India rice masters trouble deepens

as key witness mounts the witness box soo.

INDIA RICE MASTERS TROUBLE DEEPEN AS KEY WITNESS MOUNTS THE WITNESS BOX SOON The current investigation into the importation of 15 thousand metric tons of rice from India on behalf of the Government of Ghana by some officials of the erstwhile Kufuor regime is never-ending.

An India businessman with critical insight into the operations of a cartel of businesses spread across Africa and Asia will soon mount the witness box as a key/principal witness in what has become one of the biggest South South scandals.

Pronouncements of the witness are expected to enhance the Attorney General’s efforts to unravel the myth surrounding the importation of the rice and how some top government officials in Asia and Europe in cahoots with willing Ghanaian allies, skimmed 'profits' off rice exports from India.

Unimpeachable sources at the AG's office have hinted that the said witness will arrive in Ghana soon.

Akwasi Osei-Adjei, former Minister of Foreign Affairs, Regional Integration and NEPAD, and Daniel Charles Gyimah, former Managing Director of the National Investment Bank are in court in connection with the importation of 15,000 metric tons of rice from India.

The two are facing eight counts of conspiracy, contravention of the provisions of the Public Procurement Act (Act 663), use of public office for profit, stealing and willfully causing financial loss to the state to the tune of US$1,408,590 dollars.

They have pleaded not guilty at a Fast Track High Court to the various charges and have been admitted to bail in the sum GH¢200,000 with two sureties each.

The rice was to arrive in Ghana by May 2008 "to help curb the severe increase of the price of staples in Ghana" and the designated consignee was the Ghana National Procurement Agency.

Mr. Ansah, in another letter dated on April 10, 2008, addressed to the Minister of External Affairs of India, referred to an earlier meeting held between the ex-President John Agyekum Kufuor and the Minister of Commerce of India.

In that letter, Mr. Ansah drew attention to "severe food situation looming in Ghana" and sought to procure from the government of India 15,000 metric tons of low grade white 25 per cent broken rice for shipment to Ghana by June 2008. However, in April 2008, Osei-Adjei and the NIB took over the effort of Mr. Ansah and NIB somehow became the provider of Letters of Credit for the import and sole consignee for the rice.

Gyimah represented his bank and negotiated the terms of the contract for the export of the rice such that Amira Foods Limited instead of the India State Trading Corporation exported the rice to Ghana. Involvement of NIB and Amira Foods turned the whole transaction from a humanitarian effort to a full blown commercial transaction. The means that the Government of Ghana has to pay for the market value of the rice a sad situation that would not have arisen had the transaction remain a grant.

Osei-Adjei instructed the Ghana High Commissioner in India to sign the contract on behalf of the government of Ghana.

On arrival of the rice, efforts by the NIB to get import tax exemption from Ministry of Finance (MOF) to clear the rice were turned down owing to the commercial nature of the contract and more so MOF was not involved in the transaction.

After counting the consignment, 2,081 bags of rice were found missing and remaining quantity was in varying states of wholesomeness.

Investigation conducted by the Bureau of National Investigations (BNI) revealed that provisions of the Public Procurement Act were not followed and that the missing 2,081 bags had been diverted for sale elsewhere for huge private profit. The Indian government at the beginning of January 2008, devised a plan to help a few exporters bypass a ban it had imposed on rice exports three months earlier and capitalize on a rising international market prices.

It was felt in the government that since the export ban had made rice dearer in foreign markets, should requests for grain come from poor nations, it would be released on humanitarian grounds.

Twenty-one African nations including Ghana approached the ministry of external affairs of India after the policy was made public.

The Attorney-General's office, which on August 13, 2009 wrote to the Indian Government requesting it to assist in investigating the import of rice by Ghanaian Government Officials, suspects that beyond the 300,000 bags, additional consignments were allocated or granted Ghana but which are suspected to have been diverted.