Two former ministers, top public servants in court over Quality Grain scandal
Accra (Greater Accra) 24 May 2001
Five senior public officials from 1996 to 2000, including two ex-ministers, charged variously with conspiracy and wilfully causing financial loss to the state in the Quality Grain scandal, on Wednesday appeared before the Fast Track High Court, in Accra.
The accused persons are Ibrahim Adam, Minister of Food and Agriculture from 1994 to 1996, Dr Samuel Dapaah, until recently the Chief Director of the Ministry of Food and Agriculture and Kwame Peprah, Minister of Finance from 1995 until 2000.
The rest are Ato Dadzie, Acting Chief of Staff of the Office of the President from 1994 to 2000 and Kwesi Ahwoi, Chief Executive of the Ghana Investment Promotion Centre.
Dr George Yankey, who was the Director of the Legal Sector Private and Financial Institutions Division of the Ministry of Finance, was not in court.
They all denied the charges, saying they are innocent.
The court presided over by Mr Justice Kwame Afreh admitted them to self-cognisance bail. The case is rescheduled for June 6.
The accused persons were all senior public officials between 1994 and 2000 when the events and acts forming the basis of the charges laid against them took place.
Nana Akufo-Addo, Attorney General, told the court that the former government, desirous of external finance to execute a rice farming and milling project that would eventually make the country self-sufficient, agreed in 1995 to accept funds from foreign lending institutions to be supported by the US Export-Import (Exim) Bank.
He said an important condition of the Exim Bank guarantee of funding was that the government would hold 76 per cent of the shares, while the US investor would hold 24 per cent in a joint venture company, which was required to execute the project.
He said evidence would be led to show that Ms Renee Woodard, later Mrs Cotton, an African-American, who had earlier in 1994 met ex-President Rawlings and Adam during an investment promotion drive in the US, renewed her contact with Adam, and learned of the Exim Bank facility.
He said from the beginning of 1994 until the end of 2000, the accused persons conspired in several and diverse ways, by their wilful acts and conduct and misrepresentations, to cause huge financial loss to the state.
"Notwithstanding the fact that there was ambiguous official information already available to (the) government and GIPC as far back as 1991, exposing the notorious Renee Woodard and her American company as a fraud, Renne Woodard and her Quality Grain Company Incorporated were presented to (the) government by Adam, as experienced rice farmers, who would bring their rich experience and expertise to bear on irrigation rice farming on the Aveyime rice project."
Nana Akufo-Addo said that Adam wilfully assisted Mrs Cotton to establish two companies, both by the name, Quality Grain Company Limited, with the same objects of business and the same Chief Executive Officer.
Nana Akufo-Addo said the first Quality Grain Company Ghana Limited was a wholly foreign owned company, and the second was purported to be a joint venture between the government and Mrs Cotton. However, the second company did not come into existence and "its documents of incorporation constitute a veritable litany of fraud."
"Yet parliament was misled to approve in July 1996 an Exim Bank credit facility in favour of this non-existent company."
He added that "a company whose application forms for incorporation were filed at the Registrar of Companies on November 13, 1996, had its certificate of incorporation issued to it on February 1, 1996 and its certificate to commence business issued to it on February 2, 1996."
He said in addition to the first loan agreement, Peprah and Yankey wilfully committed the government to guaranteeing two other loan agreements totalling 13.3 million US dollars without parliamentary approval.
"This is in flagrant violation of the Constitution of the Republic and Loan's Act."
He said this brought to an over all total of approximately 20 million US dollars of external funds, which the government guaranteed in favour of the phantom joint venture company to execute an irrigation rice production project at Aveyime in the Volta Region.
Nana Akufo-Addo submitted that neither Mrs Cotton nor her US company, the purported investors, invested a single cent. "They were in truth no investors, but rather consummate fraudsters and looters, who were actively assisted by Peprah in causing massive financial loss to the state."
The Attorney General submitted further that the prosecution will show that the accused persons knew that by virtue of guaranteeing the loans and by being a purported shareholder in the phantom joint venture company, the government had acquired an interest in the expenditure of the loan funds and that in the execution of the project the government's interest had to be secured.
Nana Akufo-Addo noted that these further obligations amount to 1.9 million dollars, resulting in an overall liability of over 22 million dollars for a project that at its very inception was estimated at 4.8 million dollars in design.
"The facts of this case have led to a prosecution that, to my knowledge, is without precedent in the history of our criminal law."
"The chapter under which the accused persons have been charged, Chapter 4 of
Part III of the Criminal Code ("Offences against property") headed "Special Offences," was incorporated into the Code by an Act of Parliament in 1993, at a time when Adam, Peprah and Dadzie were senior members of the executive at whose instigation these new laws were made,"
He again noted that these new laws were themselves a carry-over from the allegedly revolutionary era of the PNDC, in which these accused persons played important roles.
Nana Akufo-Addo said even though these laws have been applied before, they have never been applied to public officials of the quality and seniority like the accused persons.
He said the docket was prepared by the investigator at a time when the accused persons were all in office, and that it was a docket on his desk when he took office. It is a docket prepared on the basis of laws that were already part of the Criminal Code.
"These laws are not new laws being retrospectively or retroactively applied," he said. "Criminal laws, cannot be a respecter of persons."
Mr Kwaku Baah, Leading Defence Counsel, told the court that a person who is sent to the court should have a clear knowledge of what he/she is being accused of.
Mr Baah argued that his clients did not know the charge preferred against them until Wednesday morning.
On this basis he sought relief to adjourn the case by way of staying the proceedings.
Mr Baah argued further that all the accused persons have pleaded not guilty to the charges and have, therefore, rejected the offence.
The court asked counsel to send formal application on what he raised.
In response the Attorney General said that it is not the National Democratic Congress that is accused. This is a summary of proceeding and not an indictment, for the defence to have an idea about it, he said.
The Attorney-General did not oppose bail for the accused persons, saying he did not think that they would jump bail, since they are all senior citizens. The court also asked defence lawyers to co-operate for a speedy trial.
Journalists covering the case were also advised not to give judgement in their reports, but to let the reports reflect the exact proceedings to enable the reading public to be in the proper frame of mind to understand the proceedings.
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Accra (Greater Accra) 24 May 2001
Mr Ambrose Derry, Counsel for Mallam Yusuf Isa, ex-Youth and Sports Minister, on Wednesday told the Fast Track Court that the prosecution lacked the support of certain vital witnesses to establish the guilt of his client.
In his submission of no case against the accused, Mr Derry said the ex-minister's bodyguard and one Alhassan believed to have been present when Mallam Isa put the money into the controversial green suitcase were not invited for questioning.
Mallam Isa is charged with stealing 46,000 dollars and fraudulently causing financial loss to the state. He has pleaded not guilty and is on 500 million cedis bail.
Counsel said the evidence was circumstantial and inadequate, and the witnesses were unconvincing.
He said for instance, officials of the Royal Dutch Airlines (KLM), Lufthansa Airlines and the two Sudanese officials who were reported to have announced the arrival of the suitcase in Sudan had not been invited before the court.
Mr Derry said all the 11 witnesses could not give ample evidence that the 46,000 dollars was put in the green suitcase and added that Mallam Isa was being used as a sacrificial lamb to discourage others from stealing in line with the Executive's policy of "zero tolerance for corruption."
Counsel said ASP Vance Baba Gariba of the Police Headquarters was not a credible witness because he lied to the court that the only way the money could be removed from the suitcase was by the use of force.
He said the ASP had earlier contradicted himself that one could only use the combination lock between eight and 24 hours depending on one's acumen to open the suitcase.
Mr Derry said ASP Gariba lied by saying there was no way the suitcase could be repaired locally.
He said his client had no control of the suitcase when it left the Kotoka International Airport and was therefore not in a position to know what might have gone on.
Mr Derry disputed the two counts of stealing and fraudulently causing financial loss to the state and said it has been the practice with soccer officials to travel with physical cash.
He said the idea of travelling with the money was brought up by Emmanuel Owusu Ansah, Vice Chairman of the Ghana Football Association, who had argued that the players would demand the money for their per diem on arrival.
"How can someone who had earlier rejected a high budget of 200,000 dollars for the Sudan trip, questioned a 450 million cedis bill for the purchase of football and the transfer of the Black Stars from the Wangara Hotel to Swedru for cheaper rates and good facilities, all of a sudden turn to steal 46,000 dollars?"
He said because of his client's bad blood with his subordinates he was ditched.
Mr Derry contended that Detective Inspector Hope Kwaku Nyadi contradicted himself when said he did not find 2,500 pounds sterling during a search in the ex-minister's residence after earlier evidence that the money was found.
He said the audit report found in Mallam Isa's house could not have been the one in the suitcase since it was "a report and not the report".
The prosecution will reply on Thursday.
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Accra (Greater Accra) 24 May 2001
The Chief of Staff and Minister of Presidential Affairs, Mr Jake Obetsebi-Lamptey is to appear before the Commission on the Accra Sports Stadium Disaster on Friday.
A statement signed by Mrs Regina Apotsi, Secretary to the Commission on Thursday said Mr Samuel B. Boakye, Director of Finance/Administration, Association of Ghana Industries, is also to report on Friday.
It said four Assistant Superintendents of Police who were asked to report on Wednesday are to report on Thursday.
They are Mr John Naami, Mr B.B. Bakomora, Mr Frank Awu and Mr E. Faakye Kumi.
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Kumasi (Ashanti Region) 24 May 2001
A circuit tribunal in Kumasi has imposed a one million cedi-fine on James Acquah, a taxi driver for jumping the traffic lights at the inter-section near the COCOBOD Jubilee House and A-Life Stores at Adum, Kumasi.
He pleaded guilty to three counts of jumping traffic, driving without licence and driving an uninsured car. He will serve a 12-month jail sentence in default.
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Tema (Greater Accra) 24 May 2001
A Tema High Court presided over by Mrs Felicity Amoah would decide on April 6 whether 647 ex-employees of the former Achimota Brewery Company (ABC) are entitled to their full severance awards after the company was divested in 1992.
This follows a suit brought against the Divestiture Implementation Committee (DIC) by the workers, who are arguing that their severance award should have been based on the number of years served as stipulated in their Collective Bargaining Agreement (CBA) instead of the 14 months flat rate offered them.
Mr Justice E. K. Jones-Mensah, counsel for the ex-workers argued that the workers, who served between two to 23 years petitioned the Commissioner for Human Rights and Administrative Justice (CHIRAJ) for redress but it could not settle the matter.
He said the plaintiffs aver that they were unlawfully underpaid their just entitlements.
The DIC is, however, arguing that the 14 months salary severance pay for each employee was arrived at after negotiations at the Ministry of Employment with the workers.
It said the workers were at that time represented by Mr S. A. X. Tsegah, a solicitor and their union and the amount given them was just and fair.
The negotiations did, therefore, not contradict NLCD 342, which says that severance award shall always be a subject of negotiations.
The DIC said the plaintiffs do not belong to the class of workers whose severance pay need to be computed based on length of service.
The court, in a similar case last Tuesday, ordered the payment of full severance awards to 980 ex-employees of the former State Construction Corporation (SCC) when DIC's lawyer agreed in principle that the DIC had no defence.
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