Tsatsu Faces Criminal Interrogation In Houston, USA

Bernard Lamptey, Oslo, Norway. bernlamptey@yahoo.com

Reliable Sources have confirmed that Tsatsu Tsikata was subjected to nine hours of rigorous questions on Friday August 13, 2010 by attorneys representing Modec, the FPSO Contractor for the Jubilee Field. The Japanese contractor invited Mr. Tsikata for questions at its Houston offices located at 14741 Yorktown Plaza Drive even though he told acquaintances that he was traveling to China when he left Ghana on a British Airways flight on August 12. This was part of the IFC/World Bank investigation into the circumstances surrounding the award of the FPSO contract and three alleged payments to Tsikata’s Stratoil totaling $2 million.

Suspicious of the circumstances surrounding Tsikata’s business relationship and the consequent award of the FPSO contract to Modec, The IFC and World Bank has launched an investigation that threatens to adversely impact first oil. The questioning was said to be intense. At one point, attorneys representing Modec demanded that Tsikata produce bank statements to help the Japanese contractor track how he spent the money. If any of the funds found its way to current officials or anyone earning a paycheck from the government, a violation of Foreign Corrupt Practice Act (FCPA) could be established. Not surprisingly, Tsikata was said to have struggled with complying with the demand of his bank statements. But in such matters, the investigators have the latitude to demand those bank statement directly from the financial institutions.

The magnitude of Tsikata’s involvement with Modec, while still advising the President of Ghana on energy matters, is big. From the standpoint of IFC/World Bank, the $2 million payments could represent a serious breach of the FCPA provisions, and from Ghana’s perspective, the conflict of interest is inescapable. Furthermore, it may be finally dawning on Tsikata himself that he alone may be responsible for the possible delay of first oil.

Since Modec’s $2 million payments to Tsatsu’s Stratoil was revealed in the Ghanaian media, the self-appointed Energy Czar of Ghana has been mute on details except to threaten lawsuit against media houses that dare to publish information about shady payments Modec made to him. However, for the sake of transparency, there are a few questions that Tsikata must answer in the interest of full disclosure to the public. After all, as advisor to the President of Ghana on energy matters, he owes it to the Ghanaian public.

Question One: How many companies in the world would sign a consultation agreement with a man being tried for causing financial loss to the state, more so when the business environment is being presided over by the government that is prosecuting him? So Modec wants the contract to build the FPSO for the Jubilee Field. It is July 2008 and NPP is in power. And the Jubilee partners needed the magical consultation services provided by none other than Tsatsu’s Stratoil. Experts believe Tsikata back dated his contract to the famous June 4th, a date that he would not forget. Why else would the first payment not be in June when he supposedly signed the agreement? Why would the payments not start flowing until March 31, 2009, nine months after the so-called consulting services were rendered?

Question Two: Tsatsu registered Stratoil in the British Virgin Islands. For a foreign company to do business at that level in Ghana, it had to have been registered in Ghana at least a year before. It also has to show a three year financial activity. Finally it has to be registered and be awarded a GNPC certificate if its area of business is in the energy sector. There is no branch of Stratoil in Ghana. It is impossible to show a three year financial activity for a company registered only a year and a half ago, and there is no evidence at the business registry of Stratoil having been registered in Ghana at all. So how was Tsatsu able to do business with Stratoil in Ghana while breaking all the business laws and still be paid $2 million?

Question Three: Why is there no record of taxes on the monies Tsikata received on the $750,000 collected on March 31, 2009, on the $750,000 collected on July 24, 2009 (one week after the Plan Of Development was signed), and the $500,000 collected on April 30, 2010 (the very day the FPSO was commissioned in Singapore)? This is supposedly a consultation agreement signed between a Japanese company and Stratoil regarding the award of FPSO to operate in Ghana. Somewhere Ghana’s Internal Revenue Services should be paid. Why is there no record of taxes paid on the $2 million received from Modec? And where is the evidence of Modec’s withholding of 5% from its supposedly legal payments to Stratoil as prescribed by Ghana’s laws?

When our Black Stars were given their reward for their outstanding performance in the just ended World Cup in South Africa, Ghanaians were quick to point out their tax liabilities. So The Black Stars must pay taxes, but Tsikata must not? If the amount of $2 million was not paid under the table, why is it that Mr. Ablor Quarcoo the IRS Commissioner has not noticed it to levy a tax on it? And Mr. Tsikata himself has committed a crime of tax evasion for not disclosing the earnings in order to be taxed.

Question Four: Why is it that Tsatsu Tsikata prefers to deal with companies originating from countries with no stringent laws against corrupt practices by their companies operating abroad such as Modec of Japan, CNOOC of China, Oando of Nigeria, and so on? Could Tsatsu and these companies be the proverbial “birds of the same feathers?”

Question Five: Whilst some hardworking men and women at GNPC were working for the Ghana oil industry, and while the MPs of the Parliamentary Select Committee on Energy were busy safeguarding the interest of Ghana Tsikata was laughing all the way to the bank with questionable payments totaling $2 million. Whilst the NDC foot soldiers were crisscrossing the country in support of the party, Tsatsu was waiting in the wings for the food to be cooked so that he can step in and steal the lion’s share. The foot soldiers are known for dealing with their own when they do not account for their actions. Where are they when one needs them to hold someone accountable?

Investigations or not, with all the uncertainties surrounding Tsatsu Tsikata’s dealings in Ghana’s young oil and gas industry, he owes it first to the President of Ghana since he advises him on energy matters, and also to Ghanaians who toil everyday to make ends meet to fully explain his activities. Then on a larger scope, for the sake of international investor confidence in Ghana, Tsikata’s clear conflict of interest and the associated infringement on FCPA violations that has attracted the interest of World Bank must be explained completely as well. Ghanaians are now fully aware of Tsikata’s nefarious activities and are closely watching for the outcome of the IFC investigations.