There is credible information to underscore that CARIDEM DEVELOPMENT COMPANY (CDC) - which is owned by a group of top National Democratic Congress (NDC) members led by the former First Lady, Nana Konadu Agyeman-Rawlings - took a loan of US$500,000 (?750 million) on 28 November, 1997, from Government funds (TRIP/TIP) managed by Ecobank, to facilitate its procurement of GIHOC Nsawam Cannery Limited. Former Deputy Finance Minister, Mr Victory Selormey okayed the loan deal.
The Crusading Guide's investigations has revealed that CDC paid ?2,789,000,000.00 to the Divestiture Implementation Committee (DIC) for the acquisition of Nsawam Cannery Limited. The Government loan granted CARIDEM Development Company, according to our findings, only attracted 15% interest.
Although a source at the Ministry of Finance had hinted that the loan was taken in 1997 as quoted above, the payment schedule for the acquisition of the Cannery began on 2 January 1995. On that date, ?274,984,600.00 was paid.
Other payments were made by CARIDEM on 9 July 1997 (?10,000,000.00); 17 December 1998 (?80,000,000.00); 7 May 1999 (?50,000,000.00) and 26 May 2000 (?459,085,000.00). Interestingly, it took the company six years to finish paying up for the purchase consideration as stated in the 5 October 2000 Sales Agreement.
Our source quipped, "It could have traded with Government's own money at the prevailing Treasury Bills average rate of 45% between 1997 and 2000 and could have realised undeserved profits of ?1,536,468,750; thus being able to pay for the assets without even being able to pay for the assets without even investing a pessewa of its own money and making unauthorised profit",
As at 30 November 1999, the principal and interest on the payment for the purchase consideration for Nsawam Cannery (outstanding interest accrued), had accumulated to ?7,455,345,536.11 of which only ?559,085,000 had been paid to the DIC as at 31 December 2000.
In February 2001, Caridem paid ?1,319,930,400 to liquidate the principal amount without any mention of ?8,378,558,797", a source close to the Auditor-General's Department has intimated.
The amount outstanding as at 19 August 2002 on the Ecobank (TRIP/TIP) loan deal, according to the source, was ?1,911,575,293.73 and that that was made up of principal amount of ?750,000,000 plus accrued interest of ?1,161,575,293.773.
The sale of Nsawam Cannery Limited was not put on competitive tender as one of the Directors (Guess Who?) used her membership of the Divestiture Implementation Committee to enable the purchase to be effected in-house.
Properties of Nsawam Cannery were valued by the Land Valuation Board. The internal regulation of DIC requires that valuations above two years should not be used as basis for divestiture. Such valuations should be updated or new valuations should be caused to be made for the purpose of divestiture.
According to our source, "This valuation requirement was not followed in the acquisition of the Cannery by Caridem. The divestiture took place in 1995 but the valuation figures of 1991 were used. These valuation figures were outdated and so the value of the properties were found to be on the low side".
In the Vol.4 No.69: 3-9 September 2002 edition of The Crusading Guide, it was indicated that Caridem's purchase of Nsawam Cannery Limited - a State-owned Enterprise was under probe.
It was also recalled that as far back as 1986, Mr. Kofi Totobi Quakye, then Secretary for Information under the PNDC Government, publicly stated that "it was not the intention of the leadership of the country to allow individuals a field day by up State enterprises and end up creating unearned wealth for any particular group of people?".
