Finance Ministry guaranteed loans for Quality Grain -Witness

A prosecution witness on Monday said the Ministry of Finance guaranteed various loans for the Quality Grain, Ghana Limited for its rice project at Aveyime in the Volta Region.

Mr Theophilus Cudjoe, Deputy Director, (Investigations) of the Serious Fraud Office (SFO), told the Fast Track Court trying six persons including two former Ministers of State that the loans were different from the 21 million dollars the government guaranteed for the company.


Led in evidence by Mr Osafo Sampong, Director of Public Prosecutions (DPP), witness said the Finance Ministry guaranteed two different 60,000-dollar loans from the Ecobank and Trade and Investment Project Fund of the Gateway Secretariat, 35,000-dollar credit facility from Ecobank and a 240-million cedi loan for provision of utility services at the project site.


Other loans contracted were 300 million cedis for settlement of fuel debts and 50 million cedis for payment of salaries of workers at the project.


Mr Cudjoe said with the exception of the 50 million-cedi loan, which was guaranteed by Dr Samuel Dapaah, former Chief Director at the Ministry of Food and Agriculture (MOFA), the second accused person, the rest were signed by Dr George Yankey, a former Director at the Finance Ministry, the fourth accused.


Witness tendered documents covering the loans. The accused persons are Ibrahim Adam, Ex- Food and Agriculture Minister, Kwame Peprah, Ex-Finance Minister, Nana Ato Dadzie and Kwesi Ahwoi, former senior public officials.

They have pleaded not guilty to conspiracy and wilfully causing financial loss to the state and each of them is on a self-recognisance bail.


Mr Cudjoe said during investigations into the operations of the company, he received a certified copy of record of proceedings from a high court in Atlanta, Georgia of a civil case between two directors of the Quality Grain Incorporated in the US on one side and Ms Juliet Woodard, who is also a director.


Witness said in the records, he found an affidavit sworn by Dr Yankey at the request of Ms Woodard, who is the sole owner of the Quality Grain Ghana Ltd.


He said the affidavit talked about the position of the government on the loans it guaranteed for the company and later tendered it. Hearing continues on Tuesday, October 16.