Judgement Debt C'ssioner Blasts Police

Esther Awuah 

THE SOLE Commissioner investigating the frivolous payment of huge judgement debts and compensations to individuals and companies, yesterday, condemned the Ghana Police Service for its negligence, which led to the payment of money to a certain individual.

According to Justice Yaw Apau, it was such laxities on the part of public officers which had forced the state to cough up several cedis as judgement debt to undeserving individuals and organisations.

The Police Service in 2006 auctioned an Opel Cadet taxi with registration number GW 3457 R which had been involved in an accident and parked for several days at the Nsawam Police station in the Eastern Region.

The owner of the said vehicle, one Samuel Adjei, sued the Police Service for unlawfully selling his car for GH¢20, even though the police administration had made several calls on him to tow the car from the station.

Mr. Adjei, who petitioned the Attorney General (AG) over the sale of his car, won the case and was awarded a judgement debt of GH¢4,500 on September 25, 2006.

But according to the Sole Commissioner, the payment of the money could have been avoided, if the Police had presented the real facts of the case to the AG.

Mr. Adjei had clandestinely come to remove the engine and number plate of his wrecked vehicle at the police station, despite being confronted by one General Sergeant Erasmus Yaw Afeyi.

Justice Apau indicated that “the report from the Nsawam Police to the AG at that time was that the man came to remove the engine and number plate of the car, and took them away without the knowledge of the police. There was no indication that one police officer confronted him.

“In fact, if they had informed the AG that a police man caught him, then they would have made a case out of that. You see, it is because of this laxity that the state was made to cough up the GH¢ 4,500.”

Anthony Kokoroko a Legal Officer at the Ghana Police Service, who represented the Inspector General of Police (IGP) at the Judgement Debt hearing, was led in evidence by Dometi Kofi Sorkpor, counsel for the Commission.

Mr. Kokoroko in defence also explained that the vehicle was auctioned in line with the “Police service disposal of property regulations 1971 LI 704, which regulates the manner in which the police should dispose of properties which have come into its custody of which the owner of the property cannot be ascertained.”

He further indicated that in the case of the vehicle in question, it was a total wreck and several calls to the owner to come for the vehicle proved futile.

When asked by counsel for the commission if he was aware that the AG had stated that it could not sustain any credible defence in the case, Mr. Kokoroko said, “Actually I have not come across such comment, but if that was their position I think it was quiet unfortunate.

“In the sense that at least they should have filed a defence and then contest the case to see the outcome.”

But Justice Apau insisted that “if the right information had been forthcoming this money would not have been paid in the first place. It is just like robbery.”

In a related development Mr. Kokoroko had to also explain why one Lance Corporal Baba Bukari, a former police officer, was paid a judgement debt of GH¢12,000 after he was dismissed from the service.

He explained that Baba Bukari who was enlisted in the police service on June 1, 1986, was posted to several stations including the Berekum District Police Headquarters where he was attached to Sekwa Police Station in the Brong Ahafo Region.

He noted that the said officer complained of accommodation problems which he petitioned the IGP over.

“Baba however ceased to report to work stating that until he receives a response from the IGP about his accommodation problems he would not report to work,” Mr. Kokoroko indicated.

On that basis he was charged with “absenting himself from duty without reasonable excuse.”

The charge was appropriately communicated to him and he was given an opportunity to be heard.

But according to Mr. Kokoroko, Baba wrote back stating that he had petitioned the IGP and, therefore, would not attend the trial.

He added that “under the circumstances, Baba was therefore tried in absentia and dismissed. After his dismissal, he went to court claiming that certain procedures as far as the service enquiry into his case was concerned, were not properly followed, and the court granted him his request [and] paid a judgement debt of GH¢12,000.”

He noted that “when the case went to court, the Police service was not present to defend the decision, hence the award of the judgement debt.”

Sitting has been adjourned to July 22, 2013.

Sports Ministry ‘Hot’ Over Ballooned Judgement Debt

By Esther Awuah

Elvis Afriyie Ankrah – Minister for Youth and Sports

A CHIEF Director at the Ministry of Youth and Sports was yesterday queried at the Judgment Debt hearing, over the payment of a debt to a construction company.

It was gathered by the commission that the debt paid to M/SEP Ghana Limited had increased to over 30 times the original amount in barely a decade.

The debt, which was incurred by the Ministry after it contracted M/SEP to rehabilitate a tennis court at the Accra Sports Stadium in the year 2000, was initially GH¢5,053.20 but increased to GH¢177,664.09 in 2010.

Abdulai Yakubu, chief director at the Ministry of Youth and Sports, attributed the development to the Ministry’s inability to raise the GH¢5,053.20 at that time.

 “The Ministry did not have money to settle the contractor at that time,” he emphasised.

He was subpoenaed to appear before the Judgement Debt Commission to assist it establish why the Ministry paid the said amount to the construction company.

Mr Yakubu, who was led in evidence by Dometi Kofi Sorkpor counsel for the Commission, explained that his Ministry on January 7, 2000 awarded the said contract to M/SEP after Ghana was chosen to host the Euro Africa Zone 2 tennis competition.

He noted that “the project which was in the sum of GH¢69,718.08, was pre-financed by the company and completed within six weeks of receiving the contract.

“The contractor was not paid immediately after executing the contract because there was some documentation, which needed to be sorted out. Thus the contractor was paid in three instalments.”

The first instalment, which was paid on October 22, 2001 was GH¢24,339.53. The subsequent amounts, GH¢33,826.29 and GH¢9,486.75, were paid on November 6, 2001 and December 31, 2001 respectively.

Mr Yakubu further stated that a remainder of GH¢5,053.20, was also not immediately paid, prompting M/SEP to serve the Attorney General (AG) with the intention to sue the Ministry for GH¢227,664.09.

The AG and representatives of the Ministry then held three meetings upon which it was “agreed that the company should be paid GH¢177,664.09, an amount the company accepted in 2010 upon negotiation.”

Sole Commissioner Justice Yaw Apau, surprised at the Ministry’s inability to settle the earlier debt, remarked, “So between 2001 and 2010 the Ministry could not get GH¢5,053.20 to pay the contractor? And government had to later cough up GH¢177,664.09. Don’t you find it……I don’t even know how to explain it.”

When asked whether the project was budgeted for, Mr. Yakubu replied in the negative, explaining that “Ghana had the opportunity to host the Africa Zone two tournament so we thought it was a very bright opportunity to advance to the Zone one where we shall also be having certain benefits. Due to the deadline given, the Ministry had to quickly take that opportunity to prepare, so we did not budget for the project.

Once the project was not budgeted for, it was difficult to source funds from the Ministry of Finance and Economic Planning (MOFEP) for payment to be effected, hence the delay.”

In another development, Mr Yakubu upon request from the Commission, provided supporting documents regarding payments that had been made to certain individuals.

He explained that the Controller and Accountant General in 2011 had mistakenly credited the account of the Ministry with GH¢38,119,023.95 and GH¢10,584,295 being payments to Waterville and Alfred Abgesi Woyome respectively.

He said, “We only got to know about it when we were doing our monthly reconciliations, and alerted the Controller and Accountant Genera’s Department who later debited the Ministry’s account immediately.”

Next to appear before the Commission was Major (Rtd) Samuel Mahama Tara, Chief Director of the Ministry of Finance and Economic Planning (MOFEP), who was also subpoenaed to produce supporting documents on compensation payments relating to the following persons: Abdul Muzizz, Davis Kakra Mensah, Davis Panyin Mensah and Philip Agbodoga.

He stated that an amount of GH¢47,230 was released to MOFEP to enable it to pay these persons, out of which an amount of GH¢7,630 was paid to Mr. Agbodoga as compensation, after he was wrongfully accused of robbery.

He noted further that he received a directive from the AG’s department to pay the remaining GH¢39,600 belonging to the other three persons through their counsel Kulendi & Co.

“There was a letter from the AG’s Department authorising the payments that were to be made to the claimants through their legal counsel, Kulendi & Co., which we did. The vouchers were prepared in the name of the beneficiaries as instructed and the payment was duly effected through their legal counsel,” Major Tara emphasised.

Sitting has been adjourned to July 24, 2013.

Missing File At A-G’s Dept

By Esther Awuah 

Alfreda Dankyi (right), with her colleague at the Judgement Debt Hearing 

A SENIOR State Attorney at the Attorney-General’s (A-G’s) Department Alfreda Dankyi, yesterday failed to furnish the Judgement Debt Commission with documents covering the payment of $159,149 to a law firm Messers Dewey and Leboeuf for services it rendered to government in 2008.

Mrs. Dankyi told the Commission headed by Sole Commissioner Justice Yaw Apau that her inability to provide the right documents stemmed from the fact that the main file containing the agreement and payments made to the law firm could not be located.

She emphasised that: “Unfortunately, the Chief State Attorney who was handling the file at the time, is on retirement and she is out of the country at the moment. We are still trying to contact her, and at the same time we are also making further searches at our registry to locate the main file which will give us more information on the matter.”

The Solicitor-General was subpoenaed by the Judgement Debt Commission to produce documents on payments made to Messrs Dewey and LeBoeuf who had rendered legal services to government on maritime boundary issues.

The legal firm was thus paid the sum of $159,149 on March 11, 2010, but documents covering the payment cannot be located by the AG’s Department.

DAILY GUIDE’S checks with the Judgement Debt Commission revealed that the exact maritime boundary issue the law firm dealt with is not known.

Mrs. Dankyi who was representing the Solicitor-General was led in evidence by Dometi Kofi Sorkpor counsel for the Judgement Debt Commission.

She was however able to produce documents on the agreement between the Ministry of Justice and Attorney Generals Department and Messrs Dewey and LeBoeuf.

She also tended 11 invoices from Messrs Dewey and LeBoeuf, and an unsigned letter from the AG’s Department to the Ministry of Finance and Economic Planning (MOFEP) authorizing the payments.

She indicated that “I have instructions from the Solicitor-General to let the Commission know that the letter ordering the payment was not signed and that the Solicitor-General is still trying to retrieve the main file from its registry.”

Justice Apau then asked Mrs. Dankyi to make efforts to locate the other documents and furnish the commission with them.

The Inspector General of Police (IGP) was also expected to appear before the Commission but according to the Sole Commissioner, he (IGP) did not receive the invitation to appear.

The IGP would therefore be summoned to appear on Wednesday, July 24 2013.

The ‘Commission of Enquiry into the payment of Judgement Debt and Akin’ under C.I. 79 to investigate the frivolous and dubious payments of huge monies to undeserving individuals and companies, was appointed by President John Dramani Mahama after public uproar over the payments in what has now come to be termed as Judgement Debts.

Notable among them is the never-ending case of GH¢51.2million parted to the self-styled National Democratic Congress (NDC) financier, Alfred Agbesi Woyome, which many believed was dubious and frivolous.

Ghana Water Boss Fumbles

 • At Judgement Debt Hearing 

By Esther Awuah

Kweku Godwin Dovlo, Acting MD Ghana Water Company Limited

THE ACTING Managing Director of the Ghana Water Company Limited (GWCL), Kweku Godwin Dovlo, yesterday could not produce evidence to the Judgement Debt Commission to justify compensations paid to land owners of Barekese after acquiring their property.

When he appeared before the commission, Mr Dovlo tendered a letter to support his claim that his company had compensated the land owners.

It turned out that the letter was a copy of a correspondence, which the solicitor of the land owners had sent to GWCL to show that payments had been made.

Sole Commissioner, Justice Yaw Apau, after reading out the content of the letter pointed out to the GWCL Managing Director that it was not a proof of receipt of any money paid.

“This is a letter not a receipt. You have not given us any documents which show that the money was paid and was received in three different installments. So what you told us is different from the documentation you have presented to us,” Justice Apau, emphasised.

The Managing Director of GWCL was not able to furnish the commission with the receipts showing that monies had been paid to the solicitor of the claimants.

He, however, pleaded with the Commission to give him some time to look for the receipts, since he only took office about two months ago.

Background

GWCL over four decades ago secured a land at Barekese in the Ashanti Region, for the construction of a dam, to provide potable drinking water for residents in and around Kumasi.

An agreement was reached with the 12 stool lands and 16 communities whose lands were taken, to the effect that various compensations to cover for the land and in some cases crops and structures on the land.

Payments By BoG

Led in evidence by Dometi Kofi Sorkpor, counsel for the Judgement Debt Commission, Leslie Akrong, Assistant Director and Head of Domestic Banking at the Bank of Ghana (BoG), stated that an amount of GH¢4,301,562.89 was agreed as total compensation to be paid to the land owners.

He acknowledged that these payments were made in three installments which were supposed to have been paid through GWCL to the Land Valuation Board (LVB) which subsequently pays the land owners.

He noted that 50 per cent of the said amount, which was GH¢2, 150,781.43 was paid to GWCL on February 15, 2008 as first installment.

However, the subsequent GH¢1,150,781.46 and the final GH¢1,000,000.00 paid on January 6, 2009 and March 24, 2009 respectively were not paid through the LVB as expected, but was paid straight to the solicitor of the claimants by GWCL.

Kwesi Bentsi-Enchill the Chief Valuer from the LVB, who also appeared before the commission, confirmed that his outfit only received confirmation for the first payment which was 50 per cent of the full amount, but was not informed about the last two. 

Sitting has been adjourned till Monday, June 24, 2012.

Latex Foam Justifies Judgement Debt

By Esther Awuah 

Sole Commissioner, Justice Yaw Apau,

Management of Latex Foam have justified an amount of GH¢207,356.62 paid to it as judgment debt after the Ghana @ 50 Planning Committee had failed to settle arrears for supplies the company had made.

The foam manufacturing company was asked by the Ghana @ 50 Planning Committee to supply mattresses which were used to furnish the AU Village apartments, where dignitaries attending the independence golden jubilee celebration were housed on March 6, 2007.

Stephen Ackuaku Acheampong, an accountant with Latex Foam, told the Judgement Debt Commission yesterday that the Ghana @ 50 committee failed to make payments on some of the supplies made, hence the court action which awarded the judgement debt.

Mr. Acheampong, who was led in evidence by Dometi Kofi Sorkpor, counsel for the Judgement Debt Commission, admitted that there was no contract document between his company and the Ghana @ 50 committee, except for a letter requesting Latex Foam to supply the committee with mattresses.

“There was no contract document between the two entities, but a letter requesting us to supply mattresses not later than February 15, 2007, after we had submitted our quotation upon request,” he stated.

He indicated that Latex Foam wrote to the committee that it would not be able to meet the deadline for the supply of the products and requested for an extension, which the committee agreed to without giving a specific date or deadline.

He noted that the first supply was made between February and March 2007, while the final supply was made in July 2007, after the celebration of the anniversary had ended.

Mr. Acheampong explained that the delay was because “the Ghana @ 50 Planning Committee brought in some beds from China and the specification they asked us to manufacture could not fit into the beds so we had to go back and manufacture according to the beds they brought”.

He stated that his company went to court in 2009 after the Ghana @ 50 Planning Committee had failed to pay the full amount of the cost of the product supplied.

A judgement debt of GH¢207,356.62 was then delivered in October 26, 2009.

There was, however, no contest from the Attorney General’s Department which was a representative of government at that time.

The Ministry of Finance and Economic Planning failed to pay the said amount on time. But just when it did, Latex Foam went back to court to request for an interest of GH¢12,000 to be paid to it since the judgement debt was not paid on time; a request the court granted.

The Sole Commissioner, Justice Yaw Apau, was concerned that “there was no competitive bidding for the supply of the products and the fact that all the mattresses were not supplied till after the function”.

The witness tendered documents of invoices and waybills covering the supply of the goods, as well as other relevant documents stating the request for the supply of the products.

Mr. Sorkpor requested the witness to later furnish the Commission with documents on the writ of summons in respect of their claim before the court.

SSNIT Testifies At Judgement Debt Hearing

By Esther Awuah

THE SOCIAL SECURITY and National Insurance Trust (SSNIT) yesterday appeared before the Judgement Debt Commission to testify in a case involving it and the International Tobacco Ghana (ITG) Limited, CUSTOMS Excise and Preventive Service (CEPS) and the Attorney General (AG).

The Commission was appointed by President John Mahama to investigate the payment of huge judgement debts paid to individuals and companies from 1992 to present.

SSNIT appeared before the commission which was hearing a case in which an amount of GH¢4,179,718 was paid as judgement debt in 2009 to ITG Limited.

The cigarette manufacturing company, ITG Limited, formerly Pioneer Tobacco Company Limited, sued CEPS, the AG and SSNIT when its properties, which belonged to the late Benjamin Amponsah Mensah, were confiscated under the erstwhile Provisional National Defence Council, (PNDC) era.

A ruling in its favour on January 21, 2004 directed that a judgement debt of GH¢4,179,718 was paid to it, and in 2009, Betty Mould-Iddrisu, the then AG, ordered the Ministry of Finance to effect the payment of the judgement debt.

However, Peter Hayibor, Head of Legal Services at SSNIT, said his outfit was not aware of the payment of the said amount to the cigarette company.

Mr. Hayibor, who was led in evidence by Dometi Kofi Sorkpor Counsel for the Commission, stated that “when our attention was drawn to that settlement, we indicated our position and requested the AG to be mindful of the rights of the third party which is SSNIT.”

He added that his outfit did not receive any response from the AG, and later heard the judgement debt had been paid to the plantiff.

He told the commission presided over by Justice Yaw Apau that ITG had sued SSNIT and the other parties after his outfit in 1989 bought some properties belonging to ITG when the Customs Division of the Ghana Revenue Authority formerly CEPS put it up for sale.

He said “CEPS issued a distress warrant in respect of properties of ITG for non-payment of excise duties and sales tax on products that ITG had sold.”

SSNIT, according to Mr Hayibor “purchased majority of the immovable items which were seized under the warrant.”

The Head of SSNIT Legal Services noted that after acquiring the assets, ITG in 1990 commenced a number of suits claiming the sale of their properties was unlawful.

Among others, he said ITG claimed damages and recovery of their properties which had been sold.

He said after the ruling was made in favour of ITG, SSNIT filed a counter claim at the High Court in Accra, a case which is still pending.

To facilitate the Commission’s investigations, Mr. Hayibor provided it with documents covering the properties SSNIT bought from CEPS.

Sitting continues on Monday June 10, 2013

CEPS Ignored In Judgement Debt Payment

By Esther Awuah

 THE CUSTOMS Excise and Preventive Service (CEPS) has stated it is unaware of a judgement debt the Attorney General (AG) paid to the International Tobacco Ghana (ITG) Limited about half a decade ago.

An amount of GH¢4,179,718 was paid as judgement debt in 2009 to ITG Limited.

Larry Fiifi Yankson ,the Assistant Commissioner of the Customs Division of the Ghana Revenue Authority formerly of CEPS, made the assertion when he appeared before the Judgement Debt Commission yesterday.

He stated emphatically that even though the then CEPS was party to the case involving ITG Limited, the AG and the Social Security and National Insurance Trust (SSNIT), his outfit was not notified when the plaintiff was paid the said amount.

The cigarette manufacturing company, ITG Limited, sued CEPS, the AG and SSNIT when its properties, which belonged to the late Benjamin Amponsah Mensah, were confiscated during the erstwhile Provisional National Defence Council (PNDC) era.

Certain immovable properties belonging to the company, including its headquarters and two bungalows at Buokrom Estate in the Ashanti Region, were seized and sold by CEPS.

The company then proceeded to court where a ruling in its favour on January 21, 2004 directed that a judgement debt of GH¢4,179,718  should be paid to it.

In 2009 Betty Mould-Iddrisu, the then AG, ordered the Ministry of Finance to effect the payment of the judgement debt.

Led in evidence by Dometi Kofi Sorkpor, counsel for the Judgement Debt Commission, Mr. Yankson said “as far as this case is concerned CEPS was never served with any process on judgement debt payment.”

He explained to the commission, presided over by Justice Yaw Apau, that “when the judge made the ruling in 2004, the judgement was suspended because there was the need to go back and do evaluation and subsequently report to the court for action to be taken”.

The Assistant Commissioner further added that “unfortunately, the judge passed away and from that time to date, any payment which had been made has not been brought to the attention of CEPS.”

He, however, intimated to the commission that the same case was pending in court and that the case was expected to be heard on June 12, 2013.

Representatives from SSNIT, Registrar General’s Department and the AG will also appear before the Commission tomorrow. 

AG Sidelines Land Valuation Board

By Esther Awuah 

Justice Yaw Apau, Sole Commissioner

THE ATTORNEY General’s Department has come under scrutiny for paying an amount of GH¢27 million as judgement debt to one Nana Owusu Akyaw Prempeh II, Worakesehene without proper notification to the Land Valuation Board (LVB).

The payment was made after a Kumasi High Court on August 26, 2008 ruled in favour of Nana Prempeh who had sued the LVB and the State Housing Company (SHC) Limited for not returning a stool land given to the state for the construction of a hospital in 1943, after the project was relocated to a different site.

The land was later handed over to the SHC and part to the Ghana Police Service for the construction of a barracks for its personnel.

The court then ruled that Nana Prempeh be paid GH¢49 million, which was later reviewed and reduced to GH¢27 million by the Attorney General.

Kwesi Bentsi-Enchill the Chief Valuer from the LVB who appeared before the Commission of Enquiry investigating the payment of Judgement Debts yesterday stated that though they (LVB) had officially written to the then Minister of Lands & Forestry not to pay any compensation for the land because it was given for free to the government, the AG paid the stated amount without notifying the Board.

Led in evidence by Dometi Kofi Sorkpor counsel for the commission, the Chief Valuer told the commission presided over by Justice Yaw Apau that “the LVB after receiving a copy of a petition to the presidency, went through the administrative procedures to establish the eligibility of the claim for compensation on that land.

“We investigated on the acquisition process to determine the terms and interest, and in 2007 subsequently communicated to the Minister that the land was given free of cost to government and therefore the board did not find it necessary to put up a valuation on the presumed compensation claim.”

He indicated that the legal suit was instituted based on the board’s letter to the Ministry not to pay the compensation.

Mr. Bentsi-Enchill provided the Commission with further corresponding on the issue.

Kwame Poku Boah, Counsel for the LVB also told the commission that when they got to know of the suit, they filed the necessary processes showing every intention that they wanted to pursue the matter.

He noted that “due to my tight schedule in Accra I handed over the brief and everything to the Kumasi office of the Attorney General’s Department. I did not hear about the matter again until I heard that monies were paid to the plaintiff as compensation.”

Dr. Mark Nii Akwei Ankrah, managing director of SHC, who also appeared before the commission on the same matter, stated that since he assumed office about three years ago he has only sighted a few files on the case, but nothing to do with the payment of the said amount.

“Unfortunately, the file I have does not provide any information on the payment made to Nana Prempeh, so I will not be able to confirm whether we (SHC) are aware of the actual payment,” the MD emphasized. 

The ‘Commission of Enquiry into the payment of Judgement Debt and Akin’ under C.I. 79 was appointed by President John Dramani Mahama to investigate the payment of huge monies to individuals and companies, following a public uproar over payment of judgement debts.

Sitting continues on Tuesday May 28, 2013.

‘We Don’t Know Woyome’

By Esther Awuah

Alfred Agbesi Woyome

THE TWO construction companies involved in the rehabilitation of stadia for the CAN 2008 tournament have denied knowing Alfred Agbesi Woyome as an official of Waterville Holdings Limited. 

The Managing Directors of Consar Limited and Michelletti Company Limited, who appeared before the Commission of Enquiry investigating the payment of Judgement Debts, yesterday stated categorically that they never had any official dealings with the businessman when it came to issues with Waterville.

Mr. Woyome, the self-styled National Democratic Congress (NDC) financier was paid a whopping GH¢51.2million as judgement debt after he alleged government had abrogated a contract with Waterville, a company he claims to represent.

He is currently facing two counts of defrauding by false pretences and causing financial loss to the state.

Consar Limited’s Confession

Stefano Ramella Pezza, the Managing Director of Consar, who was the first to appear before the Commission, stated that he only dealt with Andrea Orlandi MD for Waterville and Ernesto Taricone, who were representatives of Waterville at that time, and only met Mr. Woyome causally.

“I met Mr. Woyome casually once or twice but we (Consar) had nothing to do with him because we had no dealings with him,” he emphasised.

Mr. Pezza, who was led in evidence by Dometi Kofi Sorkpor counsel for the commission which is presided over by Justice Yaw Apau, explained that his company got to know Waterville because Waterville was suppose to have financed the rehabilitation of the Kumasi Stadium but because it could not meet its obligations, government had to contract Consar to finish the project.

He indicated that “Waterville could not provide the funds for the project so government had to step in and take over the whole arrangement because the games were approaching and there was pressure to complete the project.

“So government decided to finance it on its own, and we were asked to compensate Waterville to the tune of $2.7 million for whatever it had started to do, so we can take over. We were, therefore, dealing with the agreement made by government and Waterville, which was to rehabilitate the Kumasi Stadium.”

Mr. Pezza again added that they were not supplied with equipment from Waterville for the project: “I do confirm that we were not supplied with any equipment from Waterville because we have our own equipment which we used in the construction.” 

He promised to furnish the commission with a full documentary report on the issue.

Michelletti’s Accounts

Next to appear before the commission was Jimmy Caspagna, the Managing Director of Michelletti Company Limited, who also told the commission that with regard to  Waterville, his company dealt with Mr. Orlandi but it never came to his notice that Woyome had anything to do with Waterville.

“I met Woyome on a few occasions but I never met him in any official or technical capacity while dealing with Waterville.”

Mr. Caspagna, who was the Technical Director during the rehabilitation project of the Accra and the El-Wak Stadia, explained that the relationship between Michelletti and Waterville came about because his company was nominated as subcontractors to Waterville in the original contract between Waterville and the government of Ghana.

He stated that “when Waterville’s contract was terminated, a new contract between government and Michelletti was enforced so we took over the project from day one till it was commissioned.”

He stated that Michelletti used its own equipment, adding that his company made certified payments of $950,000 to Waterville as cost for starting the project.

In an interview with Daily Guide, Mr. Sorkpor noted that the Commission, with regard to this case, wanted to establish whether Woyome had anything to do with Waterville Holdings Limited

“Woyome had mentioned certain things in respect to Waterville, and all that we wanted to know was whether Woyome had anything to do with Waterville, and they (MDs) made it very clear to us that there was no connection. So when we come to the main Woyome matter, we will deal with such issues,” he emphasised.

Also appearing before the Commission was Bruce Banoeng-Yakubo, the Chief Director of the Ministry of Lands and Natural Resources in relation to a case involving his Ministry, Nana Owusu Akyaw Prempeh II, Worakesehene, the Attorney General, Lands Valuation Board and the State Housing Company (SHC) Limited.

In the said case, Nana Prempeh was awarded a judgement debt of GH¢27 million, a case which was decided at the Kumasi High Court on 26 August 2008.

Nana Prempeh told the Commission on Monday May 20, 2013, that in 1943 his stool gave a land for free to the then government for the construction of a hospital in the Ashanti Region.

However, the hospital was relocated to a different site, and the project was abandoned.

But the state did not return the land to its owners, which they later found out had been handed over to the SHC and part to the Ghana Police Service for the construction of a barracks for its personnel.

Nana Prempeh continued that they then protested till the then Minister of Lands and Forestry during former President Kufour’s tenure directed the Land Valuation Board (LVB)

to pay the necessary compensation but they (LVB)  delayed, so the plaintiff decided to proceed to court to seek redress.

“Fortunately we won the case against the state and I was invited for settlement by the Attorney Generals Department with the earlier stated amount,” Nana Prempeh emphasised. 

But the Chief Director of the Ministry said they were not aware of the payment of the said amount even though they heard a judgement debt was paid to the Chief.

“Even though the Ministry was aware the case went to court, and a judgement debt awarded, as far as our records was concerned, we did not know the exact amount.” 

Irrigation Authority Blames AESL For Judgement Debt

By Esther Awuah 

The Commission of Enquiry investigating the payment of Judgement Debts yesterday heard how a huge sum of money was paid to a private company as judgment debt. 
 Kae Ghana Limited was paid an amount of ¢5, 458,700,000 (GH¢545,870) because the Ghana Irrigation Development Authority (GIDA) had insisted that it was not aware of a contract awarded the private company by Architectural & Engineering Services Limited (AESL) to undertake an irrigation project in the Northern Region.

Justice Yaw Apau, Sole Commissioner 

Led in evidence by Dometi Kofi Sorkpor counsel for the  commission, Patrick Osew-Owusu, director of GIDA representing the Chief Executive Officer of the Authority, told the commission presided over by Justice Yaw Apau that Kae Ghana Limited was given a ¢12million (GH¢1,200) contract in 1984 by AESL to rehabilitate a small-scale irrigation project in the Northern Region.

He noted that the contract had to be terminated by GIDA in 1985 because it was not in the known.

“In 1984, the regional administration and AESL a rival engineering institution was reported to have awarded a contract on one of our projects to Kae Ghana Limited without our knowledge.“We had to terminate the contract because we award our own contracts so AESL cannot award a contract without our knowledge,” Osew-Owusu indicated.

He continued that the Authority was notified about the contract through its Regional Office in the Northern Region, and three months later the contract was suspended and eventually terminated.

He added that in 1991 Kae Ghana Limited subsequently sued the Attorney General and the Ministry of Agriculture, and was awarded an initial judgement debt of ¢41million (GH¢4,100) as cost.

However, the company after realizing that it had not been fairly treated, went back to court and was awarded the ¢5, 458, 70 (GH¢545,870) in 2007.

Justice Apau then asked the witness what he made of the huge amount paid as judgement debt to which Mr. Osew-Owusu said, “I would fault the AESL because they should have been mindful of their mandate and should not have gone ahead to award the contract”.

The Commissioner said there was the need to invite AESL and Kae Ghana Limited for their side of the case.

In a related development, Nana Owusu Akyaw Prempeh II, Worakesehene appeared before the commission to assist with an ongoing investigation into the case involving him and the Attorney General, Minister of Lands & Forestry, Lands Valuation Board and the State Housing Company (SHC) Limited.

The case was decided at the Kumasi High Court on August 26, 2008, in which Nana Prempeh was awarded a judgement debt of GH¢27million.

Nana Prempeh told the Commission that “in 1943 the then government of Ghana prevailed on the state to give a land for a hospital. Unfortunately, the hospital was relocated to a different site, and the project was abandoned”.

He added that the state did not return the land to its owners, which they later found had been handed over to the SHC and part to the Ghana Police Service for the construction of a barracks for its personnel.

He continued that, “We protested against the injustice done to us through various governments, and during former President Kufuor’s tenure, the Minister for Lands and Forestry directed the Land Valuation board that it was injustice done us. Because SHC was collecting ground rent on the land which did not belong to it”.
 The then minister, he indicated, then directed the Lands Valuation Board(LVB) to pay the necessary compensation but they (LVB) was delaying, so the plaintiff decided to proceed to court to seek redress.

“Fortunately we won the case against the state and I was invited for settlement by the Attorney General’s Department with the earlier stated amount,” Nana Prempeh emphasized.  
 The ‘Commission of Enquiry into the payment of Judgement Debt and Akin’ under C.I. 79 was appointed by President John Dramani Mahama to investigate the payment of huge monies to individuals and companies, following a public uproar over payment of judgement debts. 

More Taxes Will Kill Us – MTN CEO

From left: MTN CEO, Michael Ikpoki, Ghana Journalist Association President, Rasford Tetteh and PRINPAG President, Gina Ama Blay interacting after the event

By Esther Awuah 

Despite its contribution to national development, the telecommunications industry remains one of the heavily taxed sectors of the economy.

According to the Chief Executive Officer (CEO) of MTN Ghana, Michael Ikpoki, high cost of operation and pressure from increased taxes and levies are greatly affecting their operations.
He warned that the continuous increase in taxes will put a heavy burden on the operations of the sector.

“If taxes continue to increase, it puts a lot of pressure on us as a business – and that has been a real concern to us,” the CEO emphasized.

He stated that in 2012, the company paid a total tax of about GH¢448 million, explaining that for every GH¢1 that is spent by a customer which comes to MTN as revenue, 31 per cent of that goes to taxes.

He noted that “we have tried to communicate clearly that this industry needs support in terms of putting in place the infrastructure needed to support the growing customer base and provide modern data services. And we hope government would grant our request.”

Mr. Ikpoki was addressing editors and media practitioners from various media houses during the 2013 Editors Forum at the Golden Tulip in Accra yesterday.

He stated that the company’s new vision and mission statements point to enhancing data coverage, which would be aimed at making the lives of the customers brighter and more productive.

He indicated that MTN’s strategic plans for 2013 include “creating a distinct customer experience; driving a sustainable growth; transforming MTN’s operational model aimed at achieving a positive customer experience; innovation and best practices backed with relevant products, and focus on how to create and manage stakeholder value.

He said despite the dynamic nature of industry and the rise in competition, MTN will continue to invest and improve its network quality in order to achieve customer satisfaction.

Used Fridges ‘Reduced To Clear’

By Esther Awuah 

The sale of used refrigerators is no longer lucrative for the dealers. This follows the ban on the importation of used refrigerators, freezers and air conditioners, which took effect from January 1, 2013.

Government, through its enforcement of Legislative Instrument (LI) 1932 (2008), recently banned the importation of old refrigerators.

The used electrical appliances, aside containing harmful gaseous substances, pose health risks to users and consume much electricity.

A visit by CITY & BUSINESS GUIDE to Kaneshie First Light, where a lot of second-hand electrical appliances are displayed for sale, revealed that the once-vibrant business had plummeted.

At 10 am, only few shops were open for business at Kaneshie.

A shop owner, who gave his name as Allotey Junior, told this paper that since the ban took effect business had plummeted.

“We hardly get about 10 people coming to buy from us on a daily basis. Before the ban, we used to serve over 20 customers a day.”

He noted that because they could no longer import used fridges, they have been forced to reduce the prices of the remaining stock in order to get rid of the appliances.

“A table top fridge, which sells at GH¢ 300, is now going for GH¢250 and GH¢200 while the double door which originally sells at GH¢450 is now selling at GH¢400,” Allotey emphasized.

Michael Annan, who shared similar sentiments, added that he would sell other used electronic appliances since the new fridges were expensive.

“The average Ghanaian cannot afford it,” he emphasized.

With government’s commitment of GH¢3 million towards encouraging the purchase of new refrigerators over a three-year pilot rebate and exchange programme, it is hoped that many Ghanaians can afford to buy brand new fridges.

Under the project, consumers, who ‘surrender’ their old refrigerator appliances, will be supported financially to pay part of the cost of a new and efficient one.

Consumers, who opt for higher efficiency refrigerator appliances, will also receive further rebates depending on the level of efficiency of their appliances.

Dr. Alfred Ofosu Ahenkorah, Executive Secretary of the Energy Commission, promoters of the project, noted that the ban would save the nation about $33 million annually.

In an interview with this paper, he emphasized that “it is not our objective to destroy anyone’s business but at the same time the country risks being fined by the international community if we continue to import these harmful appliances.”

He indicated that talks were underway with a leading refrigerator manufacturer, which would set a factory in Ghana.