Posted on: www.dailyguideghana.com
By William Yaw Owusu
Monday, June 22, 2015
The National Democratic
Congress (NDC) government has admitted that it indeed asked Destination Inspection Companies
(DICs) to contribute $175 million to the repayment of judgement debt to
Bankswitch, a private IT firm in exchange for contracts.
The Ministry of Trade
and Industry in a statement issued over the weekend immediately DAILY
GUIDE published what looked like the government resorting to blackmail in order to get the Bankswitch debt settled,
admitted that the ministry wrote to five DICs to pay a whopping $35 million
each in exchange for contracts.
It means
that the government will receive $175 million from the five DICs should they be
able to afford the amount to settle GH¢ 197 million.
With
current exchange rate of cedi to dollar at interbank rate as at Friday pegged at
GH¢4.27, the NDC
government will be raking in GH¢841million far in excess of the GH¢ 197
million judgement debt to Bankswitch.
Bankswitch’s contract with Ghana government was abrogated
by the NDC administration under President John Evans Atta Mills with current
President sitting as a Vice President at Cabinet.
The
ministry attacked critics of the move to pay the judgement debt through the
backdoor including the media and politicians describing them as evil.
Nana Akrasi-Sarpong,
acting Director of Communications and Public Affairs who signed the statement claimed
the ministry initiated the move in order to save the country from paying more
than GH¢1 billion.
Transparent Invitation
“MOTI's open and
transparent invitation on official Government of Ghana letterhead to five
destination inspection companies to express interest in pre-paying the GH¢ 197
million was motivated by the national interest in saving the country more than
GHC One billion in overpayments that Bankswitch is seeking from the people of
Ghana,”
“The attention of the
Ministry of Trade and Industry (MOTI) has been drawn to articles and
commentaries in the media especially DAILY GUIDE of Saturday June 20th,
2015 regarding a correspondence the Ministry has exchanged with Destination
Inspection Companies (DICs) on the payment of a judgment debt owed Bankswitch.”
“The imports of such
reports and subsequent commentaries have given the impression that the Ministry
is involved in transactions that may be improper or which may constitute
bribery,” the statement said.
Bankswitch Saga
“The facts are that a
company called Bankswitch has succeeded in receiving a Judgment debt against
the Government and people of Ghana in the amount of approximately GH¢ 197
million. The judgment debt was for the termination by the Prof Mill
administration of a contract awarded under the Kufuor Administration for
services in the trade facilitation arena.”
The statement said “The
Prof. Mills administration was of the conviction that the contract was
improperly awarded and that Bankswitch had not performed the services for which
it was contracted to perform. Bankswitch sued the Government in international
courts and won a judgment debt amounting to approximately GH¢ 197 million. Due
to delays in paying this judgment debt and the accumulating interest, this debt
is rising.”
“As the Government
has been unable to pay this judgment debt this far, Bankswitch has been
negotiating with Government on alternative payment arrangements. Until
recently, Bankswitch sought to have the Government pay the entire judgment debt
over a 5-year period, and in addition for Government to award Bankswitch 0.35%
of the FOB values of all Ghana's imports over five years.”
The statement said
that the supplementary award of 0.35% of FOB imports over 5 years, were it to
be accepted by the government, “would imply a contract to Bankswitch that would
be worth more than GH¢1 billion over
five years.”
“This additional over
payment to Bankswitch of more GH¢ 1 billion would be over and above the full
settlement by the Government of Ghana of the GH¢ 197 million debt, whether paid
in one lump sum or over a number of years,” it said.
“It is this 0.35% of
Ghana's import trade bill that Bankswitch would wish to be awarded that the
Ministry of Trade has invited Destination Inspection Companies interested in
paying off the Bankswich debt to present expressions of interest so as to
prevent the people of Ghana from being billed an extra GH¢1billion for no work
done”.
Political Coloration
The statement said members
of the NPP government who negotiated and signed the Bankswitch contract, some
current NPP MPs, their associates in civil society and friends in the media, “who
wish Ghana harm can distort MOTI's action and pretend it is some kind of bribe
or scandal.”
Evil Plot
The statement said “however,
when it is understood that MOTI is rather trying to help save the people of
Ghana from an evil plot by some businessmen and politicians to rape the
country's Treasury, then right-thinking men and women should sit up.”
“If MOTI were
interested in any scurrilous and scandalous business, it would not do so on government
letterhead and address the same opportunity to five independent and separate
businesses to respond in writing.
Legal Threat
It further said the sector
minister “is consulting his lawyers and is prepared to take swift legal action
against any media house or commentators who wish to toy with and damage the
hard-earned global reputation for hard work, creative problem-solving,
professionalism, competence and integrity of Ekwow Spio-Garbrah.”
“The Ministry is of
the view that, the issue at stake should be discussed, taken into consideration
the payment of judgement debt through no work done. The question is, should we
pay judgement debt in excess of GH₵1billion through no work done by Bandswitch?”
Controversial Letter
The letter was purportedly signed by Minister of Trade and
Industry Ekwow Spio-Garbrah on Wednesday June 3, 2015 and asked the DICs with
the capacity to contribute $35 million each towards repaying the judgement debt
to assist government.
In the
letter, the government said: “To pay this debt, government of Ghana is
informing all destination inspection companies that any of them who can advance
government of Ghana an amount of 35 million dollars would be awarded a contract
of 0.35 per cent of free on board values on all Ghana’s imports for at least a
period of five years to enable that company recover its investments.”
The DICs
were given until midday of June 8, 2015 to respond with an expression of
interest according to Joy FM, an
Accra-based radio station.
Criticisms
Samuel
Atta Akyea, Member of Parliament (MP) for Abuakwa South, was the first to fire
a salvo when he described as “filthy” the deal being entered into by the
government.
He said
the letter to the DICs was “a very veil form of bribery” and said the
government could not seek to solve its problems by inducing companies through
monetary donations in the form of contracts.
“This is
very filthy for you to use your office to induce people to pay monies which
they are not supposed to pay so they have some advantage because of your
promise,” he told Joy FM.
Dr. Mathew Opoku Prempeh, MP for Manhyia South preferred to
demand the immediate resignation or dismissal of Spio-Garbrah.
“Since when did Spio-Garbrah become competent enough to
negotiate behind the back of everybody, a judgement debt settlement? All
judgement debts are paid through the Ministry of Finance, where has Spio-Garbrah,
on whose authority is he seeking to negotiate the payment of judgement debt? Is
he the Minister of Finance?” Opoku Prempeh queried on Citi FM.
Sydney Casely-Hayford, a financial analyst called the move
a clear case of bribery saying “if government wants to buy a new presidential
jet today for which it does not have enough money, is it proper for you to call
on everybody who is involved in the aviation industry and say all of you should
come and give us $10 million, 10 million, 10 million and in exchange for that,
we will give you a contract that says that your aviation rights will be
extended or will be in perpetuity forever. Is that not a bribe?”
IMANI President, Franklin Cudjoe advised the government to
tread cautiously in the strategy it is employing to pay off the Bankswitch debt.
“I will suggest that the Ministry takes a second look and I
don’t know if Spio-Garbrah was making this decision single handedly or it’s the
decision of the entire government because as I know, he wasn’t party to this
contract so I will suggest that they should speak to the Attorney General for
some serious direction…”
He said the letter had “undertones of adversity being
imposed on the decision that ought to be taken. It’s indeed a very sad letter
and I don’t know how the Minister himself feels.”
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