Vodafone which had acquired 70 % stake in government owned, Ghana Telecom last year in July, finds the deal under clouds as a Ghanaian government report terms the deal as ‘unconstitutional and illegal’.

The report alleges that Vodafone had undervalued Ghana Telecom and the final price paid to the government for offloading its stake in the operator was less than $ 267 million.

Ghana’s President John Atta Mills and his National Democratic Congress Party who were in the opposition then, had objected to the deal last year in December precisely for the same reason of under valuation.

It is believed that Ghana Telecom’s assets and infrastructure including for terrestrial, mobile and fibre-optic networks as well as academy named Ghana Telecom University, should have commanded much more value than that offered by Vodafone.

The government report now says that the then Parliament had acted unconstitutionally in ratifying the deal without due process.

The government report also questions as to why bids from other players such as Telkom South Africa were not considered.

The report asks the government to renegotiate the deal with Vodafone.