No financial loss to the state

-Prudential Bank MD assures Ghanaians
Posted: The Chronicle | Friday, July 24, 2009


By Charles Takyi-Boadu, Daniel Nonor & Masahudu Ankiilu Kanuteh
The Managing Director of Prudential Bank, Mr. Stephen Sekyere-Abankwa, yesterday denied suggestions that his bank, the Agricultural Development Bank (ADB) and National Investment Bank (NIB) had intentions to cause financial loss to the state.
This was when he appeared before a Commission of Inquiry to answer questions relating to the role of the consortium with regard to the Ghana@50 celebrations, which has been the subject matter of heated controversy between members of the government and opposition parties.

As far as he was concerned, Mr. Abankwa said the three banks, which formed the consortium, were commissioned for the purpose of helping to raise funds for the Ghana@50 celebrations, and nothing more or less.

Beyond that, he said, the consortium did nothing wrong to willfully cause financial loss to the state, as was being suggested.

He, therefore, sort to erase any doubts hanging over the disbursement of funds for the celebrations.

Mr. Abankwa also denied suggestions of his bank, the Prudential Bank, ever paying any amounts of money to either the former Chief Executive of the Secretariat, Dr. Charles Yves Wereko-Brobby, or the former Chief of Staff and Chairman of the Ghana@50 Planning Committee, Mr. Kwadwo Mpiani.

The Managing Director answered questions bordering on the formation of the African

Union Development Consortium Limited (AUDCL), to build 30 presidential mansions at Ridge, La, and the Cantonments Village Project, to provide accommodation for presidents and other dignitaries who attended the AU Summit, the Ghana@50 anniversary, and other conferences such as the UNCTAD.

The AUDCL, which was made up of the Prudential Bank, National Investment Bank and Agricultural Development Bank, was used to acquire a loan from the Social Security and National Insurance Trust (SSNIT) to help the banks complete the houses on schedule.

Narrating the whole process to the commission, Mr. Abankwa, who is also the Director of the AUDCL, said the relationship between the AUDCL and the Ghana@50 Secretariat was a business relationship, which involved the construction of the houses.

On the 30 presidential mansions at Ridge, he indicated that the Africa Union (AU) Summit was to take place on July, 2007 in Accra, and in September 2006, the National Planning Committee of the Ghana@50 Secretariat reached an agreement with the three banks, which formed the consortium, to undertake the construction of the 30 presidential mansions at Ridge, a suburb of Accra, from their own accounts.

This means the banks had to raise their own money to finance the construction of the mansions.

Mr. Abankwa said the agreement was reached for the transaction, contained in letter dated 4th September 2006 from the National Planning Committee of the Secretariat, and signed by the Chief of Staff, Mr. Kwadwo Mpianim, among others.

The letter further directed the banks to provide money for the construction of 30 presidential masons to the government to accommodate the guests.

He added that in order not to miss this golden relationship with the government, they formed the consortium, which was owned by the three banks.

According to him, the National Planning Committee later directed the banks to put the 30 mansions on plots of land belong to the SSNIT, and also took a loan from the same institution.

Before actual construction works of the masons commenced, the Ghana@50 Secretariat submitted drawings for the 30 mansions.

The AUDCL engaged the services of a consortium, known as Constro Consult, to provide construction services, design of site, preparations of bid, bid documents, evaluation of bids and other works.

In all, the MD said seven construction companies were engaged for the construction of the houses at the Ridge site.

He was quick to add that construction of the 30 mansions started some where in January 2007, and was completed in June 2007.

After the AU Summit, he stated that the government withheld the sale of the houses, saying that they would be used for other conferences, such as the UNCTAD.

By a letter from the government, dated 29th August 2007, the consortium was informed that the government was interested in acquiring the houses.

In another letter, the government directed that the 30 houses should be sold, which the AUDCL has now engaged the services of Amalgan Consult to sell off the houses to enable the government pay the banks, contractors and other bills.

He note that the outstanding bills at 30th June was GH¢504636.37.

Touching on the La, Cantonments Village project, which is estimated at GH¢10 million, he said since the consortium could not raise the amount from the banks, therefore the consortium contracted the amount from SSNIT, to provide financing for the project.

Legal battle at Ghana@50 probe

TARZAN DRAWS FIRST BLOOD
… Challenges basis of Commission
Posted: The Chronicle | Friday, July 24, 2009



By Charles Takyi-Boadu & George Kyei Frimpong
Dr. Charles Wereko-Brobbey, deep in thought at yesterday’s sitting
The Chief Executive of the erstwhile Ghana@50 Secretariat, Dr Charles Yves Wereko-Brobby, a.k.a Tarzan, has challenged the setting up of a Commission of Enquiry to investigate alleged irregularities at the Secretariat. Counsel for Dr. Wereko-Brobby, Mr. Akoto Ampaw raised the objection when he and his client appeared before the Commission yesterday.
According to him, the findings of the Commission could not be substituted for the Auditor General’s report, which is currently before Parliament. In a letter written to the Chairman of the Commission, dated July 22, 2009, Mr. Ampaw indicated that the finances of the Ghana@50 celebrations had been audited by the Auditor General in accordance with Articles 187 (2) of the Constitution.

Article 187 (2) states “the public accounts of Ghana and of all public offices, including the courts, the central and local government administrations, of the Universities and public institutions of like nature, of any public corporation or other body or organization established by an Act of Parliament shall be audited and reported on by the Auditor General.”

He was of the conviction that the accounts of the Secretariat falls under the supervision of the Auditor General, adding that Article 187(5) and (6) of the Constitution demands that the AG is to submit its report to Parliament and “Parliament shall debate the report of the AG and appoint where necessary, in public interest, a committee to deal with any matters arising from it, namely the Public Accounts Committee.”

“What is even more pertinent to our client’s concern, Article 187 (7) states in unambiguous terms that - ‘In the performance of his functions under the Constitution or any other law, the Auditor General shall not be subject to the direction or control of any person or authority,” he insisted.

Mr. Ampaw, who re-echoed his sentiments publicly before the Commission, queried the bearing of the Commission’s work on the constitutional mandate of the AG. He argued that their concerns were necessary constitutional matters that border on the fundamental principles of separation of powers, the rule of law and the supremacy of the Constitution.

Mr. Akoto Ampaw again demanded the procedure by which the Commission would carry out its enquiry, adding that Article 281(2) requires the Rules of Court Committee.

He further requested from the Commission a formal notification of any allegations of improper use of public or other funds that the Commission is aware and intends to investigate. “This we believe will enable our client to fully assist the Commission in its work and also provide our client with reasonable opportunities and facilities to protect his integrity,” he emphasized.

Regarding the issue of the existence of AG’s report on the accounts of the Ghana@50 celebrations, the Chairman of the Commission, Justice Isaac Duose, said he would not touch it, since it was before parliament.

Touching on the Rules of Procedure, the Chairman said the Commission would proceed as if it was a court of law, taking into consideration the rules of fair hearing. The three-member Commission has His Lordship; Mr. Justice Isaac Duose of the Court of Appeal as Chairman, with Mr. Osei Tutu Prempeh, Former Auditor-General and Mrs. Marietta Brew Appiah-Opong, a Legal Practitioner, as members. The Commission has Mrs. Barbara Tetteh-Charway and Mrs. Evelyn Keelson as Counsel/Secretaries.

Established by C.I. 61, by President Mills on June 1, 2009, under Article 278 Clause 1(a) of the Constitution, the Commission was inaugurated by His Excellency the Vice President, Mr. John Mahama on June 17th, 2009, and has 90 days within which to submit its report.

It has been tasked to inquire into, and report on allegations of improper use of public and of any other funds, inquire into the use by the Secretariat of any property, movable and unmovable, inquire into any other matter which appears to the Commission to be incidental to, or reasonably related to the Ghana @ 50 celebrations, which in the opinion of the Commission ought to be enquired into and make recommendations in respect of the findings of fact by the Commission