The first prosecution witness in the Quality Grain Company case involving two ex-Ministers of State and four senior public officials on Tuesday, told the court that it was not permissible in Ghana to register two companies with similar objectives, interests and names.
That notwithstanding, two companies bearing the same name, Quality Grain Company Ghana Limited, were registered by the Registrar of Companies, one in July 1995 and the other in February 1996.
They had similar objectives but with almost different Directors.
The accused persons are Ibrahim Adam, former Minister of Food and Agriculture, Kwame Peprah, former Minister of Finance, Dr George Yankey, Nana Ato Dadzie and Kwesi Ahwoi all former government officials.
They are standing trial on charges of conspiracy and willfully causing financial loss to the state to the tune of 20 million dollars guaranteed in favour of the Quality Grain Company.
The company was to execute an irrigation rice production project at Aveyime in the Volta Region. The witness, Mr Joseph Kofi Harlley, Chief State Attorney with the Registrar Generals Department told the fast-track court that the second registration was done to protect the interest of the Ghana Government, which was not catered for during the registration of the first company. Witness said that in a situation where two companies are registered with similar names and objectives, the attention of the second company is drawn to the anomaly in order for it to change its name.
This was however, not done in the case of the two Quality Grain Companies registered in the country.
He explained that when the Registrar-General's Department detected the anomaly in the registration of the two companies, it called the attention of the second company which had its directors as Miss Juliet Renee-Woodard and Dr George Sefa Yankey, fourth accused, to the double registration. He said the company decided that it would merge with the first company, whose directors were Miss Juliet Renee-Woodard, Mr James McGarrh, both of the United States and Mr Bismark Nettey, a Ghanaian.
Renee at the time of incorporation of the second company in February 1996 told the Department that the interest of the government of Ghana was not catered for during the registration of the first company, hence the registration of the second company.
Witness said when he contacted Dr Yankey on the issue, he confirmed Ghana's interest to be at stake and urged witness to assist with registering the second company, which he did in order to protect the government's interest.
