Appointment of Labianca CEO to Port and Harbours Board indicative of a decline in governance standards – CDD

The Ghana Center for Democratic Development (CDD) has waded into issues regarding the Special Prosecutor’s investigative report into the activities of Labianca Company owned by Eunice Jacqueline Buah Asomah-Hinneh.

According to CDD, the appointment of the CEO of Labianca who also doubles as a member of the Council State to the management Board of the Ghana Ports and Harbours Autority is indicative of the falling standards of governance in the country.

“It is obvious that the entire sordid episode speaks specifically to the entrenchment of incumbent leaders and political elite capture of Ghana; and generally, to the alarming decline in governance standards in our 4th Republic. Therefore, as a recommendation, this unfortunate event highlights the urgent need for an ethics czar at the Presidency, Executive Branch, Council of State, and other important decision-making and public resource allocation agencies and institutions,” it said.

CDD in a statement signed by its Co-Founder, Dr Gyimah-Boadu, raised questions about Ms Asomah-Hinneh’s appointment by the president as a Board Member of the Ghana Ports and Harbours Authority.

“Firstly, should the President appoint an individual to serve on the board of a public agency with whom that individual has private business dealings? And if so, doesn’t that set that person up for conflict of interest?” portions of the statement indicated.

On the grounds of conflict of interest, CDD further questioned the appropriateness of her appointment while also raising a question of self-dealing over the appointment of the CEO whose company was indicted by the Special Prosecutor for influence peddling and tax evasion.

“Secondly, is it appropriate for the President to appoint a member of the Council of State to a state agency board? Was there an objectively compelling public interest-related reason for the President to make such an appointment?

“And finally, was the appointment run by the Council of State? And if the answer is yes, doesn’t the Council of State’s approval of the appointment of one of its members to a state agency board position smack of institutional self-dealing on the part of Council of State?’’ the statement questioned.



Background

The OSP on August 3, 2022, released a report on its investigations into alleged corruption and corruption-related offences involving Labianca Group of Companies and the Customs Division of the Ghana Revenue Authority.

The report by the OSP among other things implicated officials of Labianca and the Customs Division of GRA for their various roles which saw the company that deals in the importation of frozen foods benefiting a reduction in the company’s tax liabilities.

Eunice Jacqueline Buah Asomah-Hinneh, the owner of Labianca Company Limited and a Council of State member was implicated in the report for influence peddling. She was accused of using her position to get a favourable decision from the GRA leading to a reduction in her company’s tax liabilities.

The investigative report from the OSP which was titled: “Report of Investigation into Alleged Commission of Corruption and Corruption Related Offences involving Labianca Group of Companies and the Customs Division of the Ghana Revenue Authority” indicated that the frozen foods company owner used her position to evade taxes.

The OSP also disclosed that an amount of ¢1.074 million was recovered from Labianca Company Limited.

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