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General News Mon, 19 Jun 2006

?5Bn Scandal Rocks PMMC

..MD interdicted

PRECIOUS MINERALS Marketing Company (PMMC) Ltd., a State-owned enterprise in charge of marketing and promoting of the nation?s precious minerals has been rocked with financial scandal running into several billions of cedis. The deal, according to insiders has left PMMC gasping for financial breath. The fallout from the scandal has resulted the board interdicting the Managing Director of the company, Mr. Peter Boakye who is said to be one of the key players in the episosde.

THE SUN intelligence sources says some powerful forces were moving doggedly to revoke the interdiction into a normal working leave. THE SUN gathered that following a financial crisis in the company board?s sub-committee on Finance, an Audit decided to delve into the records of the company to arrest the situation.

After intensive investigations it was uncovered that the current M.D. Mr. Boakye and his predecessor Mr. R. D. Damptey in December 21, 2000 secretly entered into an agreement with Sian Goldfields Ltd and dolled out $550,000 over ?5 billion to the mining company under the guise of advance payment for the purchase of 3,000 ounces of gold. However, six years after the funds was released, Sian Goldfields is yet to supply a single ounce of gold for PMMC.

The Sun learnt that the so -called loan was granted without risk covered or proper collaterals.

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More seriously after his appointment as the MD of the company, Mr. Boakye who together with Damptey executed the deal has kept the transaction to himself as closely guided secret.

He refused to disclosed the deal to any of the board members not even the current board chairman, Mr. Samuel Adubofour who used to be his colleague in the company some years back. Apart from this,another burning issue concerning the dubious sales of the PMMC building at Dansoman would be featured in our next edition. When THE SUN reached Boakye last Thursday afternoon he refused to comment on the issue saying he would prefer to speak to the paper in August after he has resumed work..

However he later agreed to speak to the paper on Friday morning but when this reporter reached him on the appointed time he directed that the meeting be held at Adabraka Cathedral but he mysteriosly vanished from the premises as his phone was switched off at the appointment time.

THE SUN gathered that in December 22, 2000,when the nation was feverishly preparing for the election run-up, PMMC advanced $250,000 to Sian Goldfields as 1st installment of the $550,000 loan facility for the mining company. A month later January 31, 2001, $300,000 being the last installment was released to Sian Goldfields.

REPAYMENT Terms;

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THE SUN learnt that under the terms of the agreement Sian Goldfields Ltd was to sell all its gold production to PMMC for the repayment. The first sale of about 1000 ounces of gold was to commence on February 28, 2001, a month after the release of the $300,000 to the mining company.

Again under the agreement the mining company was to sell the gold to PMMC in a fixed price at 10% below the London Metal Exchange fixing on the day of delivery.

Also it was agreed that PMMC was to attach one staff to the mining company to ensure transparency in the delivery of the gold towards repayment. THE SUN gathered that the repayment was to last for 12 months with the expiring date fixed for February 28, 2002.

However almost six years now not a single gold ounce has been delivered by the mining company.

More details next week.

Source: Dominic Jale, dojale@yahoo.co.uk, (THE SUN)