Contractor Outwits KMA

…Secures GH¢1,382,000 loan facility with forged documents

THE KUMASI Metropolitan Assembly (KMA is bracing itself to contest the

authenticity of a lease agreement supposedly signed between the KMA and

All State Constructions.

This follows the realization by a section of members of the Assembly that the

said lease agreement, purportedly signed between the parties, is not genuine.

TRUTH is informed that the Assembly is contemplating revoking a Memorandum of

Understanding single handedly entered into by the former Chief executive,

Mr. Maxwell Kofi Jumah and All State Construction on September 20, 2003 in

which a public land was leased to one Kingsley Nana Asante for 40 years

because it (MOU) was administered outside the Assembly and the legal framework.

The said lease agreement was signed by Mr. Jumah, and jointly witnessed by

Mr. Albert Anthony Ampong, then Metro Co-ordinating Director and Mr. Charles

Ampomah-Mensah, then City Engineer.

Mr. Kingsley Nana Asante as CEO signed for of All State Constructions while

Martha Obeng, the secretary witnessed for All State.

The peeved assembly members are pushing for the revocation of the agreement

because it is null and void and for the fact that the agreement which bordered

on Build Operate and Transfers (BOT) had not followed due process.

The position of the Assembly is on the strength of the Local Government Act 462

of 1993 and sections of the Standing Orders of the Metropolitan/Municipal and

District Assemblies (MMDA’s).

Section 4 (i) Act 462 which dwells on the incorporation of the Assembly states

that “Each District Assembly shall be a body corporate with perpetual succession

and a common seal and may sue or be sued in its own name”.

The section 64 of the Standing orders provides that “For the purpose of sealing

contracts, bye-laws agreements and other formal documents, the Common Seal,

shall be cast in brass metal in round or oval shape” while the Section 66,

sub-section 2 points to the role of the Presiding member and the Secretary of

the Assembly thus, “The Presiding Member and the Secretary of the Assembly shall

by their signatures, authenticate the affixing of the Common Seal”.

TRUTH has gathered that All State Construction has used the said forged

agreement which came in pursuant of an MOU to secure a loan facility to

the tune ofGH¢1,382,000 using KMA’s facility as collateral.

The Ghana Commercial Bank (GCB) has since January 12, 2009, upon endorsement

by Messrs Laud Baddoo and Patrick Mawusi Morthey, General Manager and

Corporate Manager respectively of GCB, approved a total of GH¢1,382,000.00

for a proposed Shopping Mall project at 31% interest on BOT basis.

KMA is not aware of this arrangement since they are not represented on

the Board of Directors of All Stare Constructions contrary to the MOU which

states that two persons from KMA will serve on it.

The Serious Fraud Office (SFO) in Kumasi has established impropriety in the

re-allocation of a building site which had originally been allocated to the

Ghana Traditional Caterers Association by Jumah to All State Construction for

the construction of shopping mall on Build-Operate and transfer without recourse

to Assembly regulations and tender procedures.

The findings of the SFO indicated that a Memorandum of Understanding dated

September 20, 2003 was signed between the KMA and All State Construction

Limited.

The document was signed by Metro Chief Executive without a name with the

then Metro Co-ordinating Director, Albert Anthony Ampong and Metro

Engineer, Charles Apomah Mensah as Witnesses.

The SFO has therefore recommended that the Ghana Traditional Caterers

Association (GTCA ) recover possession of a building at the Kejetia from

All State Constructions which had forcibly and illegally taken over the

property.

The SFO, upholding that the rule of law should take its course , directed

that the KMA should uphold the decision of a Kumasi High court which

entered judgment on November 22, 2006 in favour of the GTCA.

It said the proper action must be taken to protect the interest of the

State in general and specifically that of KMA.

Even though the KMA Boss, Mr. Samuel Sarpong has endorsed the recommendations of

the SFO and directed that the GTCA recover possession of the building last April

to avoid a charge of contempt, the GTCA is yet to take over the property.

Nana Asante has confided in TRUTH that he has valid documents for holding

onto the land even though he has not been able to produce a copy of the

said documents to the SFO.

Checks at the Metro Development Control Office and Legal department of the KMA,

however, indicated that there is no contract between the KMA and All State

Constructions regarding the said land in dispute.

TRUTH sources said the KMA had facilitated the issue of a building permit

to All State Constructions by the Kumasi Planning Committee (KPC) which act

is said to be wrong technically and legally.