GNPC did not provide advisory services for Valley Farms - Counsel

Accra, June 13, GNA - Professor Emmanuel V.O. Dankwa, Defence Counsel for Tsatsu Tsikata, a former Chief Executive of Ghana National Petroleum Corporation (GNPC), who is standing trial for causing financial loss to the State, has said, the Valley Farms Limited approached Merchant Bank to provide corporate finance advisory services, but not GNPC.

He said the Valley Farms also approached Merchant Bank and the Africa Project Development Facility (APDF), a development agency, which was operating out of Abidjan, now Cote d'Ivoire, to find investors to take up equity in the company.


Prof. Dankwa said it was later that the GNPC got involved. Counsel was referring to evidence of main Prosecution Witnesses (PW) during an address on behalf of his client to close their case, at an Accra Fast Track Court (FTC) on Tuesday.


He told the court that Mr. John W. Wilson, the Managing Director of Valley Farms (PW1), testified about how his company acquired a number of cocoa farms that had been put up for divestiture by the Ghana Cocoa Board.


He contended that it was as a result of searching for investors and financing to enable the company expand the farms and produce for export, that Mr. Wilson approached the Merchant Bank, and not GNPC.


Tsikata is charged with three counts of wilfully causing financial loss of about 2.3 billion cedis to the State through a loan he, on behalf of the GNPC, guaranteed for Valley Farms, a private concern. The accused is also charged with misapplying public property.

The trial judge, Mrs Justice Henrietta Abban, an Appeal Court Judge with additional responsibility as a High Court Judge, has admitted him to a self-recognizance bail after he had pleaded not guilty. The defence team include Major Rowland S. Agbenato (rtd). Ms. Gertrude Aikins, Chief State Attorney and Mr Augustines Obour, Assistant State Attorney represent the State.


Prof. Dankwa reminded the court that Mr. Wilson had said in his evidence: "After establishing our company, we went out to look for adequate financing to ensure normal and extended development of the farms."


"We took a normal path that most companies take by going to a development agency, APDF, which was operating from Abidjan." "They came and surveyed our feasibility study. They liked the project and said they would help."


Counsel argued that, the witness had not by this point mentioned GNPC, adding, "These pieces of evidence from the Managing Director of Valley Farms are of crucial significance in this case."


Prof. Dankwa averred that later evidence from court witnesses from the Merchant Bank, including documents tendered, as well as admissions of Mr. Jude Arthur (PW5) also one of the Directors of Valley Farms under cross examination, will confirm the clear evidence that neither GNPC nor the accused had anything to do with these beginnings of Valley Farms.

According to Counsel, Mr. Wilson went on to indicate how, through APDF, Caisse Centrale, the French development agency, showed interest in the project and, after their studies on the project, expressed a willingness to provide a loan.


He said it was at this stage, that there was the need for a guarantor, and that this led to GNPC's involvement. Prof. Dankwa stated that the guarantee agreement was signed in the office of the accused person in March 1991.


Counsel stated further that in Mr. Wilson's evidence-in-chief he explained that disbursements of the loan were released in what they called 'tranches', piece by piece, and as the money was used and justifiable receipts were made available and same returned to Caisse Centrale.


Prof. Dankwa said the account of Mr. Arthur about how he came to meet Mr. Wilson was full of lies.


He said all the documentary evidence confirmed the testimony of Mr. Wilson, as against that of Mr. Arthur, that it was Merchant Bank who brought GNPC into the whole issue of Valley Farms.

According to him, the accused was also categorical that it was Mr. Arthur who brought up the Valley Farms opportunity to GNPC. He also denied that Tsikata had not sent Mr. Wilson to see Mr. Arthur in 1987, as the latter alleged, or at any other time. Counsel contended: "In any event, the significant contradictions between the testimonies of two Prosecution Witnesses - Mr. Arthur and Mr. Wilson - on such material issues destroy the case for the Prosecution."


Prof. Dankwa said Mr. Arthur himself acknowledged that Mr. Wilson had asked the Merchant Bank for assistance on the project in 1987, but he first tried to give the impression that the agreement had not been reached about the engagement of Merchant Bank. He said Mr. Arthur then claimed that only a limited task of 'verifying some figures' and giving a brief report 'that would best suit both the investors and the lenders' was in the assignment. Counsel stated that cross-examination of Mr. Arthur severely discredited him (Arthur). Instead of truthfully giving an account of all their involvement, Mr. Arthur sought to hide his role and that of the subsidiaries of Merchant Bank and, specifically, Investment Holdings Limited (IHL) with Valley Farms in the 1987 - 1990 period with talk of merely 'verifying some figures.'


Proceedings were adjourned to June 21, for continuation of addresses.