Serious Fraud Office shelves C96.6bn fisheries deal

The Serious Fraud Office (SFO) has for the past four years been investing a Tema-based fishing company?s dealings with the Pioneer Food Cannery (PFC) which resulted in payment of $12.7million to a company in Las Palmas.

Chronicle?s undercover investigation has it that fishing company, Infitco Ghana Ltd, has for the past 15 years been supplying fish, yellow fin and skipjack, to the Pioneer Food Cannery for canned tuna production. It was further established that soda fish, which contains so much blood, is reserved for the local market consumption. Infitco Ghana Ltd has its mother company in Las Palmas with the name of Secopa.

Each time Infitco Gh. Ltd, which is Korean-owned, landed fish to PFC, there was directive for the amount to be paid into the Las Palmas foreign account of Secopa. This continued over the years till the Serious Fraud Office took up investigation into the case suspecting fraud.

Chronicle?s findings are that the Chief Executive Officer of Secopa and Infitco Gh. Ltd, one Mr Kang, has moved down to personally supervise the day-to-day transactions of this company. Sources at the PFC, when reached, confirmed paying monies into the Las Palmas account without going through Bank of Ghana (BOG) procedure of Secopa even though vessels run by Infitco Gh. Ltd supplied them with yellow fin and skip-jack fish.

The Korean company was silent on the allegation. However, investigators at SFO, Accra, admitted enquiring into the claim but could not tell where investigations had reached.

In a related development, SFO in Accra says it has concluded inquisition into fraudulent business undertaken by another Tema-based Chinese Fishing Company, Afrik-shandong Ltd and Zhongha Ltd. Fraud experts at the SFO told this paper that they had submitted their findings in the alleged ?25 billion illegal repatriation done by the Chinese company to the Attorney General for advice.

The advice, the crack fraud experts hinted, will determine whether Afrikshandong Ltd must be prosecuted or not. That investigation, also begun four years ago. A letter of 3 September 1999 signed by then acting executive director, B.A. Sapati, to the managing directors of Afrik-Shandong Ltd and Zhongha Fisheries Ltd temporarily leased six vessels on certain conditions.

The letter, ?Detention vessels belonging to Afrik-Shandong Ltd and Zhongha Fisheries,? said the office had decided to cause the immediate temporary release at the Tema Port of the following vessels, which are owned and operated by Afrik-Shandong Ltd, and Zhonga Fisheries.

The vessels are Zhonglu 701, 702,703,704,705,706 and 708, which releases were subjected to conditions that they would discharge their catch at the Port of Tema and report to the SFO the arrival of any of the vessels if they so do. On the 1 January 1995, two different agreements were entered between Komal Ltd, Obourwe and Company Ltd, and Zhongha Fisheries Ltd for the latter to release the vessels to Komal and Nduman Ltd (another Ghana Company) respectively, for operations in their fishery expeditions.

Zhonga Fisheries, under the agreement was to provide fishing technology consultancy and oceanic fishing management services among others. The agreement further stated that the vessels during the said period of three years be in full possession and at the absolute disposal of these local companies for the purpose of oceanic fishing and in return pay a yearly fee of $183,000 to the Chinese.

Investigations revealed that these have been relegated to the background by the Chinese who are themselves running the vessels. Ironically, the benefit the local partners derived is sometimes between 25 and 30 cartons of fish, with the rest being exported.

Further enquires disclosed that the Chinese give monies to the supposed Ghanaian partners for review of income taxes before discharging fish. The SFO is therefore asked to investigate evasion of income tax and customs duty. Reliable information gathered has it that the Chinese government stood surety to produce the vessels anytime the SFO needed them.