The Attorney General has said the charges against the former deputy finance minister, Cassiel Ato Forson, are not politically motivated and also have nothing to do with his stance on the controversial E-Levy in the 2022 Budget Statement.
The charges are:
- willfully causing financial loss to the Republic of Ghana, contrary to Section 179A (3) (a) of the Criminal Offences Act 1960 (Act 29),
- abetment of crime, namely willfully causing financial loss to the state, contrary to Sections 20 )1) and 179 A (3) (a) of the same Criminal Offences Act 1960,
- contravention of the Public Procumbent Act 2003 (Act 663), contrary to Section 92 (2)(b) of the said act, and
- intentionally misapplying public property, contrary to Section 1 (2) of the Public Property Protection Act 1977 (SMCD 140).
Reacting to the charges on 24 December 2021, Ato Forson said that his prosecution for willfully causing financial loss to the state was initiated because he started raising concerns about the government’s 2022 Budget and Economic Policy.
However, in a four-page rebuttal, the Office of the Attorney General said that is not the case because investigations into the issue started back in 2017.
The Deputy Attorney General and Minister for Justice, Diana Asonaba Dapaah, said the press conference by Ato Forson was “laden with factual misrepresentations and calculated at scandalizing the criminal proceedings pending in the High Court against the Member of Parliament and exposing the Attorney-General to prejudice and hatred.”
“The investigations into the financial crimes perpetrated against the Republic of Ghana in the matter of the failed purchase of ambulances for the State began in 2017.
“Same had been ongoing since 2017 with a number of statements taken from various persons at different times” including Speaker of Parliament, Alban Bagbin, Kwaku Agyeman-Mensah, Madam Sherry Ayittey and Dr Alex Segbefia, all former Health Ministers,” the statement said.
Below is the full statement:
AG’s Response to Cassiel Ato Forson’s Press Conference by KM on Scribd
Facts of the case
In the year 2009, the then president of the Republic of Ghana announced, in his annual message on the State of the Nation delivered to Parliament, that new ambulances would be procured to expand the existing fleet to enable many districts to be covered by the National Ambulance Service (NAS).
Following this speech, the Ministry of Health (MoH) initiated actions to acquire more of the vehicles.
The third accused, using his company Jakpa at Business, presented a proposal and term loan to MoH which he claimed to have arranged through Stanbic Bank to finance the supply of 200 ambulances to the government.
On 22 December 2011, cabinet endorsed an executive approval that had been granted for a joint memorandum submitted by the health minister and the deputy minister of finance and economic planning for the purchase of 200 ambulances for the NAS, out of a medium-term loan facility of €15.8 million, to be paid using a credit arrangement between Stanbic Bank Ghana Ltd and the Government of Ghana through the Ministry of Finance.
By a joint memorandum dated 30 April 2012, the then minister of finance, Dr Kwabena Duffuor, and minister of health, Alban S K Bagbin, applied for parliamentary approval for the supply of 200 ambulances at a price of €15.8 million, to be paid using the planned-for credit arrangement involving Stanbic Bank Ghana Ltd.
This memorandum to Parliament did not make reference to any role to be played in the transaction by either Big Sea General Trading Ltd (Big Sea), based in Dubai, United Arab Emirates, or the agents for Big Sea, Jakpa at Business Ltd. Nor did it refer to the terms under which the ambulances would be procured or terms under which the two companies would be involved in the transaction.
On 1 November 2012, Parliament granted approval for the financing agreement between the Government of Ghana and Stanbic Bank Ghana Ltd to procure the ambulances.
By a letter dated 19 November 2012, the second accused, who was then the chief director at the Ministry of Health, requested approval from the Public Procurement Authority (PPA) to engage Big Sea through a process of single-sourcing to supply the 200 ambulances.
The letter falsely stated that the reason for single-sourcing was that Big Sea had arranged funding for the project.
By an agreement dated 19 December 2012, the Government of Ghana, represented by the Ministry of Health, then formally contracted Big Sea General Trading llc, based in Dubai, to supply 200 Mercedes Benz ambulances.
The contract sum was €15,800,000, at a unit price of €79,000.
According to the terms of the contract, the contract was to become effective upon the signature of the contract by both parties and when all government and other approvals had been obtained by both.
The terms of delivery, according to the agreement, were that the first consignment of 25 vehicles should be delivered within 120 days of execution of the agreement. The outstanding 175 vehicles were to be delivered in batches of 25 every 30 days thereafter.
Under the agreement, advance payment was prohibited. In addition, payment for the purchase price of €l5.8 million was to be by “raising an irrevocable and transferable letter of credit” from the Government of Ghana’s bankers for the benefit of the supplier.
Upon delivery of every 50 ambulances, 25% of the purchase price was to be paid through confirmed letters of credit (LCs) on sight of goods opened in favour of the supplier, upon submission of a number of documents specified in the agreement.
On 7 August 2014, the first accused person, Cassiel A Forson, wrote to the Bank of Ghana “urgently requesting … to establish the letters of credit for the supply of 50 ambulances amounting to €3,950,000, representing 25% of the contract sum, while arrangements are being made to perfect and sign the loan agreement … in favour of Big Sea”.
On 12 August 2014, the first accused wrote to the controller and accountant general authorising the release of a sum of GHC806,688.75 to the minister of health to enable him to pay the bank charges covering the establishment of LCs for the supply of 50 Mercedes Benz ambulances and related services.
He further directed that the LCs should be charged to the budget of the Ministry of Health, contrary to Parliament’s approval on the funding for the supply of the ambulances.
The controller and accountant general, on the authority of the letters dated 7 and 12 August 2014, written by the first accused, wrote to the Bank of Ghana on 14 August 2014, authorising it to establish irrevocable, transferable LCs in the sum of €3.95 million in favour of Big Sea.
A consignment of ten ambulances, which was shipped from Dubai on 22 October 2014, arrived on 16 December 2014. Post-delivery inspection of the first batch of ten ambulances revealed that they had no medical equipment. Other fundamental defects included defects to the body of the vehicles and the patient compartment of the ambulances.
These defects were brought to the attention of Big Sea in a letter dated 11 February 2015, written by the second accused, Sylvester Anemana.
By a reply dated 19 February 2015, Big Sea acknowledged the defects to the vehicles but said that they proceeded to ship the vehicles when they received the LCs on 18 August 2014. The company also said that the second consignment of ten vehicles, with the same defects, had been shipped 51 days before the date of the letter from the ministry.
The company promised to send its technicians to fix all problems relating to the defects and train Ghanaian staff before handing over the ambulances.
The third batch of ten vehicles was shipped on 12 February 2015. By this time, the second batch had already arrived at Tema Port. All 30 ambulances bore the fundamental defects described.
A further inspection by Silver Star Auto Ltd at the request of the Ministry of Health showed that the vehicles were not originally built as ambulances, and were therefore not fit to be converted for such a purpose. In total, €2.37 million was paid for the 30 vehicles.
The third accused, as the local representative of Big Sea, knowing that the company had not shipped ambulances, still arranged with his principal to supply the purported ambulances and contracted with Big Sea to charge a commission of 28.5% on the proceeds from supplying these 30 vehicles, purported to be ambulances, to the Government of Ghana.
By a letter dated 20 January 2016, the then minister of health, Alex Segbefia, informed Big Sea that the vehicles did not meet the specifications for an ambulance and were not fit for purpose. The minister requested inspection of a well-equipped ambulance vehicle that would meet specifications by 20 February 2016.
Following this, a team led by the chief executive officer of the National Ambulance Service proceeded to Dubai and carried out an inspection on 11 February 2016. After the visit to Dubai, Big Sea undertook to send a technical team to Ghana to rectify the defects. This has not been done.
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