GHS10m ADB loan: I did no wrong – Ofori-Atta

Finance Minister Ken Ofori-Atta has denied committing any wrong as far as the granting of a GHS10.5million loan from the Agricultural Development Bank (ADB) to McDan Shipping Company is concerned.

The Minority in Parliament on Tuesday, 5 September accused the New Patriotic Party (NPP) government of blatant disregard for the procurement laws of the country in the award of contracts and loans following the approval of a GHS10,459,500 million loan from ADB to MacDan Shipping Company.

Addressing the media, Minority Leader, Haruna Iddrisu, said the action of the Finance Minister is a breach of the procurement processes and rules since most of the boards and Council of State institutions have not been constituted including the ADB Board.

“Serious questions arise as to whether they have demonstrated respect to our procurement processes. Was the contract awarded using the sole-sourcing process? If the answer is yes, then the law requires the approval by the Public Procurement Authority, where is the board of the Public Procurement Authority, we are not aware that it has been constituted,” he stated.

He was of the view that government declared zero tolerance for sole-sourcing and whether the contract was sole-sourcing or competitive tender, the government has still flouted the laws by its conduct on the contract.

Mr Iddrisu said: “There’s disrespect for public procurement processes. … We are questioning the breaches of legal processes, laws that have been so disrespected, laws that they profess that they will honour, that is our concern.

“If it is a matter that you think that we have a generous Finance Minister, let him extend that same generosity to every private company in need of support,

“Non-performing loans is what affected Capital Bank and UT Bank… we don’t want what befell UT and Capital [to befall ADB]. … It [ADB] is not wholly government-owned as it used to be the case,” he added.

Also at the press conference was former Deputy Finance Minister Cassiel Ato Forson, who said the letter written by the Finance Ministry for the suppliers credit to be granted to McDan said: “… ‘They should give the money to the company and do due diligence later.’ You think this is a good letter? This is something that we should be asking questions about. …The tone of the letter is a complete usurpation of the powers of the board of directors [of ADB]. The Ministry of Finance cannot assume the powers of the board of directors.”

Mr Ofori-Atta, however, said with banking transaction, the credit committee goes through and then makes their recommendation. “I would imagine that on my part, it was the right thing.”