Mpiani Caused Financial Loss Of US$ 1.3million

Regardless Of Joe Ghartey’s Caution

Investigative Desk Report

What goes round, certainly comes round; and that is why regardless of efforts by some appointees of the erstwhile Kufuor administration to escape justice, they will still be made to account for their stewardship.

Acting virtually as the de facto Vice President under the Kufuor-led-NPP regime, Mr. Kwadwo O. Mpiani, Chief of Staff & Minister of Presidential Affairs had ignored legal advice offered him, and as a result, caused to Ghana, a financial loss to the tune of US$1.3million, when he conceitedly abrogated a contract between the Ministry of Food and Agriculture (MOFA) and a company called ISOTOFON S.A. under the second Ghana-Spanish Protocol.

Dated 21 March, 2006, Mr. Kwadwo Okyere Mpiani, then Chief of Staff & Minister of Presidential Affairs under President John Agyekum Kufuor, wrote a letter to the Minister of Food and Agriculture, recommending a company to execute a project under the second Ghana-Spanish Protocol, despite all efforts made by the Minister to get him rescinds his decision.

On behalf of the Minister, Mr. Clement Eledi, his deputy in-charge of crops, on April 4, 2006, wrote to Mr. Kwadwo Mpiani to explain why it is impossible for the Ministry to deal with the company he has recommended.

“I am directed by the Honourable Minister for Food and Agriculture to draw your attention to the fact that, the company recommended for the execution of the project in the Ministry is unknown to the Ministry, and the Ministry has never dealt with that company; and therefore, cannot guarantee that the said company is in a position to execute the projects”.

“Throughout the discussion at the Ministry of Finance and Economic Planning, Honourable Ministers were made to understand that, for an effective and speedy execution of the projects under the protocol, Ministers were to identify suitable Spanish companies with the requisite technical knowledge to execute the projects”.

“The Ministry of Food and Agriculture, after a diligent search, settled on two companies to execute the projects in the Ministry. The two companies were ISOTOFON S.A. MADRID, SPAIN AND RAESA S.A. OF SPAIN. Whilst ISOTOFON S.A. was to install solar powered pumping and irrigation systems in the sum of €5,000,000 (Five Million Euro), RAESA was to supply irrigation equipment to the tune of €3,000,000 (Three Million Euro)”.

“The Ministry per the Honourable Minister, went further to enter into an agreement with ISOTOFON S.A. on the 22nd September, 2005, after advice from the Attorney-General”, indicating that the Ministry has already settled on ISOTOFON S.A. as one of the companies to work with, but Mr. Kwadwo Mpiani insisted that the contract be truncated.

The letter copied to the Ministry of Finance, then warned: “ It is having regard to all that has transpired that, the Honourable Minister for Food and Agriculture would want to draw your attention to the fact that, change of company at this stage could open up the Ministry and indeed the Government to legal action, especially by ISOTOFON”.

However, the Ministry of Finance and Economic Planning on April 13th, 2007, wrote to the then Attorney-General and Minister for Justice, Mr. Joe Ghartey for legal advice.

In reply to, the letter dated June 4th, 2008, Mr. Joe Ghartey warned government:

“We acknowledge receipt of your letter with reference number GH/SP/BLC/2FP/1205, dated 13th April 2007, with its enclosures. We have studied the documents and the contract between the Ministry of Food and Agriculture (MOFA) and ISOFOTON S.A., under the Second Spanish Protocol executed on 22nd September 2005. MOFA abandoned this contract and subsequently signed another contract with INCATEMA INDEMA, another Spanish company in respect of the same project.

ISOFOTON S.A. has notified this office of its intention to sue on the contract. We have studied your letter and the various documents submitted by your Ministry and MOFA and advise as follows:

There is a breach of a binding contract with ISOFOTON S A and which entitles them to:

1. Special Damages

2. General Damages &

3. Interest at the prevailing bank rate from time of breach till the day of payment.

We further advise that any lawsuit arising out of this matter would be detrimental to the Government. In the consequence, substantial financial burden could be imposed on the Government through this breach.

To avoid a lawsuit by ISOFOTON S. A., you are advised to try and reach an amicable settlement with them on the issue”.

Despite these warnings from the Ministry of Food and Agriculture and Attorney-General, Mr. Joe Ghartey, Mr. Kwadwo Mpiani insisted on abrogating the contract the Ministry entered into with ISOFOTON S.A.

ISOFOTON S.A. unhappy with the rather illegal steps taken by the then Chief of Staff & Minister of Presidential Affairs, Mr. Kwadwo Mpiani went ahead to sue the Ghana government.

On the 26th October, 2010, the High Court of Justice, ruled in favour of ISOFOTON against the Government of Ghana.

“UPON READING the Affidavit of ANANE-AGYEI FORSON of House No.3 Opposite Shaaba Warehouse Parakuo Estate, Dome-Accra, filed on the 22nd day of October, 2010 in support of Motion Ex-Parte praying for an Order for Certificate of Judgment/Order for payment against the State to issue:

AND UPON HEARING OWUSU YEBOAH, ESQ, Counsel for and on behalf of the Plaintiff/Judgment/Creditor herein;

IT IS HEREBY ORDERED that a Certificate be issued containing the Orders made in the Judgment of High Court dated 29th September, 2010 to recover from the Defendant/Judgment/Debtor herein the sum of One Million, three Hundred Thousand United States Dollars (US$1,300,000.00) made up as follows – Case No. BC.24/2009 US$850.00 and Case No. BC.23/2009 as total Judgment Debt in full and final settlement and satisfaction of the Plaintiffs claim herein against the Defendant for losses suffered by the Plaintiff and damages for breach of contract.

GIVEN UNDER MY HAND AND THE SEAL OF THE

HIGH COURT OF JUSTICE, ACCRA, THIS

26TH DAY OF OCTOBER, 2010

(SGD) M.W.K.KWARA)

CHIEF RESGISTRAR.

The Editors Note

From the above empirical evidence, it is only justifiable that Mr. Kwadwo Mpiani be charged for causing financial loss to the State; and we expect that the Economic and Organized Crime Office (EOCO) acts swiftly in this matter in order to ensure that Justice is done.

Even, in the face of all these evidences, gargantuan Martin Amidu claims he has no evidence to go to court, what a disgraceful personality.