Court endorses sale of three properties of Ex-CEO of Ventures Capital for GH¢9.9million

The High Court in Accra has endorsed State Prosecutors’ request to sell three properties belonging to the former Chief Executive Officer (CEO) of Ventures Capital Trust Fund (VCTF), Daniel Duku, for GH¢9.9 million.

The order, issued by Justice Lydia Osei Marfo, was based on the State Prosecutors’ motion for a variation of the value price of the property previously ordered by the Court.

Mr. Duku had entered into settlement agreements with the state to pay GH¢20.11 million as restitution for financial loss caused to the state, with some GH¢14 million still outstanding.

However, the properties he offered to the state to defray the balance of GH¢14 million were overvalued according to the Architecture and Engineers Services Limited (AESL), the valuer appointed to assess the property.

Although AESL’s valuation matched the GH¢14 million outstanding, checks in the same vicinity showed other facilities, which were much better, valued lower.

With the state struggling to dispose of the properties, State Prosecutors filed a motion to vary the reserved price previously set by the High Court. However, Counsel for the Respondent opposed the request.

Justice Lydia Osei Marfo, after hearing submissions from both parties, granted the prosecution’s request and endorsed the new valuations as follows:

Plot Number 7 near the Islamic University, Adjiringanor, East Legon to be sold at GH¢3 million instead of GH¢3.6 million.

Plot Number 4 near the Islamic University, Adjiringanor, East Legon to be sold at GH¢2.9 million instead of GH¢3.6 million.

Georgetown Heights apartments, South Suntreso in Kumasi to be sold for GH¢4 million instead of GH¢6.7 million.

The Court specified that all the properties should be sold to the highest bidder or bidders.

AG’s Argument

Ms. Hilda Craig, with support from Winifred Sarpong, both Principal State Attorneys from the Attorney General’s Department, moved the motion for the reserved price to be varied.

Ms. Craig explained that the respondent, Daniel Duku, had initially been charged with various offenses including stealing, defrauding by false pretenses, money laundering, and causing financial loss to the state.

He opted to plead guilty to all charges and chose to make restitution and reparation to the state instead of serving a custodial sentence.

The agreement involved Duku paying GH¢15 million to the state and Ventures Capital Trust Fund, and more than $26,000 to Ventures Capital. While the USD 26,000 and GH¢1 million found in his accounts were paid, GH¢14 million remained outstanding.

As part of the restitution and reparation, Duku offered properties to the state. The AESL valued these properties at GH¢14 million, but the state challenged the valuation, arguing that similar properties in the same vicinity were valued much lower. Despite the state’s objections, the Court ordered that the properties be sold at the AESL valuation.

Failed Attempts

The order to sell the properties was given in 2021, but an interpleader delayed the process for more than a year. The state’s auctioneer attempted to sell the properties multiple times without success, as the valuations set by AESL were deemed too high.

In 2023, the state sought a variation of the reserved price, but a preliminary objection raised by the respondent was upheld by the Court, stating it was functus officio (having fulfilled its function).

The state argued that the variation of the reserved price was a civil matter, not a criminal one, and the Court had jurisdiction to vary the reserve price.

Respondent’s Opposition

Addo Atuah, Counsel for Daniel Duku, opposed the request, arguing that the properties were offered in lieu of the outstanding amount due to actions by EOCO, a state body, which had made it difficult to sell the properties. The state had proposed AESL as the valuer and accepted its valuation of over GH¢14 million.

Counsel argued that the state’s application to vary the price was an abuse of judicial process and that only the Supreme Court could review such criminal matters.

He contended that the properties now belonged to the state and that the respondent should not be involved in their sale.

By Court

Justice Lydia Osei Marfo, after considering the submissions, endorsed the prosecution’s request to vary the terms. She noted that the Court was being called upon to facilitate the state in realizing the value of the properties, which had become state property following a judgment.

The Court ruled that it would make an order to vary the sale prices of the properties to ensure they could be sold, as previous attempts to sell them at the initial reserved prices had failed.

The new valuations were set to facilitate the sale and prevent further devaluation over time.

The properties to be sold at the revised prices are:

Plot Number 7 near the Islamic University, Adjiringanor, East Legon at GH¢3 million.

Plot Number 4 near the Islamic University, Adjiringanor, East Legon at GH¢2.9 million.

Georgetown Heights apartments, South Suntreso, Kumasi at GH¢4 million.

“All properties should be sold to the highest bidder or bidders,” the Court ordered.