NDC sympathizer suspects foul play in trials of ex-gov’t appointees

A lawyer and sympathizer of the National Democratic Congress is questioning the choice of judge selected to adjudicate cases involving former government appointees accused of causing financial loss to the state. David Annan believes too many cases have been referred to the same commercial court and to the same judge when other courts and judges are available. In an interview with Joy News’ Dzifa Bampoh, the lawyer said there are six fast track high courts and other commercial courts in the country and wondered why one particular court and judge has been selected consistently to hear cases involving past government officials. He however did not mention the name of the judge nor impugn the appointee authority, even though evidence thereof is not far-fetched. David Annan was responding to allegations of political witch hunting by some NPP sympathizers as four of its high ranking members have been hauled before court to answer charges of stealing and causing financial loss to the state in the case of the Ghana International Airlines. The four are before an Accra Fast Track High Court presided over by Justice Bright Mensah. Mike Ocquaye a lawyer and member of the NPP accused government of hastily hauling its political opponents to the law court without following proper procedures of law. For instance, he said government failed to officially charge and serve writs of summons to the accused persons in the Ghana International Airline saga, but somehow expected them to appear in court based on media reports. And when they failed, the state prosecutor accused them of running away from justice. This he said is unacceptable, adding, if you have not been officially charged, how do you know which court to appear and which charges your lawyers will mount a defence on? he quizzed. But David Annan said the arguments by Ocquaye are completely out of place. He stated that the police had made several efforts to contact the accused persons and to charge them accordingly but were given wrong information about their whereabouts. If anything, the accused persons are guilty of deceit of public officials, he said. He was not happy with the choice of judge selected to sit on the matter and did not fail to register his protest. Story by Nathan Gadugah/Myjoyonline.com

Kufuor shows up in court in GIA trial

Former President John Agyekum Kufuor Former President John Agyekum Kufuor was in court on Wednesday to hear charges against key appointees under his administration. The officials, Dr Richard Anane, a former Road and Transport Minister, Mr Kwadwo Mpiani, a former Chief of Staff, and Dr Anthony Akoto Osei, a former Minister of State at the Ministry of Finance and Economic Planning, are standing trial over the liquidation of the defunct national carrier, Ghana Airways and the incorporation of Ghana International Airlines (GIA). The fourth accused person, Sammy Crabbe, a former Greater Accra Regional Chairman of the New Patriotic Party (NPP), represents the minority shareholders of GIA. This is the first major trial of former government officials who served under the Kufuor administration. Mr Kufuor, clad in a blue-black suit, and several other former officials and sympathizers of the NPP, stormed the Accra Fast Track High Court in solidarity with the four accused persons. Dr Akoto Osei was charged with seven counts, including wilfully causing financial loss to the state, Dr Richard Anane faces three counts, Mr Crabbe faces four counts, whilst Mr Mpiani faces one count. The four were granted GH¢300,000 bail to reappear on the 26th and 27th of April. Three of the accused former officials, Dr Osei, Mr Mpiani and Dr Anane, failed to show up in court on Tuesday when the case was first called because they had not been charged. Although Mr Crabbe was in court, the case was adjourned to today for the other persons facing trial to appear. Meanwhile the judge sitting on the case, Justice Bright Mensah, has warned the lawyers of the accused persons to desist from speaking to the press. He warned he would not take kindly to any act that prejudices the court’s verdict. Subsequently, the lawyers for Dr Anane and the other officials did not speak to the press. However, Mr Kwame Boateng, lawyer for Mr Crabbe, who is said to have withdrawn $1.7 million from government’s account without approval, told Joy News on Tuesday his client is innocent. Story by Fiifi Koomson/Myjoyonline.com/Ghana

"Probe into UK diplomat’s allegations a wild goose chase"

Craig Murray The Editor-in-Chief of the New Crusading Guide Newspaper, Abdul Malik Kweku Baako, is tipping off the government that its probe into allegations of malfeasance in contracts signed between the Volta River Authority and two other international businesses by former deputy British High Commissioner to Ghana, Craig Murray, would end as a wild goose chase. He said he doubts the validity and credibility of Mr Murray’s allegation. The former Deputy British High Commissioner wrote an article on his blog suggesting that the erstwhile New Patriotic Party (NPP) administration entered into contract deals with conmen, and urged the ruling NDC government to abrogate all such contracts. He alleged that a British company called Zakhem International Limited entered into a contract with the NPP government to build the Kpone Power Project for the Volta River Authority (VRA). According to him, VRA bought turbines from the manufacturer, Alsthom for $70 million and then paid the American company Zakhem $80 million upfront to install them and provide ancillary equipment. Currently, the turbines are said to be badly damaged due to neglect. Speaking on Metro TV’s Good Morning Ghana programme Thursday, Mr Baako claimed that the current government is aware of what the $80 million was used for and that the VRA has documents to that effect. He noted that if the government decides to invite Mr Murray to assist in investigating issues it (the government) already has insight into, then the government would be wasting the tax payer’s money. On his part, Deputy Chief of Staff, Alex Segbefia, who was a co-panelist on the programme noted that it would be in the best interest of companies whose names have been mentioned by Mr Murray in his allegations should the government decide to investigate the matter. He said investigations may clear those companies of any wrong doing or otherwise. By: Dorcas Efe Mensah/Myjoyonline.com/Ghana

THE UK & CORRUPTION IN GHANA: CRAIG MURRAY SPEAKS

THE BRITISH THE GOVERNMENT ARE THE BIGGEST HYPOCRITES

British High Commissioner Nick Westcott is not afraid to step in to controversy. Having boldly told us that Vodafone did nothing wrong in their acquisition of Ghana Telecom, he now lectures Ghana that incoming governments must respect contracts entered into by the outgoing government.

Of course, that is true. As a general point, it is a simple statement of the legal position.

But we all know that Dr Westcott did not mean it as a general point. He meant that investigations into contracts including Kosmos and Vodafone must be stopped. Otherwise, he warned, investor confidence would be damaged – a warning that foreigners would take their dollars elsewhere.

But what is the logic of this position? No government may question any contract entered into by a predecessor, no matter how corruptly? That if you are a dreadfully corrupt foreign businessman, who has bribed a minister, you only have to hang on until the government changes, and then you cannot be investigated? Plainly this is a nonsense.

The fact is that, as detailed in a series of articles in the Financial Times of London, there are a whole number of questions about the Kosmos deal which give experienced observers great cause for concern.

One which particularly worries me is how, on the best oilfield in Ghana, Kosmos were able to get a royalty rate of only 5%, when the average on other fields is over 11%. There are suggestions that partners from EO were active on the Ghanaian government side of the negotiation.

There are also credible stories of Kosmos handing EO millions of dollars in cash notes for “marketing and publicity”.

Is Ghana forbidden from investigation because the government has changed? No, and they must not be bullied out of it by the British, Americans, IMF or World Bank. Those will always back wealthy Western companies against a developing African nation.

The Vodafone deal suffered – at the very least – from a lack of transparency and a lack of a level playing field for others – including France Telecom – who wished to compete. The final sales price was definitely too cheap.

I would like to know how Ghana Airways’ invaluable routes were awarded to GIA - a bunch of obscure and inexperienced investors who came only fourth in the official assessment of bids. The result has been the almost total disappearance of Ghana’s whole aviation industry.

I would like to know how industrial development funds were given to a network of companies the ultimate ownership of which traced back to the Minister of Industry.

The British High Commissioner has the problem entirely backwards. It is not that the government is not honouring existing contracts. I am Chairman of several companies, including Atholl Energy. Atholl had a contract with the NPP government which has been honoured by the NDC government, because we carry our our work diligently and honestly.

The problem is that where contracts are not honest, action has not been fast enough or decisive enough to root out corruption.

Two of the worst examples are in the energy sector. Let us look at the case of another British company, Zakhem International Ltd. They are building the Kpone Power Project for VRA. VRA bought the turbines from the manufacturer, Alsthom for US $70 million. They then paid Zakhem US $80 million upfront to install them and provide the ancillary equipment.

After three years, what do Ghanaian taxpayers have to show for their US $150 million? Absolutely nothing. An empty field at Kpone, surrounded by Ghana’s longest concrete wall so the Ghanaian public cannot see that their money has been stolen.

What is happening about it? Nothing, because Zakhem and their Ghanaian partners have stolen enough money to bribe all the officials involved. They are now claiming around town that the new government is also “In their pocket”.

Most of the $80 million has vanished forever, while the $70 million turbines are now badly damaged by disuse.

Or look at Balkan Energy. They claimed to have spent US $100 million on refurbishing the Osagyefo barge, at a time when they had really spent less than US10 million.

Under an astonishingly corrupt contract, Balkan are to lease the barge for $10 million per year, from the government of Ghana, but then charge Ghana over $40 million per year for its use as a “Capacity charge”. They will in addition charge the government of Ghana for the fuel, and make a profit on that too.

It is as if I rented your car from you for 100 Ghana cedis a month, then rented it back to you for 500 Ghana cedis a month plus charging you a premium on all the petrol you use.

Balkan stand to make a total of about $1.5 billion dollars in profit from the people of Ghana from this terrible deal. It is the most corrupt contract I have ever seen. It is astonishing that a country like Ghana would enter into a contract with Balkan, whose owner, Gene E Phillips, has stood trial as a gangster in the United States.

These are not crimes without a victim. Everyone who pays any VAT or other tax in Ghana is putting money into the pockets of these disgraceful conmen. Most of the taxpayers of Ghana are very poor, and the money is being taken by people who are very rich.

That is why I am speaking out. I am not supporting any political party. I am supporting the ordinary people of Ghana.

I first spoke out about corruption in Ghana back in 1999, when I was Deputy High Commissioner there. It caused a sensation in the Ghanaian media at the time. But people do not know that I was nearly sacked by the British government as a result.

The British government did not object at all to my attacking corruption in Ghana. The reason I was nearly sacked was because I said “Sadly some British companies have been involved in this corruption”. I was carpeted by the British government and told I must never mention British companies’ corruption.

At the time I was thinking of the British company International Generics Ltd and their involvement in scams over the La Palm and Coco Palm hotels.

The hypocrisy of the British government in defending corrupt British companies was most famously seen when Tony Blair ordered an end to a prosecution of the arms company BAE over massive bribes they had paid in Saudi Arabia. Blair declared that prosecuting BAE was not “In the national interest”.

Last week BAE again escaped criminal prosecution and were allowed to pay a fine instead, for corruption in Africa including Tanzania.

So Nick Westcott is only continuing a British hypocritical tradition of condemning corruption, unless it is British corruption.

The truth is that sadly there was a major increase in corruption in Ghana especially in 2007 and 2008. That was a major reason why the Ghanaian people voted to change their government. But so far there is little indication that the new government has done much to root out the corruption.

The danger in this is that ordinary people will become disillusioned with the political process.

Ghanaians are not stupid. People know who stole money, and they see them swanning around town in their fancy cars, unashamedly living the highlife. This can corrupt society. Young people can easily draw the conclusion that the way to make money is to be a corrupt politician or a drugs dealer.

The further danger is that, just like in Nigeria, they conclude that all the politicians of all the parties are into the corruption, and that is why everyone gets away with it.

I did not used to think that was true in Ghana, but I really am beginning to wonder, unless we see some effective action soon.

So rather than protecting the corrupt, the British High Commissioner should be offering help and assistance actively to attack corruption. That includes corruption by British companies.

He should also remember that, with oil revenues within touching distance, Ghana will soon have her own investment funds and no longer be so dependent on foreign investors. It is not for the colonial master to kick Ghana. The boot will soon be on the other foot.

By Craig Murray

Craig Murray was formerly a deputy High Commissioner for Britain in Ghana

This article is taken from his blog: http://www.craigmurray.org.uk/

Ghana to lose $1.5 billion over "uninteligent contract"

The former Deputy High Commissioner for Britain is raising alarm over what he says is an “unintelligent contract” entered into by the government of Ghana and an American company, Balkan Energy Company LLC. Mr Gregg Murray alleges that government of Ghana continues to lose a whooping amount of $1.5 billion every year, as a result of the contract. According to him, only an “extremely stupid” person could enter into such an agreement and wondered which official signed on behalf of government. Balkan Energy Company LLC was contracted in 2007 to repair and operate the Osagyefo Badge which is expected to generate 185 megawatts of power, with its dual fired unit which can operate on diesel as well as natural gas. Balkan Energy is also expected to convert the barge into a combined cycle power plant with an incremental capacity of 60MW within 9 months after the effective date of the agreement at a cost of about $100 million. But Mr Murray in an interview with Citi News said the deal was fraudulent and urged the government to abrogate the contract. “They are charging government of Ghana $45 million a year for providing electricity from a plant which already belongs to the government Ghana. It is like you lease your own car to somebody, they are going to lease the Osagyefo barge for $10 million a year.” “…I wish I understood why nothing has been done,” I think the government is very concerned to act legally. “It is hard to say whether the agreement was just negotiated by somebody extremely stupid and incompetent and corrupt.” “Either way this contract must be abrogated or it is going to cost the people of Ghana an amount of $1.5 million,” he sniped. Gregg Murray also mentioned another agreement entered into with Zakheim by the Volta River Authority, of which the former is to provide turbines to the people of Ghana. According to him the agreement stinks of corruption and called on government to take immediate action. Mr Murray also criticized recent statements from the British High Commission which sought to prevent any government investigations into deals entered into with the British companies operating in the country. The current High Commissioner Nicholas Wescott has however denied any wrong doing from the commission. Story by Nathan Gadugah with additional files from Citi FM and Daily Guide