Damning final audit report out

A-G HUNTS GOLDEN GATE MD GM

…Over missing GH¢2.4m

By Charles Takyi-Boadu

Posted: The Chronicle Wednesday, January 21, 2009

Mr. Bennet Aboagye, MD of Golden GateAn audit conducted by accounting firm, Messrs Baffour Awuah and Associates at the instance of the Auditor General, Edward Dua-Agyemang into the records of Golden Gate Company Limited (GGCL), a Tema-based stevedoring company, of which a final report had been issued, has uncovered massive fraud and underhand dealings in the activities and operations of the company.
The report, which covered the period of March to September 2007, indicates that the financial operation of the company, which has been battling to settle its tax liabilities to the state, was fraught with serious irregularities and lapses. This has culminated in the failure of Management of the company, headed by Mr. Bennett Aboagye, its Managing Director to account for a total amount of US$ 1.650,913.00, ∏56, 000.00 and GH¢291, 600.51 respectively.
The equivalent of the amounts involved, at the current exchange rate in the new Ghana cedis, stands at a whooping GH ¢2.437, 618.07.
In the process of the audit, the report noted that it became evidently clear that there were virtually no internal systems in place, stressing that “financial policies, accounting procedures and proper books of account and proper accounting records, among others, required for efficient and effective performance and financial operations and proper keeping of the company were absent.”
Besides, the report noted that the provisions of the Companies Code of 1963 (Act 179) and the GGSL regulations were violated. The auditors noted that the breaches of the GGCL regulations and the Companies Code, as well as the apparent absence of financial policies and accounting procedures manual, as well as failure to keep proper books of account and accounting records, among others strongly suggested that “there were serious deficiencies and absolute lack of transparency in the financial operations of GGSL.”
For the period of April 12, 2007, and October 29, 2007, the company submitted invoices totalling $1,186.63 to Meridian Port Services (MPS). Out of the amount, GGSL received a total amount of $1,186,496.63 leaving a balance of $11,505.78 to be settled by MPS.
It was also detected that the management of GGCL did not issue official receipts for monies received from some companies and other sources such as proceeds from the sale of foreign currencies to companies like Index Link, Ecoplast, Eco-Air limited and others.
The Auditors thus noted that “the practice of not using official receipts to cover monies received from companies and other sources do not only breach the provisions of the Companies Code, but can also lead to manipulation and perpetration of fraudulent acts, including the embezzlement of company’s fund.”
In the course of the investigations, the Auditors uncovered that four officials of the company- Messrs. John Evans Adjei, Robert Bortieh, Lawrence Atale and Allan Ofosuhene collected a total amount of $96,531.00 - covering the period of August 14, 2002, to May 16, 2006.
The amounts involved were, however, not recorded in the company’s incoming cash/cheques register, since the Auditors did not sight any documentary evidence to indicate how the listed collections were accounted for.
Management of the company could also not produce any documentary evidence to account for the total amount of $96,531.00 collected by the four officials.
In the absence of any documentary evidence to confirm that the amounts collected were brought to account, and paid for into the bank account of the GGCL, the Auditors have recommended that the total amount of $96,531.00 should be recovered from the four officials involved.
A total amount of ¢1,381,450,000.00 being part of proceeds from the sale of bidding was also allegedly paid into various bank accounts of GGCL during the period November 25, 2002, to August 2006.
Management could, however, not produce deposit slips and bank statements to confirm that the money was actually paid into the bank accounts of the company.
Similarly, the investigations revealed that for the period September 2002 to December 2007, a total amount of ¢596,346,600.00 was allegedly lodged into the bank accounts of the company. However, Management could not provide the names of the receiving banks and the relevant deposit slips and the bank statements to confirm this.
In this case, the Auditors recommended that “in the absence of documentary evidence to confirm the lodgements, the total amount of ¢596,346,600.00 should be recovered from Mr. R.S.L Engmann, the Commercial and Administrative Manager, who is also the officer in charge of accounts.
Meanwhile, the two individuals who have been implicated in multiple complicity by the audit report, Messrs. Bennett Aboagye and Rudolf Engmann, Managing Director and Administrative Manager respectively, have sought to ridicule the report since according to them, there are a whole lot of ‘holes’ in the report.
In separate interviews with The Chronicle, the two individuals described the report as boogie and bogus. “I’ve been to Mr. Agyemang Dua himself and I’ve told him about the problem, that we had lots of evidence to give, they refused to do it because they had an agenda”, Mr. Aboagye noted.
On his part, Mr. Engmann said the report was not discussed with him, stressing that “I have a whole lot of response to give if they have discussed it with me earlier, you know most of those things would have been resolved”, he noted.
The report emanated from the instructions of the Auditor-General, Edward Dua Agyemang, who was acting on a request by the then Minister of Ports, Habours and Railways, Professor Christopher Ameyaw Akumfi, following a disagreement between the Managing Director of GGCL, Bennett Aboagye and his Deputy, Osei Sarfo-Bonsu, over the finances of the company.

Mills now uses Osu Castle as his home

… To avoid inconveniencing motorists
By Charles Takyi-Boadu

Posted: The Chronicle Tuesday, January 20, 2009.

The President has finally decided to use the seat of government, the Osu Castle, as his temporary place of abode. This is to avoid any inconveniences that his motorcade may be creating on the traffic-prone Spintex road, where he plies day-in-and-out from his private residence at the Regimanuel Estates, to the Castle to conduct government business, since he took office barely two weeks ago.
A statement issued by the Office of the President, and signed by Koku Anyidoho, Head of the Communications Directorate, noted, “His Excellency President John Atta Mills has, since Tuesday, January 13, 2009, moved into the residential facility at the seat of Government.”
For now, the President lives alone at the Castle without the company of his family.
Sources close to the Castle told The Chronicle that he only intends to go to his private residence as and when the need arises, especially on weekends when there is less traffic jam on the Spintex road.
In effect, the President works and lives at the age-old Castle to transact business.
Originally known as the Christianborg Castle, the Osu Castle dates back to the 16th Century, and has changed hands many times.
Sources close to President said for the eight years that he served as President of the Republic, President John Agyekum Kufuor lived in his private residence near the Tetteh Quarshie Interchange, at the Airport residential area, from where he commuted to the Castle on a daily basis.
In the year 2005, there was huge debate over whether or not the Osu Castle should be replaced as the seat of government.
At the time, then President Kufuor argued that his government would not sit at the castle, due to its previous association with slavery, and also because its facilities were inadequate.
Members of the then opposition National Democratic Congress, and their Members of Parliament (MPs), however, argued that the $50 million that a new presidential palace would cost would be better spent elsewhere.
Osu Castle remains the seat of government in Ghana, employing 2,100 workers. The most important functions are carried out in the castle itself, but other buildings are also used.
Many international dignitaries have visited the castle, including U.S. Presidents Richard Nixon and Bill Clinton, and former German Chancellor, Gerhard Schroder.
The Castle began to serve as the seat of government under British colonial rule, and continues to perform that function today.
The present castle is made up of various extensions to the original, and is thus in an unorthodox shape.
It has many facilities for the use of employees, including a clinic, cafe, shopping centre, and post office. It also still accommodates a permanent garrison.
The extensive gardens feature a wide variety of plants, both local and imported, and employ 30 people. They are used for the President's outdoor receptions and parties.
The Osu Castle is not open to the public, and photography of it is restricted. In the year 2007, opposition Members of Parliament (MPs) of the National Democratic Congress (NDC), stormed out of a parliamentary debate on whether to take out a $50m loan to build a new presidential palace.
However, their colleague MPs from the New Patriotic Party (NPP), voted unanimously in favour of taking the loan from India.
They argued that the President should not be based in Osu Castle, where slaves used to be kept.
The old Flagstaff House, used by Ghana's first President as a residence, was thus renovated into a museum, while the grounds on which it stands, has been used to build an ultra modern office complex and residence, for the President and Vice-President of Ghana, as well as their staff.
Though over 95% of work at the site has been completed, it is yet to be occupied, and used by the President and his Vice, for the purposes for which it was built.
The area was first occupied in 1550 by the Portuguese, though in the 17th Century Portuguese influence diminished.
The area came under control of the Swedes in the 1650s, led by the Dutch trader Henry Caerlof. In 1652 he was given permission to build a small fortified lodge by the King of Accra, with whom he had previously done business.
In 1660 control passed to the Netherlands, but was soon lost to Denmark. In 1657 Caerlof again traveled to Africa, this time representing Denmark. He aimed to conquer the forts he had previously established, which he found easy at Osu.
In its early life, the castle was primarily used in the gold and ivory trade, but under Danish control, it increasingly dealt with slaves.
In 1957, when Ghana became independent, with Queen Elizabeth II as Head of State, the fort became Government House, the residence of the Governor-General.
When Ghana became a Republic in 1960, it became the residence of Ghana's first President, Osagyefo Dr. Kwame Nkrumah.

Kosmos promises more oil

By Charles Takyi-Boadu

Posted: The Chronicle Friday, January 16, 2009

If what experts are saying is anything to go by then there are strong indications that Ghana is likely to join the league of the world’s Oil-rich producing Countries. Experts from Kosmos Energy have told President Mills that the latest discovery in its exploration puts Ghana in the world class category.
Chairman and Chief Executive of the company, James Musselman, who led a delegation of the company’s Management to the Osu Castle to congratulate President Mills on his election as President of the Republic expressed optimism that by the second half of year 2010, Ghana would start pouring oil in commercial quantities.
The company also took the opportunity to brief the President on the current state of affairs at the oil fields of Cape Three Point,
where intensive exploration works are still ongoing.
Mr. Musselman assured President Mills and Ghanaians of the preparedness of the company to intensify their search for more oil on the field.
Officials of the company paid glowing tribute to the government and people of Ghana for the way and manner in which they conducted themselves during the recent Presidential and Parliamentary elections, in spite of the heat that characterised the campaign process.
President Mills on his part thanked management and staff of Kosmos Energy for the work done so far.
He advised management to be open in their activities and operations in order to strengthen the confidence reposed in them by the government and people of Ghana, whilst emphasising the need to employ and train local hands on the job, to enable them to acquire and develop the needed skills.
He however, cautioned them against practices that could affect the environment. The President also cautioned that his government would not hesitate to punish Investors who take undue advantage of the people. For that matter, he asked management of the company to endeavour to fulfil their corporate social responsibility by striving to bring development to the area of their operation.
Though the government has promised to support foreign Investors in their business endeavours, President Mills entreated these companies to conduct their activities and operations within the confines of the laws of this country.
The President further entreated the management of Kosmos Energy to procure goods and services from local sources in order to promote business in the Western region.
Somewhere last year, Kosmos Energy announced that the company has made a second significant oil discovery offshore of the Cape Three Points Block.
It is estimated that African countries own 8% of world oil reserves.
An estimated $200bn in revenues will flow into African government treasuries over the next 10 years as new oilfields open up throughout the Gulf of Guinea.
Experts in the industry foresee that oil will bring the largest influx of revenue in the continent’s history, and more than 10 times the amount western donors give each year in aid.
Five countries including Nigeria, Libya, Algeria, Egypt and Angola dominate Africa’s upstream oil production.
Together they account for 85% of the continent’s oil production and are, in order of decreasing output.
Other oil producing countries are Gabon, Congo, Cameroon, Tunisia, Equatorial Guinea, the Democratic Republic of the Congo, and Cote d’Ivoire.
Nigeria is estimated to have 3.62 billion barrels of proven oil reserves as of January 2007. The government plans to expand proven reserves to 40 billion barrels by 2010. Majority of the reserves are found along the Niger delta in southern Nigeria.
Nigeria has a total production capacity of 3 million barrels per day, including 2 million barrels onshore and 1 million offshore. Nigeria is the largest oil producer in Africa, 11th largest producer in the world.
Libya has oil reserves estimated at 39 billion barrels. However, experts say the Arab country has the potential for further oil discovery, with only 25% of potential ‘oil land’ by the oil companies due to sanctions and stringent fiscal terms imposed on foreign oil companies.
In a related development, a delegation of the government of India also called on the President, at the seat of government to congratulate him on his election as President of the Republic.
The delegation, which was led by the country’s External Affairs Minister, Anand Sharma and the Indian High Commissioner to Ghana, Ruchi Ghanashyam assured Ghana of India’s support to Ghana.
They also expressed their willingness to strengthen cooperation with Ghana, tracing ties between the two countries as dating back to the days of the Country’s first Prime Minister, Jawarlal Nehru and Ghana’s Osagyefo Dr. Kwame Nkrumah.