Kufuor, Mpiani Akoto, Agyeman Manu, Osei Akoto, Kofi Amoah &Others’
If anyone was in doubt what might befall President John Agyekum Kufuor and his front line cabinet members who arranged the illegal award of contract to the Chinese company, Shangai Construction (Group) which led to the state incurring over GH?100 million dept paid recently to aggrieved business operators, President Atta Mills’ has given a radar on where the chips should fall as far as the controversial law of causing financial loss to the state is concerned.
Speaking for the first time since loud mouth Keneddy agyapong blew alarm on payment of Judgment debts to Mr. Alfred Agbesi Woyome, President Mills has indicated that his target is not the beneficiaries of the judgment debt but rather the circumstances leading to incurring the debt.
“Now who made it possible for that beneficiary to be entitled to that amount? So we have to look critically at the issue. When were these debts incurred and who were responsible.” The President stated unequivocally on Friday that, inasmuch as the government is worried about the quantum of money the State has paid as compensation for judgment debts, the public must also know who caused them.
He said his government is also ready to take up the challenge by the Minority NPP in Parliament who have asked the President to institute an independent public inquiry into the case, noting hopefully that persons who might have “Wilfully caused financial loss” to the State would be exposed for the law to take it course. It may be recalled that, the Kufuor led NPP administration prosecuted some leading members of the erstwhile Rawlings led administration on various charges of causing financial loss to the state even when the offences were not so glaring as the issues involved in the CAN2008 Stadia construction and rehabilitation. In the heat of payment of the contentious GH¢58 million to Vamed/Waterville Engineering and Mr. Alfred Woyome as judgment debt, President J.E.A. Mills directed the Economic and Organized Crime Office (EOCO) to investigate the circumstances surrounding the whole issue. The directive also asked the EOCO to find out the total amount of monies paid out as judgment debts since the Mills administration took over the reins of government on 7th January, 2009 and who the beneficiaries are.
But President Mills, speaking in an interview with Radio Gold on a wide range of issues in his office, maintained that, the beneficiaries of judgement debts are not his target.
“I would want to tell the beneficiaries that, I am not out to embarrass them, no, the allegation was made that Mr Woyome was paid because he was NDC. I want the whole of the country to know that, since we came to power, we have paid a lot of judgement debts, and the country must know the size of those debts and who incurred them.
“And the payment, perhaps, as further step, we have to find out who incurred the liability because if the court awarded the judgement or awarded the cost, whatever it is, it’s a way of saying that the beneficiary is entitled to it.
The Breach
Colin Russell, a British International Lawyer based in England, had in notice to the Kufuor administration pertaining to the commitments to which the claims have been made stated that, Waterville and VAMED have both signed protective commitments with the USA Department of Commerce for the utilization of 32.5% of contract value to include purchase goods and services from the USA.
“The Bidding process, which was open and international, was fair and we have all records of the process and reports of committees in our possession.”
Adding that, the procurement bodies are obliged under law and the World Bank's "Procurement of Works and User Guide" to keep all records of the process and make them available to the general public or any competent body of Law.
Explaining the legitimacy of their bid to Kwadjwo Mpiani, Colin Russell stated, thus “We have in our possession the Financial Committee's report, which included officials of the Bank of Ghana and the Ministry of Finance.We quote the committees remark on our funding: "proposal supported with credible documentation and institutions.
The document presented at that time to the Chief of Staff covered the chronology of the process which took 7 months at enormous cost to our clients who not only were obliged to look for Concessional Funding but also to do all Feasibility Studies and detailed designs with specification given to them officially by the L.O.C., he elaborated.
According to Russell, Waterville has authentic evidence on the Chinese Company which the Kufour Government dealt with, revealing how it violates all provision of Fair Trade practices and Ghana's Public Procurement Act 2003 (Act 663)
“Whereas others were to look for Concessional Funding for GOG, the Chinese were going to be paid by the GOG through commercial borrowing” frustrated British lawyer bemoaned adding that whereas other companies did actual feasibility studies and soil test, there is abundant evidence that the Chinese have not even visited any site (venue).”
“Whereas others participated in the bid process, the Chinese did not participate.”
Russell warned the Kufuor administration that, Ghana was under obligation with donor partners to do all major procurement through competitive bidding.
The doccument also threatened to use all the participating Foreign Companies Diplomatic Assistance to bring pressure to resolve the impasse, and also other channels such as the World Bank, WTO and FIFA, which Ghana has signed several protocols with, to abide by the Act (Act 663) and also Fair Trade practices.
Meanwhile, Mr. Alfred Woyome had called on the NDC government to probe the entire cabinet of John Agyekum Kufuor, who sat in the cabinet meeting on 27th July, 2005 to frustrate the legitimate process that had plunged Ghana into debt.
He disclosed how Kufuor and some of his Ministers attempted to assassinate him as part of a master plan to destroy evidence that would lead to their indictment in illegalities.
The Exit Plan
“If on the other hand the recommendations arising out of the tender would be set aside, then we should marshal our forces and make decisions which we can defend nationally and internationally”
The above was a statement dropped in a memo to President Kufuor and his compromised cabinet on 27th July, 2005 by the then Minister of Sports and Education in Akosombo where the President had summoned his men to discuss ways and means to abrogate a contract with Vamed Engineering which had been issued a concurrent approval after winning the stadia construction and rehabilitation bid which has hitherto gone through a seven months procurement procedure.
Oblivion of the possible prosecution for causing financial loss to the state should the NPP lose power, Honourable Osafo-Marfo proposed a ‘Plan B’ when it became obvious to him that, President Kufuor had begin nursing ideas to set the rule of law aside in pursuance of greed and personal vendetta in the award of contracts for stadia renovation, construction and supplies for CAN2008 African Cup tournaments.
According to the cabinet memo in the grips of The Republic Newspaper, when President Kufuor became crazy about his unlawful intention to abrogate the stadia contract with Vamed, Mr. Osafo Marfo warn him and his entire cabinet of the consequences and cautioned them about the eminent breach of the Procurement Act (633) 2003.
This is against the backdrop that the Central Tender Review Board had already given Vamed Engineering a notice of the concurrent approval for the award of the CAN 2008 stadia renovation and construction contract.
Provisions of the section 65 (4) of the Procurement Act requires that “Between the time when the notice is dispatched to the supplier or contractor and the entry into force of the procurement contract, neither the procurement entity nor the supplier or contractor shall take any action that interferes with the entry into force of the procurement contract or with its performance”.
Detailing the cabinet, Mr. Osafo Marfo noted that “following the award of the right to host CAN2008, invitation to tenderers to express interest in the procurement of Goods, Works and Services was published on 6th January, 2005 and the procurement process has been followed in accordance with the Public Procurement Act, 2003, Act 663 for the past seven months”
The then Minister of Education and Sports outlined the chronology of events preceding the awards of the contract and stated that, the funds for the project were to be secured through the bidding firms from the financial institutions who backed the firms.
The Minister reinstated to the Cabinet chaired by His Excellency President Kufuor the major considerations in assessing the financial proposals were, the source of funding; main terms of funding; timeliness in accessing the funds and the concessionality of the financial proposal.
Osafo Marfo recalled that, a committee on Finance, made up of the Deputy Governor of the Bank of Ghana, The Head of the Aid and Debt Management Unit and Legal Department at the Ministry of Finance and Economic Planning, conducted due diligence and considered to the above factors to arrive at the most competent, credible and diligent financial proposals for the funding of the projects.
Against the unhidden agenda by President Kufuor and some of his Ministers to frustrate the contract they have already committed the country to, Mr. Osafo Marfo revealed that, The Shanghai Group did not submit any bid by 7th February, 2005 to be considered by the Evaluation Committee.
According to the Minister who had also served the government as a Finance Minister , “The Shangai Group, contrary to the governments tender conditions expects the government of Ghana to provide direct funding; this he said had been the basis for rejecting other firms who could not attract funding even though these firms could be very competitive.
Mr. Osafo-Marfo told his boss and the entire cabinet that the procurement Act makes it difficult to admit the Shanghai Group, given that several firms who did not meet the financial requirement were not shortlisted, adding that “some of the firms shortlisted have also been declared not wholly responsive because of their financial terms”
He also indicated to the cabinet that the period for design of three months has been verified, given that the firms who have already designed the stadia took at least six months to complete the AS-built drawings on turnkey basis.
Hon. Osafo-Marfo prompted “if we have to use direct government funding, firms who have been evaluated in terms of Stadia design, costs tec for the past seven months to meet the minimum CAF Specifications which include minimum capacity of the stadia 20,000 and 40,000 for group and final matches respectively, may be considered”
“Indeed, other firms have also approached us with various offers which for constraint of time and the process have not been admitted”, added Osafo-Marfo.
Subsequent to his Memo, Hon. OB Amoah also Deputy Minister for Sports and Education wrote to Waterville Holdings (BVI) Limited and authorities of the stadia and El-WaK, after the company had been transferred the rights of contract by Vamed, that the “Ministry has no objection to your moving to the construction sites to commence evacuation and demolition exercises for the rehabilitation and upgrading of the Accra, Kumasi and El-Wak stadia”.
Exposed
Minority in parliament stage a press conference, which is aimed at raising allegations over what the NPP refer as default in payment of a GH?42m judgment debt to Alfred Woyome Agbesi.
Among other things, the minority will seek to continue throwing accusations against the NDC government for allegedly dolling out monies to Alfred Woyome.
Contrary to the assertion by some NPP operatives including the former Chief of staff under the Kufuor administration that they had never had any acquaintance with the NPP, as far as the CAN2008 stadia contracts were concerned, documents cited by The Republic indicates otherwise.
Hon. Kwaku Agyeman-Manu, former deputy Minister of Finance had on May, 2005 written to Exim Bank, Washington, DC, Bank Austria Creditanstalt AG and Raiffeisen Zentral Bank Osterreich AG asking them to assist Alfred Woyome and Vamed Engineering GBbH & Co. KG to conclude the loan deal on the CAN 2008 stadia renovation and construction.
The letter which was copied to all the related ministries reads; “The Ministry is aware of a meeting going to take place between you on one part, Mr. Alfred Woyome and Vamed Engineering GmbH & Co. KG. on the other part, about a concessional loan for the attached projects, proposed by Vamed Engineering”.
“We wish to state thus, VAMED Engineering Gmbh & Co. KG. and Mr. Alfred Woyome should be assisted to conclude the loan deal and a term sheet presented to this Ministry for consideration” the letter continued.
Meanwhile with regard to concerns that Alfred Woyome had no capacity to make any claiy for a consultancy fee on the €1.2 billion Euros credit facility, the Republic has cited a letter written by Waterville to the Attorney General on 20 April 2010 in which Waterville explained the involvement of Mr. Woyome in raising of the credit facility.
“The letter stated that Waterville and Mpowpak worked together with Mr. Woyome when VAMED ENGINEERING transferred their right for the projects in Ghana, as per their letter dated 1st July 2005, to Waterville that replied same day” the letter stated
“Waterville and Mr. Woyome set up offices in Wien-Austria and Washington DC-USA, in addition to the existing office in Italy and Switzerland”
the letter noted that the claim for Mr. Woyome to the Government of Ghan is in respect of financial engineering purposely structured for the CAN 2008 while the Waterville’s claim was in respect of the work done at site and other costs sustained for a total amount of Euro 21, 880,256,59.
According to an insider information, the minority in their bid to divert attention from the issue of causing financial lost to the state are seeking to accuse the NDC government and its officials particularly the former Atorney General Betty Mould – Iddrisu for paying moneys to Mr. Woyome without any due diligence.
The minority sought to impute that, Madam Betty Mould Idrisu, whose meticulousness had rather saved the country over GH100million has acted against the interest of the state.
In a twist of fact to suit their strange claims, the Minority seeks to portray that, the former Attorney General had issued an order for the payment to be made before entry of judgment.
According to a document in the grips of The Republic, the AG scheduled a meeting with Alfred Woyome and his solicitors having realized that, the claim for two percent (2%) of the total value of the project that is to be paid to Mr. Woyome and Austro Invest, was in order, with regard to the breach of agreement by the Government of Ghana.
The AG in view of the fact that, the government did not have a case in the matter between them and Mr. Woyome, had engaged in negotiations to settle the matter in order to avoid more cost.
In pursuit of this, the AG advised the Minister of Finance & Economic Planning, per letters dated 28th and 29th respectively to go ahead and make payment to Mr. Woyome and Astro Invest as their claim is legitimate.
The document revealed that, Mr. Woyome initiated legal action against the Attorney General and the Ministry of Finance and obtained judgment on 24th May 2010, in view of their failure to pay the negotiated amount of GH ?41,811,480.59.
The court had slapped a total judgment debt of GH?105, 565,548,24 inclusive of interest and cost on the state, but AG indicated to Mr. Woyome and his solicitors that, the judgment debt was far in excess and that the Government of Ghana was not in position to pay the judgment debt.
Mrs. Betty Mould- Iddrisu insisted that judgment has been entered by the court and the government was not in the position to pay the amount ordered by the court
She indulged Mr. Woyome and Astro Invest, to accept the amount negotiated earlier.
Following negotiations, the solicitors for Alfred Woyome indicated that they were prepared to accept payment of amount of GH 41, 811, 480.59, based on the two percent (2%) that was originally agreed.
The President Speaks
Let me say that, at the very beginning, I wasn’t going to talk about this case because having referred to EOCO I would regard it to be sub-judice. But I want to say one or two things. When this case first broke, I was in the US and I ordered the two ministries involved, at the Attorney General’s Department and the Finance Ministry, to give me a report, a report which I wanted to be published so that the world would know what happened.
But upon further thought, I thought that the issue is not whether the amount was paid, who paid it.
EOCO may find itself having to go into other areas. First of all, who incurred the liability? Unfortunately, since this case broke, many people have turned themselves into lawyers and I’m yet to hear anyone talk about whether the liability which was incurred was as a result of a wilful causation of financial loss. It is one issue which we will have to look at and other issues; who were responsible?
Now I asked also that a list of judgment debts and the beneficiaries be made available.
I would want to tell the beneficiaries that I am not out to embarrass them – no!. The allegation was made that Mr Woyome was paid because he was NDC. I want the whole of the country to know that since we came to power we’ve paid a lot of judgement debts, and the country must know the size of those debts; who incurred them.
And the payment, perhaps, as further step, we have to find out who incurred the liability because if the court awarded the judgement or awarded the cost, whatever it is, it’s a way of saying that the beneficiary is entitled to it.
Now, who made it possible for that beneficiary to be entitled to that amount? So we may have to look critically at the issue of when were these debts incurred and who were responsible?
But, I believe that at the end of the day those who say they want justice will say that Mr President, let us not stop here. It is important for us to find out whether they wilfully caused financial loss, and I want to assure them I will oblige them and take any further steps.
It is important to find out who caused the loss, who incurred the liability? What did the court say?
Mind you, quality grain involved $20 million, some of the payments that we have made are much much more than $20 million. So we have to look at the list and ask ourselves: how come that money which we could have used for some developmental activities have had to be paid to people who have been wronged?
So once again, I want to emphasise that the beneficiaries are not my target.
The people of Ghana must know how much we have paid and to ask who caused the liability which has resulted in the payment of these judgement debts?
