EOCO accused of abuse of power in US$17 million gold scandal

The High Court in Adentan on Thursday, March 19, 2026, ordered the unfreezing of bank accounts belonging to Sesi-Edem Company Limited, owned by Gabriel Tanko Kwamigah-Atokple, the Volta Regional representative on the Council of State, while delivering a significant ruling on the limits of the Economic and Organised Crime Office’s (EOCO) investigative powers.

The decision follows a petition filed by JG Resources Ltd, which triggered EOCO’s intervention and led to the freezing of Sesi-Edem’s accounts on November 20 and December 17, 2025. An ex parte order granted on January 30, 2026, subsequently confirmed the freeze.

Delivering the ruling, Justice Richard Apietu held that EOCO had acted outside its statutory mandate and abused its authority by freezing the company’s accounts at Access Bank in Accra.

The judgment brings clarity to a matter that has drawn considerable public attention in recent weeks, particularly following The Herald’s exposé on a US$17 million gold deal that went awry, with a petition filed at the Police CID by one of Ghana’s leading lawyers, Tony Lithur, against some three Ghanaian companies.

The Court found that the dispute between Sesi-Edem and JG Resources arose from a private commercial agreement and did not involve fraud or money laundering. It emphasised that the matter was purely contractual in nature and therefore fell outside EOCO’s statutory remit under Act 804. As a result, the investigation and the freezing of the company’s accounts were declared unlawful and unsustainable.

EOCO, represented by David Gokah on behalf of its Executive Director, Raymond Archer, opposed the application, arguing that the failure to deliver gold or refund monies by November 4, 2025, constituted fraud. The agency further maintained that it had acted within its mandate and within the statutory timeframe in seeking confirmation of the freezing orders.

However, the Court rejected these arguments, noting that performance under the Sale and Purchase Agreement was still ongoing and that the contractual delivery period had not expired, with completion due by June 2026. Justice Apietu held that Sesi-Edem was not in breach of contract and that any dispute over delivery timelines remained a civil matter for the courts to resolve.

The Court further held that EOCO’s administrative directive to freeze the accounts was issued without jurisdiction. It found that the agency failed to secure judicial approval for its initial freezing order of November 20, 2025, within the mandatory 14-day period. Instead, EOCO reissued the order on December 17, 2025, without disclosing the earlier lapse to the Court and subsequently obtained ex parte confirmation, thereby denying Sesi-Edem the opportunity to be heard.

Justice Apietu ruled that the reissued order was invalid and described the prolonged freezing of the company’s accounts as unlawful and an abuse of power.

On the issue of regulatory compliance, the Court held that Sesi-Edem was duly authorised to trade in gold at the time of the transaction. The company had obtained a licence from the Precious Minerals Marketing Company Limited in August 2024, valid until August 2025, and operated under transitional directives issued by the Ghana Gold Board, which allowed existing licence holders to continue trading until June 21, 2025.

As the Sale and Purchase Agreement with JG Resources was executed on June 5, 2025, the Court concluded that Sesi-Edem was lawfully licensed and had not breached any regulatory requirement.

Addressing EOCO’s jurisdiction, the Court ruled that the alleged financial loss concerned a private entity and did not involve the Republic or any state institution, thereby falling outside the agency’s statutory functions under the EOCO Act, 2010 (Act 804).

The court also found no evidence of a predicate offence to support any allegation of money laundering. It stressed that money laundering presupposes an underlying criminal act and that a breach of contract does not amount to defrauding by false pretences under the Criminal Offences Act, 1960 (Act 29).

Citing Article 23 of the 1992 Constitution, Justice Apietu held that EOCO had failed to act fairly and reasonably and had acted ultra vires its statutory mandate. The Court consequently revoked the confirmation order dated January 30, 2026, and directed the immediate unfreezing of Sesi-Edem’s bank accounts. No order as to costs was made.

The ruling underscores the principle that private commercial disputes cannot be pursued through state investigative bodies and affirms that such matters must be resolved through civil litigation.

It also follows separate orders obtained by Sesi-Edem in December 2025 from the Accra High Court to safeguard funds allegedly obtained from Turkish investors through a forged Sale and Purchase Agreement that purportedly misused the company’s name, with JG Resources positioned as a facilitator.

The decision is widely seen as a strong vindication of Sesi-Edem Company Limited and its founder, Gabriel Tanko Kwamigah-Atokple, after weeks of intense public scrutiny.

Legal representation for the applicants was led by Mawunyo Adjaho, with Yaa Boatemaa Ohene-Bonsu of Knightscild Chambers also playing a key role in securing the outcome.

The Herald, had obtained details of the petition submitted to the Police Criminal Investigations Department (CID) by a partner of Tayvest FZCO, the Turkish company which paid more than US$17 million to a Ghanaian company for the purchase of gold, but now claims it has been defrauded, as the quantity of gold supplied is not commensurate with the funds transferred.

The petitioners allege that Papa Yaw Owusu-Ankomah, son of former Attorney-General and Minister of Justice under the Kufuor administration, Papa Owusu-Ankomah, together with two associates, used JG Resources Limited to obtain US$17 million to facilitate a gold transaction but failed to deliver the full quantity agreed upon.

The Turkish company, in its petition submitted on its behalf by Tony Lithur of LithurBrew Law Firm in Accra, stated that a balance of US$6,8 million remains unpaid. It was evident that the Turkish firm and its sister company, Unigold Trading LLC, based in Dubai, did not conduct due diligence on JG Resources Limited before advancing it US$17 million.

JG Resources had no gold concession and was neither an aggregator nor licensed by the Ghana Gold Board. It therefore relied on three other Ghanaian companies, RMB Mining Company Limited, Sesi Edem Limited and Goldline Mining Limited, advancing funds to them to supply gold bars weighing 1,200 kilogrammes for onward delivery to the Turkish firm.

However, only Sesi Edem Limited is said to have substantially fulfilled its obligations, with about 17 kilogrammes remaining valued at GH₵12 million, which it hopes to complete later this year. Sesi Edem, per the agreement, was obligated to honour the deal within 12 months. The other companies have allegedly failed to meet their obligations since last year, prompting the Turkish firm to hold the Ghanaian directors of all four companies accountable for the alleged fraud.

But Sesi-Edem Company Limited has strongly denied any wrongdoing and has initiated legal action to clear its name. It has sued Tayvest FZCO, JG Resources Limited, EOCO, and Access Bank Ghana Limited.

The company, owned and led by Gabriel Tanko Kwamigah-Atokple, the Volta Regional representative on the Council of State, has repeatedly reiterated its innocence in several documents. It had applied for a committal for contempt against JG Resources and its three directors, Papa Yaw Owusu-Ankomah, Maame Akosua Kuranchie, and Kwaku Appiah Yeboah, as one of the means to distance itself from the Turkish firm’s fraud claims.

JG Resources and its three directors are scheduled to appear before Justice Doris Awuah-Dabanka-Bekoe on March 5, 2026, to face allegations of forgery of documents, stamps, and signatures allegedly used to obtain substantial sums while posing as Sesi Edem Limited, a registered gold dealership.

The contempt proceedings originated from Suit No. GJ-CM/OCC/0181/2026, in which Sesi-Edem alleges that JG Resources unlawfully used its corporate name and the signature of its Managing Director without authorization in relation to a Sale and Purchase Agreement with Tayvest FZCO for the purchase of gold dore bars.

Sesi-Edem, in court documents, said it discovered the forged agreement after being alerted by journalist Kay Cudjoe. It subsequently initiated legal proceedings against JG Resources and its three directors, including Mr Owusu-Ankomah, a lawyer and son of Ghana’s immediate past High Commissioner to the United Kingdom.

It remains unclear whether RMB Mining Company Limited and Goldline Mining Limited have taken similar steps to defend themselves.

Company records obtained by The Herald from the Registrar General show that JG Resources Ltd was incorporated on April 7, 2025 and, within two months, had received the full US$17 million from Tayvest FZCO. Investigators consider the timeline suspicious.

Although the petition is in the name of Unigold Trading LLC, information available to The Herald indicated that the US$17 million was paid to JG Resources in the name of Tayvest FZCO. Both companies own the gold.

The petition, dated December 15, 2025, and signed by Mr Lithur, calls on the CID to conduct a full investigation and take the necessary steps, including prosecutions, to ensure the recovery of the funds.

According to the petition, on May 25, 2025, Tayvest FZCO entered into an agreement with RMB Mining Company Limited (the “Seller”) and JG Resources Limited (the “Facilitator”) for the purchase of gold dore bars.

A trial shipment of 50 kilogrammes was agreed upon signing the contract. Under the agreement, the Facilitator was to receive payments and use them to procure gold on behalf of the Turkish buyer.

Following the trial shipment, Tayvest FZCO transferred US$14,315,000 to JG Resources in multiple transactions. Of that amount, US$7,800,000 allegedly related to gold that was not supplied. Upon demand, only US$1,000,000 was refunded, leaving US$6,800,000 outstanding.

The Herald’s information is that the Turkish firm had reported transferring approximately US$17 million to JG Resource Limited in connection with the gold transaction.

The petition further alleges that part of the funds paid into JG Resources’ account was transferred into the personal account of Kwaku Appiah Yeboah, described as an underlying shareholder, without lawful justification and contrary to the purpose for which the funds were provided.

Despite repeated demands, the petition states that neither the outstanding gold nor the remaining funds have been delivered.

In a separate petition dated December 4, 2025, to the CID Director-General, COP Lydia Yaako Donkor, lawyers for Sesi-Edem requested investigations into suspected offences of defrauding by false pretences and forgery under Sections 131 and 159 of the Criminal Offences Act, 1960 (Act 29).

The petition, signed by Mawunyo Kofi Adjaho of Knightscild Chambers, states that Sesi-Edem is a fully licensed and regulated gold trading company operating under licences issued by PMMC, the Government of Ghana, and Goldbod, and that letters from the Bank of Ghana confirm its participation in the Domestic Gold Purchase Programme.

According to Sesi-Edem, on November 30, 2025, a purported Sale and Purchase Agreement dated June 5, 2025 was produced, naming Tayvest FZCO as the buyer and falsely purporting to make Sesi-Edem the seller. The company maintains that the Managing Director’s signature on that document was forged and that no funds were ever received from the Turkish firm in respect of that transaction.

It insists that its only agreement with JG Resources, also dated June 5, 2025, names Unigold Trading LLC and JG Resources Ltd as joint buyers.

Under that agreement, Phase One covers delivery of 50 kilogrammes between June 5, 2025, and June 5, 2026, at the prevailing LBMA spot price less six per cent. Phase Two, contingent on the successful completion of Phase One, is estimated at 1,200 kilogrammes. Phase Two has not commenced.

Sesi-Edem reports receiving GH₵57,759,594.68 in three instalments in June and July 2025 and delivering 32.8 kilogrammes of gold valued at GH ₵45,015,918.90 between June 12 and August 6, 2025.

It maintains that the outstanding balance remains within the contractual delivery window, which runs until June 5, 2026, and that no notice of breach has been issued.

Notwithstanding this, JG Resources petitioned EOCO on November 4, 2025, alleging partial delivery and a refusal to complete performance or to refund the balance. EOCO subsequently froze Sesi-Edem’s account. In an affidavit filed in court, however, EOCO acknowledged that the contractual delivery period had not expired as of the petition’s filing.

On December 19, 2025, the High Court granted interim orders requiring JG Resources Ltd. to preserve funds and disclose.

Separately from the CID investigation into the US$17 million transaction, Sesi-Edem has filed a Human Rights application and an additional application seeking to lift the freeze on its account, in an effort to restrain EOCO’s continued involvement. It also hopes to access its bank account for money to buy the outstanding gold and deliver.