Ghanaian
press capture Blair’s visit
Fraud
brewed in Social Security Trust pot
It is
perhaps, the most widely captured event in the Ghanaian media after the tragic
World Trade Centre crashing of September 11, 2001. British Premier Tony Blair’s
African tour and his arrival in Ghana on February 7, 2002 find space in the
front-pages of nearly all the Ghanaian papers.
“Blair is
here for three-day working visit,” writes the national ‘Daily Graphic’ in a
banner headline story, that also captures a hearty picture of Ghanaian
President John Kufuor and Premier Blair, in a walk towards the VIP Lounge soon
after the Primer Minister’s arrival.
The paper,
noting government sources information that said the two leaders will discuss
bilateral relations and British economic assistance, stated in another front
page capture that Mr Blair’s arrival had “a simple welcoming ceremony.” The
Daily Graphic also has an eight-page supplementary tracing bilateral relations
and trade between the two countries.
‘The
Ghanaian Times’ under a similar headline “Blair is here” carries that the
British “Prime Minister touched down at the Kotoka International Airport at
6.55 pm”. The paper says as soon as the plane touched down, Prime Minister
Blair was presented with a bouquet by 11-year old Christiana Acheampong of
Morning Star School.
“Blair
arrives in Ghana, addresses Parliament today,” writes independent paper The
Ghanaian Chronicle while the ‘Weekend Agenda’ captions “Tony Blair breezes in”
on its front page. Another independent paper, The Weekend Statesman, pushing
closely to what is the expectation of many, says “Blair to help us tackle the causes
of poverty.”
The ‘Ghana
Palaver’ however, in what appears to be a comparative effort headlines its
banner story “Tourist” Blair calls on “Tourist” Kufuor. According to the paper,
the British Premier who has been declared a ‘tourist’ by the British press due
to his numerous trips outside his country … was calling on his ‘tourist’
soul-brother, J.A. Kufuor.
The paper,
which counts as 26 the number of travels that the Ghanaian President made in a
space of 12 months says Mr Blair on his way to Ghana deliberated in Lagos with
Nigerian head Olusegun Obasanjo, who is also reputed to have travelled outside
Nigeria 67 times in 32 months, almost equating President Kufuor’s formula of a
trip per fortnight.
GRi…/
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NDC MPs must see a psychiatrist
The
acrimony that has characterized parliamentary debates on President Kufuor’s
Sessional Address reached a crescendo on Thursday, with Members of Parliament
(MPs) resorting to abrasive language.
The Speaker
of Parliament, Hon Peter Ala Adjetey, on several occasions had to call upon
members who made such vitriolic statements to render apologies and conform to
the provisions of the Standing Orders of parliamentary proceedings.
The
insulting statements reached their peak when Hon Kwame Osei-Prempeh, MP for
Nsuta Kwamang, called on those NDC MPs who see the President’s State of the
Nation’s Address presented in Parliament as empty and without vision to see a
psychiatrist.
There was
near commotion in the House as NDC MPs became incensed by the statement made by
Hon Osei-Prempeh and demanded that he withdraw his statement. The Speaker,
whose attention was caught by the demands of the NDC minority MPs impressed
upon the MP for Nsuta Kwamang to withdraw his statement, which he did. - The
Ghanaian Chronicle.
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Dr Kwame
Amoako Tuffuor, Chairman of the Board of Directors of the Ghana Civil Aviation
Authority (GCAA), has dared anyone, especially those he described as his
detractors to come up with information of the address and location of the
property they claim Africa Ground Operations Limited (AFGO), owned by Marwan
Traboulsi, had given him not to pursue the move to break the company’s monopoly
over cargo handling at the Kotoka International Airport.
“I want to
let my adversaries know that the stories they are peddling about me, Traboulsi,
AFGO and others are all absolute lies,” he declared. Speaking to the Chronicle
in an exclusive interview in Accra on Thursday, he stressed he had never met
Traboulsi before and junior officials of AFGO who came to see him sometime ago
met him in the presence of GCAA officials and the interactions were “crisp and
sharp”.
Dr Tuffuor
said he has enough assets from his own sweat and tears and by God’s grace, not
to succumb to someone else’s cheap and possibly ill-gotten wealth of any sort.
“I’ve heard of some wicked lies of somebody buying a house for me and I
challenge anybody anywhere and at anytime to come up with information of the
address of the property and its location,” he shot out, adding that he would
personally reward that person if he could do such a thing.
According
to him, his delay in taking action against AFGO stems from the fact that he
should be most sensitive about how the government would be looked at and viewed
against the background of government protection of foreign investment and
matching that against what is fair play and what is rough tactics, so that he
could come up with a clear cut decision that will protect the government’s
stand and interests.
“My
closeness to the President makes it absolutely important for me to act
properly, since wrong actions will be bad publicity for the President, even
though good actions will not be talked about,” he contended.
According
to Dr Tuffuor, he was and still is personally angered about the AFGO monopoly
and its implications to the promotion of the export sector of the economy
through the airport.
He said he
would get to the take off point when he had established a well-balanced
committee that will come out with the exact actions that need to be taken,
given the background of what happened historically and the court actions that
took place and are still going on.
He
explained that at the appropriate time when the committee is ready he would
crave public indulgence, and come out boldly and dismiss the monopoly. The GCAA
board chairman said he would be introducing the committee to the Minister of
Roads and Transport, who is in charge of GCAA and Ghana Airways.
“For the
moment, I want to warn the management of AFGO trying to find ways of meeting
me. I’ve never been interested and will never be interested,” he asserted. When
asked to give an update on AFGO monopoly and steps being taken to break it, Dr
Tuffuor said since the NPP government believes in the rule of law, in
establishing the kind of procedure, he was still pursuing a systematic approach
in dealing with the situation.
He said his
first line of action was to establish certain modalities as to how to handle
cargo at the airport, indicating the kind of benefits in having competition,
which will bring down handling charges lower to the average Ghanaian or
exporter, and the type of efficiency or security that will be needed.
He said
they had also looked at the kind of smuggling activities going on at the cargo
village and how to curb it in the event that other cargo stations or depots are
established. According to him, Ghana Airways lost a lot when they were forced
to abandon their cargo handling.
“We are
therefore looking at how Ghana Airways can efficiently get back into cargo
handling, so that GCAA can assist the national carrier that probably handles
about 80 per cent of all cargo that passes through our airport.”
Dr Tuffuor
said he was more than convinced that the action the action by the NDC
government to give AFGO the monopoly was totally unfair against Ghana Airways
and against the nation’s economy in the promotion of businessmen and indigenous
people, especially those in the export sector.
He assured
he would honestly discharge his duties to the best of his ability, working
solidly with his board members and the management of GCAA “to put to stop all
those lies and fabrications that are making the rounds, mainly propelled by
parties whose sole aim is to create confusion so that they can continue their
smuggling and other nefarious activities the airport.” - The Ghanaian Chronicle
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Shady deals at Ghana Telecom - Herbert Mensah accused
The NPP
government’s policy of zero tolerance for corruption, if allegations emanating
from the financial department of the beleaguered Ghana Telecom is to be
believed, has claimed another victim.
This time
in the person of Herbert Mensah, the soon-to-depart Chief Executive of Kumasi
Asante Kotoko Football Club and former director of Ghana Telecom (GT). Herbert
is alleged to have aided a friend, Kennedy Agyepong, to secure contracts from
the Telecom giant and deny GT a refund of almost a billion cedis from
Agyepong’s company as a result of a shady overpayment for services rendered.
Another
allegation, which seriously casts aspersions of serious conflict of interest
described the former director as breaching his fiduciary duty to GT by
negotiating a deal with a South African company that GT was to gain from.
But, the
man at the centre of the allegation, Herbert Mensah has responded to the
allegations as “incredulous.” He is of the strong opinion that it is the work
of aggrieved persons who stand to lose from the unprecedented inquest
undertaking by the Directors, under the chairmanship of Prof. S.K.B. Asante, to
uncover hundreds of billions of cedis fraud in Ghana Telecom between the local
operators and the Malaysians. Indeed, investigations are currently underway on
a possible ¢500 billion fraud.
Herbert
Mensah, who resigned as director of Ghana Telecom last month reduces the
allegations against him as to nothing but a dubious attempt of the “I destroy
you before you destroy me” syndrome prevalent in our society.
He
confirmed that under S.K.B. Asante, who resigned on Thursday, the Board of
Ghana Telecom had managed to recover $8 million that would have been lost
forever to corrupt practices. He pointed out that the Director of Finance, Mr
Boakye and the Malaysian Managing Director of Ghana Telecom had conspired to
illegally deprive the company of ¢66 billion, which, “Standard Chartered Bank,
has admitted.
The
Statesman learnt that Agyepong’s company, Kenpong Contracts Works, was engaged
as a subcontractor under Seoul Commtech of South Korea, owners of Samsung in
the ongoing Ghana Telecom expansion work.
Messrs
Kenpong Contract Works was, however, overpaid to the tune of $135,437.39
(¢900,664,000) and was subsequently asked to refund the excess money to Ghana
Telecom, which the company agreed in a gentleman’s agreement with Samsung.
However,
after the mutual agreement, in a rather bizarre twist, Herbert Mensah is
alleged to have coaxed the Managing Director of Ghana Telecom, Dato Abdul Malek
Mohammed to refund the money to Agyepong’s company, but Herbert laughs this off
as ridicule.
He
describes Agyepong not as a friend he “socializes” with beyond the mutual
Kotoko ties. He also said he had never heard of the $135,000 before Thursday.
He was also accused of unilaterally re-negotiating a deal the Ghana Telecom
entered with Adriam Love, a South African Telecom company for
inter-connectivity transaction to the disadvantage of in the original
agreement. Ghana Telecom was to be paid 9.0 cent for every one-minute call made
through GT’s network.
But Herbert
Mensah is alleged to have used his influence to re-negotiate the deal bringing
it down to 4.5 cents, which was a 50 per cent loss to the state. Ghana
government has 70 per cent shares in Ghana Telecom.
Herbert
Mensah, who until recently was chairman of Ghana Telecom Board’s Sub-Committee
for Tender and Procurement says of the money overpaid to Agyepong: “That must
have been first authorized by someone and there must be a paper trail leading
to the source.”
This
implied that, perhaps, someone might have authorized that to deprive GT of the
amount but was forced to call for a refund after the cover was blown. On the
deal with Adriam Love, Herbert said that it was the Minister of Communications,
Felix Agyepong, who brought them in from South Africa. “I was not then at Ghana
Telecom and was therefore not part of the original negotiations team.”
He revealed
that certain locally-based companies were illegally making money that was
suppose to go to GT. The South African company’s involvement was to bring
revenue to Ghana, which never before existed. He explained the negotiations and
the technicalities of the transaction as complex and was prepared to explain
matters further to the Statesman on a later date.
Herbert
Mensah has described the allegations, which has been levelled against him from
a top official in Ghana Telecom as “So incredulous.” When contacted on Thursday
night, he said: “In this era of zero tolerance the government will prosecute
anyone, including myself, if such is the case.”
He went on
to explain that, “no director of Ghana Telecom can walk into Ghana Telecom and
ask for things to be done.” As it is the normal practice, non-executive
directors are not supposed to play any role in the day-to-day running of a
company.
The
contrasting stories from official source in Ghana Telecom and that from the
former director pitch Herbert Mensah directly against the Chief Financial
Officer. As admitted by Herbert Mensah, “the truth is in there somewhere.”
The
Statesman is, in public interest, going ahead to pursue this investigation.
Prof S.K.B. Asante who resigned this week is traveling back to the US to spend
more time with his family.
Herbert
Mensah is also returning to the United Kingdom where his telephony company is
based. Whiles looking forward to Kotoko’s trip to Angola, among others, he,
however, intimated to the Statesman that the time has come for him to resign
from the board and spend more time with his business and family. - The
Statesman
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AIDS is now the biggest adult killer in the Brong Ahafo Region. Last year, 3,567 deaths were recorded in the region as against 1,990 in 2000. The Brong Ahafo Regional director of Medical Services, Dr Kofi Asare, who disclosed this, described the situation as alarming and called for the strengthening of the preventive campaign.
He was giving an overview of the health situation in the region at this year’s regional health manager’s seminar at Sunyani. Dr Asare explained that, overall, AIDS was the fourth largest killer in the region last year after anaemia, malaria and pneumonia.
The regional director said malaria still remains the number one cause of admissions in hospitals in the region followed by anaemia and attributed the problem to in-sanitary conditions in the communities. He, therefore, called on the district assemblies to strengthen their environmental sanitation programmes and also called on the people to patronise the impregnated mosquito nets.
He warned that Sunyani could face an outbreak of typhoid in the next four weeks, if efforts are not made to address the water shortage problem that has hit the town.
The director expressed concern about the increasing rate of teenage pregnancy in the region and disclosed that last year 221 teenage girls became pregnant. “What is even more serious is that children as young as 10 years were becoming pregnant,” he said.
Dr Asare also described maternal deaths which stood at 102 last year as unacceptable and urged pregnant women to ensure that they deliver at approved health institutions. He stated that the region is the only one in the country that has extended the government’s exemption policy for pregnant women to take advantage of the situation to reduce maternal mortality.
He said the health insurance scheme is catching up fast with the people of the region with four districts now operating the scheme. He mentioned some of the problems facing health delivery in the region as lack of personnel, especially doctors and nurses, and inadequate accommodation.
The Omanhene of Dwenem, Nana Bofo Bene IV, who chaired the function, commended health personnel for their efforts at working to change the face of health delivery for the better. He pledged the support of chiefs in the region for health personnel. - Daily Graphic
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Ato Dadzie, the fifth accused person in the ongoing Quality Grain trial has indicated that he no longer needs former President Jerry Rawlings to testify on his behalf. When the court resumed sitting on Thursday, counsel for the accused, Nana Adjei Ampofo informed it that evidence of the former President was no longer necessary. According to him evidence so far given by his client before the court was enough to acquit him.
At an earlier sitting of the court on January 31, 2002, Nana Ampofo had indicated to the court that his client would like to invite Flt-Lt Rawlings to testify for him because his evidence might be crucial for the case. However, the counsel informed the court this morning (Thursday) that he had consulted other lawyers on the defence side and believed that the former President was no longer needed to testify in the case.
He said another witness who should have testified was also dead and, therefore, he had decided to close his case. Nana Ampofo further informed the court that his client had decided not to continue with his appeal of “no case” at the Court of Appeal, under protest.
He said this is because whereas the Constitutional Instrument 19 mandates his client to get records of the proceedings free of charge, the Court Registry is insisting that Ato Dadzie should pay ¢4 million as cost.
Counsel indicated that since his client is jobless and had already exhausted his purse, he cannot proceed with the appeal. The trial Judge, Justice Kwame Afreh, an Appeal Court Judge sitting as an additional High Court Judge, asked counsel to direct his protest to the Chief Justice, since it was an administrative matter.
Meanwhile, Justice Afreh has issued an order requesting the Inspector-General of Police to extend to the accused persons the same facilities he granted to the Republic.
This, he said, would enable their witnesses to get access to the project site at Aveyime in the Volta Region. The order was issued after counsel for the third accused, Mr Kweku Baah, told the court that he had not got the needed permission from the police to enable experts who are to testify for his client to visit the site. According to him the experts, some of whom are from abroad would only be able to testify after assessing the entire project.
A former Finance Minister, Kwame Peprah and four other former public officials are standing trial at the Fast Track High Court for their alleged role in the Quality Grain Company scandal that led to the loss of $20 million to the State.
Those in the dock with him are, Ibrahim Adam, a former Food and Agriculture Minister, Samuel Dapaah, a former Chief Director of the Food and Agriculture Ministry, George Sipa Yankey, a former legal Director to the Ministry of Finance, and Ato Dadzie, a former Chief of Staff at the Castle. They have all pleaded not guilty t the charges of conspiracy and wilfully causing financial loss to the state and have been granted self-cognisance bail. - The Evening News.
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The Ashanti New Town Community Tribunal in Kumasi, on Thursday committed Nana Saaman Nantwi II, Asantehene's Saamanhene and two others to stand trial at a Kumasi High Court for attempted murder.
The two others are Kwaku Addae and Agyekum, both relations of the Saamanhene. They were granted self-congnisance bail to report before the Kumasi High Court next Tuesday.
Giving the facts of the case, Mr Agyeman Duodu, a Senior State Attorney, said that on November 5, 1995, Nana Saaman Nantwi went to Anwiem near Sewua, on the Kumasi-Lake Bosomtwe road, to join his uncle, Nana Gyebi Appau II, chief of Anwiem, to observe the 'Akwasidae' rites.
Nana Appau and the chief of Sewua, Nana Adusei-Opoku, had been engaged in a chieftaincy dispute. On his way to Anwiem, the Saamanhene passed through Sewua to perform some customary rites. After the celebration of the 'Akwasidae' at Amwiem, he was seen leading a procession from the town with a gun.
On reaching a roundabout near Nana Adusei-Opoku's Palace, the Saamanhene's procession started throwing stones into the palace. The family members of the chief Sewua who were also observing the 'Akwasidea' rites, responded by throwing stones at the attackers.
In the ensuing confrontation, the Saamanhene shot and wounded Kwaku Antwi, a citizen of Sewua, who was standing in front of the palace. The second accused, Addai also shot and wounded another person, Kwaku Manu, while the third accused, Agyekum, armed with cutlass, attacked and shot another person, Wofa Adu.
The victims were treated and discharged at the Komfo Anokye Teaching Hospital (KATH). The accused was charged with the offence after thorough police investigations. Mr Dennis Adjei, counsel for the accused, argued that although there was a confrontation between factions in the town on the day in question, his clients had nothing to do with the firing of guns and cutlass attacks. -The Ghanaian Times
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The Internal Revenue Service (IRS) has increased by 150 per cent, the income tax rates for taxis and tro-tros with effect from March. The move is to enable the service to raise a total ¢28 billion from all commercial transport owners, as against the ¢4 billion realised last year.
But transport fares are not to be affected. Taxis and cars on hire within town and tro-tro vehicles with 19 seats and less will now pay ¢5,000 instead of ¢2,000, while tro-tro vehicles with 20-24 seats would pay ¢7,500 instead of ¢3,000.
The Commissioner of Internal Revenue, Mrs Janet Opoku-Acheampong, announced these at a news conference in Accra on Thursday. It was attended by representatives of the Ghana Private Road Transport Union (GPRTU), the Progressive Transport Owners Association (PROTOA), the Greater Accra Co-operative Transport Union and the Ghana Haulage Truck Drivers Association.
According to Mrs Opoku-Acheampong, the increment would be borne by the transport owner and not the commercial driver thus transport “fares should not go up”.
She said the move was to enhance revenue mobilzation within the transport sector of the economy, adding that it was fair and equitable to call upon transport owners to contribute their quota to the national coffer.
She said that the rates for one-pound one-pound cars, mini buses other than tro-tros, long distance passenger buses, container trucks in Accra-Tema, long distances cargo trucks and articulated vehicles as well as wet cargo vehicles, including water tankers and tipper trucks, remain unchanged. – The Ghanaian Times
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Officials at the National Commission on Culture (NCC) are at their wits end as to how to prevent the press from exposing the embezzlement of millions of cedis at their Regional Centres until they find money to satisfy the staff whose monies have been embezzled.
Investigations conducted by your authoritative ‘Ghana Palaver’ indicates that there is an agitation going on at some Regional Centres for National Culture over an arrears due the staff, for which the Minister of Finance has released funds for payment for the period April to December 2000, but which for no apparent reason, have not been paid up till now.
A very reliable source at the NCC told the paper that the arrears cover the period from April to December 2000, on the percentage basis of 16 per cent fro junior staff, 11 per cent for middle level staff and seven per cent for Directors.
According to the source, similar arrears covering the period March to December the same year, was paid to the staff but the second release for April to December 2000 was kept a secret from the staff by some Directors until some members of the staff at Cape Coast uncovered the deal and requested their Director to pay them.
The Director has since refused to pay the staff with the excuse that the money was at the bank. The Director’s refusal to pay the staff, the source said, prompted one of the staff, Elolo Gharbin to petition the Dean of Directors of CNCs, who is also the Director in charge of the Western Region to ascertain the truth or otherwise of the allegation.
A meeting was quickly convened by the Director for Cape Coast and Mr Elolo Gharbin to cool down tempers but since the money was not paid, Mr Gharbin decided to petition the Chairman of the CNC to investigate the matter. Another source at the Serious Fraud Office (SFO), who are investigating the circumstances surrounding the said misappropriation confirmed the story saying the amount runs into millions of cedis. – Ghana Palaver
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Managers of
the Kaneshie Market have expressed regret for allowing the tobacco giant,
British American Tobacco (BAT) to paint a huge advertisement on the imposing
building. “If we had been educated earlier about cigarette advertising, we
would not have allowed that advert on the building” the General Manager of the
Accra Markets Limited (AML), Henry Kwame Amporful told Weekend Agenda.
AML’s
remorse clearly comes in the wake of angry cry out from both the general public
and the Ministry of local Government and Rural Development against the huge
outdoor advertisement adoring cigarette smoking. And in response, BAT has
officially announced the removal of the controversial London branding advertisement
on Kaneshie Market.
In
addition, a similarly huge ad on the Kejetia Market in Kumasi will also be
painted over by the end of this week and the next.
Strikingly,
AML’s Deputy General Manager, Kwaku Kra-Gyamera emphatically said, in an
interview published by our sister paper ‘Public Agenda’ a fortnight ago that
the primary objective of the market managers is to maximize profit.
And in a
“typically to hell with them” posturing, Kra-Gyamera dismissed both medical
experts advice and public out cry insisting that “so far we are operating in
the confines of the laws of Ghana.”
The
reluctant decision to remove the ads was announced by BAT’s Marketing,
Corporate and Regulatory Affairs Director, Kwaku Baka. But the tobacco company
maintains, “we have not flouted any law on advertising.”
In staunch
defense of the company’s action Baka remarked, “we have for the past 20 years
not advertised our brands on radio, television and in the newspapers. We have
limited our mass media communication to outdoor only” and also pointed out that
all their advertising conformed to government standards by carrying the
necessary Ministry of Health warning clauses.
Despite the
adverts clearly being in prominent positions for children of all ages to see,
Baka failed to spot the hypocrisy and emphasized BAT’s concern for youngsters
who might be induced to take up smoking, stating that “as a manifestation of
our position that minors should not smoke because smoking is an adult choice,
we recently launched a Youth Smoking Prevention Campaign and advocated for
passing of legislation against sale of cigarette to minors.”
The ads,
which particularly came under severe criticism from Prof. Agyeman Badu Akosa,
Ghana’s Chief Pathologist and Kwadwo Baah-Wiredu, Minister of Local Government
and Rural Development, are being removed at a cost of some ¢11 million,
augmented by the fact that BAT had paid for the advertising space up front
until the month of July this year.
Yet, a top
official of the multinational company who does not want to be identified told
Weekend Agenda on Wednesday that the fiasco would not cause them to rethink
their advertising policies which are already affected by internal guidelines
anyway.
The company
continues to advertise on billboards around the country, in conformity to legal
guidelines but as in the Kaneshie and Kejetia market cases, not always to
public perceptions of good taste. And what an irony! “No smoking” signs are
posted on the walls and stairs leading to the upper floors of both markets. -
Weekend Agenda
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As most of
the country’s pensioners embarrass the population by throwing their paltry pensions
at public conscience, a forensic audit report commissioned by government into
the financial operations of the Social Security and National Insurance Trust
(SSNIT), has uncovered a cocktail of fraud and mismanagement engineered by
managers of the fund running into billions of cedis. The report puts the amount
lost to the state in the excess of 400 billion cedis.
Chief
perpetrators of the fraud, the audit report reveals are the two immediate past
Director Generals of the SSNIT Charles Asare and Henry Dei, both identified
agents of the National Democratic Congress (NDC) of Flt Lt. Jerry Rawlings.
Other highly placed official that are held liable for some of the losses are
Messrs Asiedu Gyamfi, Twum Mensah, Ernest Thompson, Biga, Dr Odoom and
Wilberforce all of SSNIT.
Among some
of the wrong actions the report cited include, overpricing of a property SSNIT
acquired from CFAO, the Massilla House, and the inappropriate payment of real
estate agency fee by SSNIT. SSNIT lost an amount of about ¢5 billion cedis in
that action and the audit found Charles Asare, Asiedu Gyamfi, Enterprise
Insurance, Data Bank and Awonoor Law Consultancy responsible for the loss.
The report
recommended that SSNIT should take over the property and all officers and firms
involved in the transaction should be prosecuted for fraud. Aside that the
report held two officials Charles Asare and Twum Mensah liable for the loss of
the sum of ¢528 million cedis for payment of variation cost in excess of the
approved amount. The report recommended that the officers should be made to
refund the lost amount.
Another
trait that was glaring in the report was losses that SSNIT had suffered due to
bad investments and management practices. The roll call of some of the losses
suffered includes investments in the Ogua and Golden Beach hotels projects.
The report
revealed that SSNIT entered into the Ogua Hotels venture without independent
appraisal of the viability of the project. It also entered into the venture
without Shareholders Agreement.
Aside that,
SSNIT provided loans without the Board’s approval and they loans were neither
covered by any loan agreement. The Trust lost ¢2.3 billion in that venture. The
report recommended that SSNIT should review the shareholding structure of the
company by converting all loans into equity.
In its
Golden Beach hotels investments, SSNIT lost an amount of about ¢153 billion
from double payments to the financial and legal consultants in that investments
- the Strategic Africa Securities Ltd. SSNIT also paid for the short delivery
of about 230 rooms in that investment.
The report
recommended that SSNIT should pursue legal action to retrieve the amount, or
annex Rexol’s 30 percent shares, or repudiate merger agreements. It also
recommended that SSNIT should retrieve double payment from the consultants.
Also, Charles Asare and Asiedu Gyamfi must be prosecuted for recklessly causing
financial loss to SSNIT.
Other
investments losses include losing the sum of ¢20.6 billion in its investment in
Bridal Trust, losing ¢570 million cedis in the Aluworks Share Sale and excess
payment of acquired shares in the Grand Regency Hotel and non-payment of share
contribution from its partner, J. Stanley Owusu. SSNIT lost an amount of about
¢1.5 billion from those dealings.
Its also
lost ¢74 billon in its investment in Wahome, due to mismanagement, and about
¢2.3 billion in its BMK Particle Board investment. Other losses include ¢5.7
billion lost through default of a SSNIT loan by FIDAN Construction Ltd and 100
percent provision for bad debt with recourse to collateral, excess payment to
project consultant in the Legon Students Hostel to the tune of ¢528 million
cedis and manipulation of the bid process for the purchase of computers which
SSNIT lost ¢1 billion.
The Trust
lost about ¢19.3 billion in a transaction with Blessblock and Regimanuel Gray
and another ¢18.5 billion on transaction with SIAT International and Africa
Tiger Mutual Funds.
The public
had hints of the grand misappropriation in SSNIT, late last year. The
Commission on Human Rights and Administration Justice (CHRAJ) has just released
another damning report that indicted some officials of the Scheme. The IMF
report circulated in March 2000, predicted a gloomy future for SSNIT. The
report said the administrative expenses of SSNIT were growing much faster than
the projected.
“SSNIT’s
staff of 2,700 is very large for a scheme with only 500,000 people and
administrative expenses are a very high of 22 percent of contributions, or 4.2
percent of funds invested,” the IMF report said.
Reacting,
K. Osei Bimpong, Head of Public Affairs issued a press statement addressed to
media houses acknowledging that the Ministry of Finance had furnished the
organization with a copy of the audit report.
“The board
of Directors of SSNIT” he wrote, “has reviewed the report of the Forensic Audit
and is liaising with the relevant security agencies to assist in further
investigation to unearth the pertinent facts in each case. The Board will do
all in its power to protect the interest of the Trust and institute measures to
ensure transparency.”
The
statement said SSNIT was aware of public interest on the issue and advised all
stakeholders to hold their peace until the outcome of the review. “The Board
further assures the public that the Board and management are in full control of
the situation and are working expeditiously to resolve all issues related to
the audit findings,” Osei Bimpong added. – Weekend Agenda.
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