Politicians are certainly not the most corrupt– Hackman, Rashid Pelpuo

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Deputy Majority Leader, Rashid Pelpuo Leading MPs have vehemently disagreed with the Ghana Integrity Initiative’s Voice of The Peoplesurvey which indicates politicians have overtaken the police as the most corrupt in Ghana. Former Works and Housing Minister Hackman Owusu Agyemang and Deputy Majority Leader Rashid Pelpuo were unanimous in their disagreement with the report which said 72.7 Ghanaians surveyed believe politicians are the most corrupt, followed by the police. Mr Owusu Agyemang, who is the Member of Parliament for New Juaben said he had evidence that civil servants in Ghana were far more corrupt than politicians. “I can tell you – I’ve said it on the floor of the House - for every politician that is fingered there are more than a thousand non-politicians who engage in corruption.” He said whilst as minister, a director under his ministry awarded a 40 billion cedis contract without due process and without recourse to the board or the minister. “The technical people do the vetting of all the projects, the loading up…and they bring it to you at the ministry…and most of the time, you won’t believe it that, when they bring you [requests] for procurement they have tailored the specifications so much so that it can fit only one particular, say vehicle or equipment.” Mr Owusu Agyemang claimed that 75% of properties at the Airport Residential area were owned by civil servants with 80 percent of properties at East Legon belonging to civil servants as well. “How did it happen”? he asked. “Once in a while you will get some issues regarding either the negotiation for a loan and then what have you and the issue is blown up. Politicians are also corrupt to some extent but they are not the most corrupt in the society as I know it. There were instances, when I was a minister, that civil servants were trying to take bribes from my wife and my family,” he asserted. The former Foreign Minister tasked the media to help root out the cancerous corruption from the Ghanaian society by constantly shedding light on the canker. He said corruption had permeated the society so much that dealing with it has become difficult, stressing the need for an investigative agency which can point to who owns which property for purposes of accountability. Agreeing largely with the submissions of Mr Owusu Ayemang, MP for Wa Central, Rashid Pelpuo said the politician can’t be corrupt without the public being corrupt. He said the mentality and thinking of the average Ghanaian must change if the situation is going to see any significant improvement. Generally, Ghanaians, Mr Pelpuo said, think the politician must be rich and therefore people line up for gifts. “I think that we need to work on the populace of Ghana, the mentality of the Ghanaian, the thinking of the ordinary person on the street that the politician must be rich; he is the one everybody will line up to ask for money from; he is the one when he ends his tenure of office and can’t have a house he is really insulted and maligned; he is the one who is seen as an object of exploitation by the people who he wants support from,” he stated. In addition, he said the civil service had evolved some entrenched corrupt mechanisms that the politicians were virtually helpless and were often prone to manipulation by the civil servants. The fight against corruption, according to Mr Pelpuo must be taken seriously. He said audit reports considered by the Public Accounts Committee of Parliament must provoke recommendations that are fully implemented. The situation will change if people found to have engaged in financial malfeasance are prosecuted, he noted.

4.5 million barrels of oil ‘missing’ - Danquah Institute

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Over 4.58 million barrels of crude oil produced from the Jubilee fields are unaccounted for as Kwabena Duffuor, Finance Minister under the ruling National Democratic Congress, and Tullow Oil have on separate occasions stated different production figures for the same period under review. Using the average crude oil price over the material period of January-September 2011, the missing barrels add up to $493.5 million or $458 million, going by the lower hedging price that the Government bet its crude oil sales on. Paragraph 58 of the 2012 budget presented by Dr Duffuor on the 16th of November 2011 states: “Actual production from January to September 2011 is 17.42 million barrels. It is expected that 2011 will close with an annual oil production of 24.78 million barrels.” However, just a week earlier, on 9th November 2011, a press statement by Tullow Oil, the largest partner in the Jubilee Field project, stated that during the same period under review, “over 22 million barrels of oil have been produced and 21 oil cargoes have been safely exported.” The disparity in these production figures put out by the NDC government and Tullow Oil has raised further doubts over transparency in the actual volumes of crude oil being lifted from Ghana. Earlier this year, anxiety gripped the nation over allegations of improper accounting of how much oil was being drilled following the reported malfunctioning of flow metres on the FPSO Kwame Nkrumah. This malfunction appeared to have been glossed over by the operators of the FPSO until a leading civil society advocate on oil and gas of Ibis Ghana, and a fellow of the Danquah Institute, Mohhamed Amin Adam, raised alarm over it in May. It was not until August 2 that the flow metres were fixed. In a related worrying development, despite the fact that new metres have been installed, it is reported that the calibrations on the production line metres of the FPSO have not yet been verified by the Ghana Standards Board. In an article written by the same Mohammed Amin Adam, he states that one of the major problems of oil producing countries in our region and which has promoted oil theft has been metre tampering. According to him, the NDC Government has failed to provide the Standards Board with the logistics or resources to hire reputable organisations to partner them in verifying the newly installed flow metres. As a result of this, Ghanaians cannot be sure if the new metres have not already been tampered with, and wrong declaration of crude oil quantities made since no verification has been done, he argues. “It is equally appalling to hear that Tullow blocked the use of electronic seals installed on the flow metres for independent verification of oil exports on the excuse that they were not factored into the design of the FPSO when it was built. Thus, the onshore centre established by the Ghana Revenue Authority to which electronic data will be transmitted from the electronic seals has become a waste on Ghana’s finances,” the oil and gas expert says. Mr Amin Adam says, as a country, we cannot, therefore, be sure if the reported oil export data reported to the Ghana Revenue Authority by the two CEPS officers is correct since there is no independent verification by the Ghana Revenue Authority. In light of these developments, Mr Amin Adam implored Government to be proactive in the design of the new FPSO for the exploitation of Enyera-Tweneboa fields so as to ensure that provisions are made for the installation of GRA’s electronic seals for independent verification of oil production and exports. “This has become important because failure to do this at this time will result in Tullow blocking the use of the onshore electronic centres in the new FPSO, a situation that has already caused financial loss to the state,” he says. The phenomenon, currently ongoing, where the Ghana Revenue Authority is being prevented from using its own mechanisms to assess and collect revenues from the export of oil, according to Mr Amin Adam, contravenes Section 15 of the Petroleum Income Tax Law and PNDC Law 188. These laws, according to Mr Amin Adam, empower the Commissioner of Taxes or his agents to enter any premises without prior notice for the purpose of assessing and collecting taxes due the Republic of Ghana. “It is sad that government has been silent on this,” he says. In addition to the Standards Board’s off-shore monitoring, Mr Amin Adam calls for regular independent international certification of the functioning and the performance of all measuring instruments including production and flow metres.

NDC CHAIR IN KICK-BACK SCANDAL

From Samuel Agbewode, Ho

At a time the government is struggling to reduce the number of basic schools under trees, some few individuals are also feeding fat on the little resources allocated for such projects.

The Ho-West Constituency Chairman of the National Democratic Congress (NDC), Mr. Charles Senyo Nyame-Coker, is at the centre of a controversy surrounding the construction of a six-unit classroom block under the ‘School Under Trees Project’.

Mr. Nyame-Coker allegedly pocketed over 20 percent of the total contract sum as his cut, after using his political influence to bid and win the contract, although he did not have the technical competence to undertake the project.

After winning the contract, Mr. Nyame passed it on to Madam Ama Aloryitor, a contractor from whom he had earlier taken an amount of GH¢1,000 to enable him buy tender documents for the project, and demanded a ten percent kick-back.

But, greed took the better part of the NDC chairman after setting his eyes on the GH¢750,000 project sum, decided of his own volition to slash a whopping GH¢196,000 as his cut, without recourse to what his action was likely to have on the execution of the project.

The contractor, who felt duped and scandalised by the action of the NDC Chairman, is heading to the law court to seek redress.

Narrating the story to The Chronicle in Ho, the Volta Regional capital, Madam Alorvitoh said she was approached by the Ho-West NDC Constituency Secretary, Mr. Mawuli Danyo, on his Chairman’s intention to bid for the project, but noted that he (chairman) did not have the financial wherewithal to even purchase tender documents.

According to Madam Aloryitoh, she readily provided an amount of GH¢1,000 to help the NDC Chairman buy the tender documents.

Madam Aloryitoh said, at a later date, Mr. Danyo contacted her with an offer of a contract at Avenue-Camp, which she readily accepted, but on a condition.

Mr. Nyame-Coker, who now holds the contract, was demanding 10 percent of the total contract sum, after which he promised to refund the GH¢1,000 he owed Madam Aloyitoh.

But, to the utmost surprise of Madam Alorvitoh, Mr. Nyame-Coker later informed her that he had divided the contract into two, and that she would be given half of it, being a three-unit classroom block and a toilet to construct.

She continued that news later got to her through the Constituency Secretary that the Chairman had gone to the offices of the Ghana Education Trust Fund (GETfund), and collected a cheque for GH¢750,000 written in the name of his company, Akorfaha Enterprise, a company he had newly registered, purposely for the execution of the three-unit classroom block project.

Madam Aloryitoh said when she eventually confronted the Chairman on the development, he had already cashed the GH¢750,000 being the total contract sum, and subtracted a whopping GH¢196,000 as his own calculation of 10 percent of the contract sum due him, as earlier agreed.

When questioned on why he decided to take GH¢196,000 as 10 percent instead of GH¢7,500   Mr. Nyame-Coker told her that it was a normal practice, and that when party executives sub-let contracts, the contractor pays the amount he had subtracted as kick-back.

She quoted the NDC Chairman as saying that even though the amount might look quite huge, it was the practice of the party to take such percentages and deposit them into the party’s coffers at the constituency level to support activities of the party.

Not convinced with this explanation, Madam Aloryito said she reported the matter to the Ho Central Police, but the police CID who was handling the case, rather advised them to settle the matter amicably, after listening to both parties.

Madam Aloryitoh said even though she had completed over 90 percent of the contract, she had to source for funds elsewhere, and still needs some amount of money to complete the project.

She is insisting that the NDC Chairman pays back the huge sum of money deducted from the contract sum, or she would pursue the matter in court.

Interestingly, when The Chronicle contacted the NDC Chairman, Mr. Charles Nyame-Coker, he confirmed the story, and said the huge deductions he made was an agreement he signed with the contractor, Madam Aloryitoh, before she took over the project.

He further told The Chronicle that the contractor did not seem to understand fully the conditions attached to the contract before taking it up. Mr. Nyame-Coker, however, denied that he said anywhere that the deducted amount would be given to the party.

He said the contractor signed a document, which showed that she agreed to the deduction, adding that he first gave the contract to his party secretary, before the secretary also sublet the project to the woman.

However, the NDC Constituency Secretary, Mr. Mawuli Danyo, denied that the Chairman gave him any contract, much more he subletting it to Madam Aloryitoh.

He described Mr. Nyame-Coker’s attitude as very shameful, and pledged to defend the woman, because since he (Secretary) recommended the contractor to the Chairman, he should have witnessed every aspect of the contract.

Joe Gidisu for court over luxury Chinese BMW

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Roads and Highways Minister Joe Gidisu Roads Minister Joe Gidisu is considering going to court over reports he has received a luxury BMW saloon car from a Chinese construction firm working on the Achimota-Ofankor highway. The vehicle has been widely reported as a gift which President Atta Mills has ordered him to surrender to government, but Mr. Gidisu maintains he handed it over to the Castle voluntarily. Mr Gidisu however insists the luxury car was not for his personal use. “It is a project vehicle bought on a project account which is usual with the ministry and other ministries that run projects,” he said. “I mean that car was never a gift to me as Joe Gidisu in office as Minister for Roads and Highways. It was a car bought by an agency under the ministry, that is, the Ghana Highways Authority where we have documents covering the request and the delivery of the vehicle to the Ghana Highways Authority on behalf of the ministry.” “The car is for the office use of the ministry for the state minister and it is not peculiar to the Ghana Highways Authority nor the Ministry of Roads and Highways,” he indicated. Mr Gidisu says he’s conferring with his legal team to decide his next line of action. “I am referring the case to my legal advisors for the necessary action. I’m never the type who should be associated with such a bill,” he said. Conflict of interest A road contractor Osamanu Guarantee believes the vehicle was a bribe. “Immediately such item is being given to a minister then there is a conflict of interest in the contractor,” he indicated. He said it was wrong for the minister to have received the vehicle which appears to be denting the reputation of the minister. “There shouldn’t be any vehicle whatsoever between the contractor and the minister let alone for it to be a luxurious vehicle…I think in this case the minister should have rejected the vehicle outright to set as an example to other ministries.” “If they are putting it…as a contract vehicle or a project vehicle then I’m sorry to say the minister has got nothing directly to do with the contractor,” he indicated. He said “contract vehicles” and “project vehicles” are “only terminologies used to cover up such conflict of interest.”