or ownership in the company.

Otoo stated there are only two shareholders: Mr. Bram and Mr. Apenteng. He emphasized that no shares have ever been held by Dr. Bawumia or anyone outside these original shareholders.

Alex Bram also reinforced this claim on social media stating he and Ernest Apenteng are the only shareholders of Hubtel.

Response from NPP

DUBAWA contacted Haruna Mohammed, General Secretary of the New Patriotic Party (NPP). He dismissed claims about Dr. Bawumia having stakes in Hubtel as false rumors aimed at discrediting him.

When asked for evidence by DUBAWA, Marie Afua Amoakwa-Boadu declined to comment further on her claims.

Registrar General’s Findings

Not satisfied with previous responses, DUBAWA filed a Right to Information request at the Registrar General’s Department under Ghana’s Companies Act 2019 (Act 992). This law requires companies to disclose registered shareholders transparently.

Official documents obtained disproved any claims regarding Dr. Bawumia's ownership of Hubtel:

- Company Name: Hubtel Ltd
- Incorporation Date: July 23, 2007
- Shareholders: Alexander Adjei Bram (50,500 shares) & Ernest Apenteng (49,500 shares)
- Directors: Same individuals plus Hans Daniel Nilsson & Patience Akyianu

Independent Source Verification

DUBAWA cross-referenced other sources like PitchBook which listed Chanzo Capital as an investor in Hubtel but found this claim unsubstantiated by legal representatives from the company who denied any investment from Chanzo Capital.

No credible evidence suggests Dr. Bawumia has any involvement in or connection with Hubtel either directly or indirectly.

DUBAWA confirmed that while their business relationship started in 2007 on a pilot basis, the full contract allowing collection of all funds began in March 2023.

Hubtel reported significant revenue increases since launching new systems in March 2023.

Financial Analysis

To assess whether ECG's finances improved over time post-contract signing with Hubtel, DUBAWA analyzed financial reports:

- 2019 Revenue: GH¢5,759 million
- 2020 Revenue: GH¢6,482 million
- 2021 Revenue: GH¢6,969 million
- 2022 Revenue: GH¢8 million
- 2023 Revenue: GH¢14 million

ECG's revenue jumped significantly after signing a full contract with Hubtel in March 2023 by over GH¢6 million compared to previous years' revenues.

Samuel Dubik Masubir Mahama stated that Dr.Bawumia played no role in this transaction nor received money through it via hub tel.

He clarified that what hub tel provided was real-time visibility into all revenue going towards EGC.

Some civil society organizations have called for audits regarding activities between ECG and hub tel but Samuel Mahama believes it has been financially beneficial overall.

Ultimately,DUBAWA found no evidence supporting allegations against Vice President Dr.MahamuduBawumia being co-owner or shareholder of hub tel based on verified statements from legal representatives along with official documents confirming shareholding structure.