 | | | |||||||||||||||||
| |||||||||||||||||||
| | | |||||||||||||||||
| |||||||||||||||||||
| | | ||||||||||||||||||||||
| ||||||||||||||||||||||||
The Committee for Joint Action (CJA) has called on government to immediately prosecute all public officials cited for embezzling about GH¢166.1 million in the 2008 Auditor General’s report.
According to the committee, it will be detrimental for government to ignore the call for accountability on the part of public officials, who have engaged themselves in financial malfeasance and blatant thievery, as has been officially captured by the report.
“Government must, as a matter of urgency, prosecute these crooked officials,” a leading member, Mr. Edward Bawah, charged, insisting that “punitive actions ought to be taken against the offending officials in order to deter others from engaging in similar practice.”
Mr. Bawah, who was speaking at a press conference in Accra, warned that, the CJA will not relent on its call for corrupt officials named in the report to face the law.
He regretted that despite numerous exposures made by the CJA in the past, government, especially the Kufuor-led administration, made no effort at instilling accountability in government agencies by prosecuting offenders. Giving details of the report, Mr. Bawah mentioned that over 20 government agencies, including some ministries were involved in cash irregularities which amounted to GH¢166.1 million, representing 177.4% over that of 2007.
He stated that the cash irregularities accounted for 92.8% of the total financial irregularities mainly due to four factors, which are imprest holders refusing to account for imprests, lack of supervisory controls over revenue collection; failure of officers to obtain supporting documents for funds disbursed, and the ineffectiveness of Internal Audit Units within the Ministries.
Procurement and stores irregularities cost the nation GH¢ 898,350 in 2008, indicating an increase of 24% over that of 2007. Payroll overpayments amounted to GH¢ 762,886, while contract irregularities amounted to GH¢3.4 million.
Stating some specific findings, Mr. Bawah mentioned that the VAT Service acquired the Bannet building, near Busy Internet, Accra, for GH¢874,154. He stated that interestingly, the building was rehabilitated at a cost of GH¢ 2,387,216 although it was leased for only 11 years with no possibility of extension.
He added that three Oil Marketing Companies (OMCs), which reneged on their scheduled payment plan to the tune of GH¢ 2,768,908.00 were not asked for guarantees and have not paid their debts.
MINISTRY OF TRADE
On Ministry of Trade, Mr. Bawah quoted from the report that “contrary to regulation of the Financial Administration Regulation, the Ministry opened and operated an account at the Accra High Street Branch of Barclays Bank in October 2005.”
“An amount of GH¢2 billion was transferred into it from the ministry’s main account which earned an interest of GH¢7.8 million, and the GH¢ 2 billion withdrawn,” he said, adding that the GH¢2 billion was not accounted for, neither was the GH¢7.8 million,” he asserted.
Still on the Ministry of Trade, the report captured that two private enterprises in the garment industry that were given grants totaling GHc288,000 to undertake capacity building abandoned the projects . “No attempt has been made to recover the monies,” he said, pointing out that a draft agreement commissioned at a cost of GHc 4,650 were never utilized. A building in Kumasi that was renovated by the ministry in 2006 at a cost of GHc11,492 was still standing unused in 2008 because additional funds were not made available for completion of the project.
Also, a strategic plan prepared at a cost of GHc45,696 in 2006 has been left to gather dust, he added.
He stated that the ministry made payments amounting to GH¢ 273,310 for repairs and maintenance without certification.
MINISTRY OF INTERIOR
Under the Ministry of Interior, cash irregularities amounted to GH¢286,241 and US$13,485.
These were in respect of misappropriation of proceeds of tender documents; disbursements from revenue collected and unauthorized use of internally generated fund.
MINISTRY OF HARBOURS AND RAILWAYS
Here, management misapplied an amount of GH¢600,000 out of GH¢2,150,000 voted for the payment of end of service benefits for 674 retrenched Railway workers. “It is worth noting that during this period, workers of the Railway company had not been paid for years,” he said, hinting that it may have accounted for the non-payment of salaries.
MINISTRY DEFENCE
Mr. Bawah stated that in the Support Services Brigade, cash irregularities totaling GH¢473,61) for repairs was unsatisfactory completed and had no certification.
MINISTRY OF FOREIGN AFFAIRS
An amount of 76,761 euros which was transferred to the Copenhagen Mission on 2nd August 2006, could not be traced to the Mission’s accounts.
MINISTRY OF FINANCE AND ECONOMIC PLANNING
The Audit report captured that, total release from Non-Road Accounts in violation of procedures for accessing funds from the consolidated amounted to GH¢3,066,742.
Also, the ministry failed to collect taxes amounting to GH¢2,590,922 at the Abeka Lapaz DTO alone. CEPS The CJA concluded that post clearance short collections amounted to GH¢13,655,166.
Source: Enquirer
| | | |||||||||||||||||
| |||||||||||||||||||
US oil giant, Anadarko International Oil Company, has blown the whistle on the shape of how oil exploration licenses were awarded under the NPP government, saying they and their partners, Hess, were asked to part with 5% of their stake to, ‘an unknown Ghanaian party,’ as a condition for being awarded the South Deepwater Tano block for oil exploration.
“We were informed that if we made such a strong bid, it would overcome a previous demand by then Chairman of GNPC, Stephen Abankwa, that we carry an unknown Ghanaian party for five percent (5%) something neither Hess nor Anadarko can do, given that we are both subject to the US Foreign Corrupt Practices Act and other related US legislation,” Anadarko revealed.
Anadarko, who had put up an individual bid, alongside Hess and others, stated in a protest letter to the Minister of Energy, Dr. Joe Oteng-Adjei that the above demand, was made of them after they were encouraged by GNPC to combine their individual bids for a joint one.
The revelation was contained in a confidential letter dated February 24, 2009 and signed by Ian J. Cooling, Vice President, Business Development of Anadarko.
According to Anadarko, together with Hess, they subsequently submitted a combined bid, “but were shortly thereafter informed by Chairman Abankwa that if we did not accept the third-party carry of five percent (5%) another company, the Norwegian company Aker, had already agreed to do so and would be awarded the block.”
Anadarko said it was later informed by the then Minister of Energy, under the John Kufuor administration that the block had been awarded to another company, without telling them about how the bids fared.
“There was no transparency whatsoever in the entire bid process,” Anadarko charged, adding that “We never received a formal written notification that our bid had failed, and it was to our dismay that we learned later that Aker, had indeed been awarded this extremely complex, deepwater block.”
It was from the press and other sources, according to Anadarko, that they “learned that the Aker bid also included a third party for five percent (5%).”
ELECTIONS The US oil giant asserted that “We were upset and seriously considered at that time alerting the highest levels of the US Government and asking their intervention, but the Ghanaian Presidential election was upon us and we decided that this issue might perturb the democratic process, which we strongly support.”
The license for the block was awarded to Aker under a petroleum Agreement signed on October 24, 2008 about six weeks to the presidential and parliamentary elections. On the same day, a Service Agreement was signed between Aker ASA and CHEMU Power Ltd., a company owned by an offshore company called CHEMU Capital BVI.
Martinus Brandal, Senior Partner and President, signed on behalf of Aker ASA, while Nik Amarteifio, Executive Chairman of CHEMU, signed on his company’s behalf.
Anadarko called on the new minister to review the bid procedure and processes for the award of the block, which they believed would turn the tide in their favor.
“Now that the election is over, we are confident that you, Mr. Minister, will wish to review the bid procedures and processes of the award of Ultra Deepwater Tano Block. After such review, you will undoubtedly notice that the combined bid of Hess and Anadarko, two world-class deepwater operators with such a strong combined bid, would have been in Ghana’s best interest,” Anadarko asserted.
The company that had the five percent carried interest was Chemu Power, owned by Nik Amarteifio and Dr. Charles Mensa, both close pals of former President John Agyekum Kufuor.
DR. CHARLES MENSA
Dr. Charles Mensa was appointed by the President to serve as Chief Executive Officer of Volta Aluminium Company (VALCO) during his tenure as President. Charles Mensa sparked controversy some years back when as Chairman of the University of Cape Coast Council, he conferred an Honorary Law Doctorate on then President Agyekum Kufuor, at a time when the University had no Law Faculty.
Dr. Mensa is a founder of the Institute of Economic Affairs, a governance think- tank.
NIK AMARTEIFIO Nik Amarteifio is a bosom friend of former President Kufuor, he is also the man who brought Telenor to replace Telekom Malaysia. Telenor, according to a recent government investigation criminally run down Ghana Telecom.
Kufour’s government paid Telenor a whopping $600,000 for the business plan they used to secure a Ghana Telecom management contract in response to an international advertisement inviting strategic investors to partner Ghana Telecom. Eventually, Telecom Malaysia sued the government in an international arbitration and walked away with a handsome compensation.
Nik was appointed by former President Kufuor to serve on the board of Bank of Ghana, and was rumoured to be the President’s ear on activities at the Central Bank of Ghana.
Nik’s offshore investments, which stretch from Channel Islands in the UK to his equity stock option in Canada are under investigation by The Enquirer.
STEPHEN SEKYERE-ABANKWA Mr. Stephen Sekyere-Abankwa, who was appointed by President Kufuor to serve as GNPC Board Chairman, remains a very close pal of the former President Kufuor. He is rumoured to have served as a quiet financial advisor to the former President.
Mr. Abankwa, is currently the Managing Director of Prudential Bank Ltd in Ghana.
During the Ghana@50 celebrations, the Office the President guaranteed about $10 million for him and his partners to secure a loan facility from the Social Security and National Insurance Trust (SSNIT) to construct residential accommodation. By press time yesterday, Mr. Abankwa and his group had still not been able to pay up the loan they took from workers pension contribution. Interest on the loan has reached about 4 billion Cedis.
MOSES BOATENG When Energy Minister, Dr. Joe Oteng-Adjei, referred the Anadarko letter to the then Managing Director of GNPC, Mr. Moses O. Boateng for his response, he gave the minister what could at best be described as half-truths in a letter dated March 9, 2009.
Mr. Boateng stated, for instance, that “In terms of financial and technical capabilities the two companies were found to be almost at par and GNPC would be indifferent as to which of them was eventually awarded the block.”
This assertion is not supported by the facts as a cursory glance at the track record of Aker ASA, Anadarko, Hess and Chemu, would leave no one in doubt that the two US companies, Anadarko and Hess are streets ahead of their Norwegian and Ghanaian counterparts in their technical and financial capabilities as well as all other departments of the oil industry.
Again, in a table that purported to compare the terms of the Hess-Anadarko and Aker ASA applications for the Tano Deepwater, Mr. Boateng was not forthright with the minister. He actually, matched the raw bid of Hess-Anadarko against the negotiated terms under the Aker ASA – Chemu Power agreement.
This obviously was to misrepresent to the new minister that the bid of the latter was better.
However, a review of the Petroleum Agreement signed with Aker ASA, revealed that contrary to the requirements of the Petroleum Exploration and Production Law, PNDC Law 84, the company neither registered nor incorporated a company under the laws of Ghana.
That Agreement was ratified by Parliament on November 5, 2008. But Aker ASA, got Aker Ghana Limited incorporated on October 29, 2008 with certificate of incorporation number, CA-51,646, to commence business on October 30, 2008.
Aker ASA sought to assign its interest to Aker Ghana Limited, as a means of regularizing the agreement. However, by a letter dated December 30, 2009 the Energy Minister, declined the request, since the original agreement was invalid.
According to him, “The assignment you have requested is legally impossible in view of the underlying failure of compliance with the law.”
The minister, by a copy of that letter advised GNPC to reimburse Aker ASA with costs incurred in acquiring data, since such data acquired belonged to GNPC. He notified Aker ASA that it was going to reactivate negotiations which had commenced previously with the Anadarko/Hess application.
The relevant clauses under Section 23(15) of the Petroleum Exploration and Production Law PNDC Law 84, states that a contractor (foreign company):
“which is not an incorporated company in Ghana under the Companies Code, 1963 (Act 179) shall (a) register an incorporated company in Ghana under the provisions of the Companies Code, 1963 (Act 179) to be authorized to carry out solely petroleum operations in respect of which a petroleum agreement or petroleum sub-contract has been entered into under this Law and such signatory shall be a signatory to any petroleum agreement;”
“(b) maintain an office or establishment in Ghana to carry out petroleum operations and shall have in charge of such office or establishment a representative with full authority to act and to enter into binding commitments on behalf of the contractor or sub-contractor, as the case may be; and, continues with subsection (c) that:
“In respect of such petroleum operations, open and maintain an account with a bank in Ghana.”
Companies, such as Kosmos Energy, Tullow Oil, Anadarko, Sabre Oil and Gas Holdings have all registered their companies under Ghana’s Companies Code, to facilitate their compliance with the law before entering into petroleum agreements for their blocks.
THE NORWEIGIAN CONNECTION
One shocking revelation from the GNPC boss to the Minister was that in awarding the South Deep Water Tano block to Aker ASA, they were influenced by factors such as “The Norwegian Government’s Support to Ghana in restructuring the oil and gas industry together with their support for training of Ghanaian staff” The GNPC boss further noted that “the keen interest of the Norwegian Ambassador in GNPC affairs became a plus in favor of Aker”
According to Mr. Boateng, one other consideration for awarding the field to Aker ASA was the fact that “.there were relatively too many American companies in the basin namely, Kosmos, Hess, Anadarko and Vanco,” but “There were only two European companies - Tullow and Vitol, the decision was to spread and therefore favored Aker.”
The above has generated a geo-political controversy as to whether the Norwegian government twisted the arms of the previous government in awarding the field to Aker.
Observers say the mention of the interest of the Norwegian Ambassador is akin to the controversial role played by the British Ambassador to Ghana in the sale of Ghana Telecom to Vodafone, a British telecom giant.
 Chief of Staff Alex Segbefia Information reaching DAILY GUIDE suggests that the notorious car dealer who was elevated to the position of deputy boss of the Confiscated Vehicles Committee, Nana Ekuban Olivier, also called Frenchman, is being deported to his native Cote d’Ivoire. His deportation follows a brief investigation on him after he caused a scare on Christmas eve by drawing a fully-loaded gun at the confiscated car depot at Tema. DAILY GUIDE reported at the weekend that Nana Ekuban Olivier had been arrested by the Bureau of National Investigations (BNI) and according to additional information, was being held over the past three days. Olivier’s arrest, DAILY GUIDE learnt, was in connection with some stolen cars at the Tema Port. The arrest of Frenchman was confirmed by Alex Segbefia on Joy Fm’s Newsfile programme on Saturday. His action was said to have caused government grave embarrassment against the backdrop of an already negative press on the activities of the committee. Sources said some car dealers had also petitioned security agencies about monies allegedly paid to some persons involved in the allocation of confiscated cars. Olivier was stopped from breaching procedures in the disposal of stolen vehicles in a container at the depot when he stormed the place in the company of some National Security operatives. Not happy about the action, he reached for his gun but was unable to pull the trigger as he was disarmed by a CEPS officer on the spot. It is now established that the man is a national of neighbouring Cote d’Ivoire and was engaged by Carl Wilson to serve as his deputy while they both reported to deputy Chief of Staff Alex Segbefia. The Confiscated Vehicles Committee earned negative headlines recently, after revelations about an assortment of improprieties in its management under the chairmanship of Carl Wilson. News about alleged improprieties against the committee attracted the attention of President John Evans Atta Mills who ordered an investigation. Rumours are rife that Segbefia has allegedly threatened to resign if Carl Wilson is taken off his schedule. The earlier exit order to Carl Wilson appears to have been successfully fought by Alex Segbefia until the end of the ongoing investigation into his activities and allegations of corruption in the allocation of vehicles. DAILY GUIDE has learnt that Alex Segbefia threatened to walk out of the government should his boy be dismissed. He seems to have had his way as Carl Wilson hovers around the committee, though with an impaired ego. Alex had demanded proof of Carl Wilson’s dismissal when news about the action was made public by DAILY GUIDE. Meanwhile, a pro-NDC newspaper, Daily Post has also reported that President Mills ordered for the dismissal of Carl Wilson on the eve of Xmas last year. By A.R. Gomda |
