KWABENA AGYEPONG DRAGS JOY FM TO NMC

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Wednesday, December 23, 2015

Lawyers for suspended New Patriotic Party (NPP) General Secretary Kwabena Agyei Agyepong have petitioned the National Media Commission (NMC) over what they call unethical conduct allegedly exhibited by Joy FM – an Accra-based radio station - and its online platform myjoyonline.com.

These media organizations, owned and operated by Multimedia Group Limited, are accused of “putting out palpable lies and concocted stories” about events in the NPP, especially those concerning the embattled General Secretary, including his infamous ‘fufu eating’ saga in Kumasi.

“There has been consistent unethical and unprofessional reportage by Joy FM and myjoyonline relating to issues concerning Mr. Kwabena Agyei Agyepong since he became the General Secretary of the New Patriotic Party,” Korsah & Associates, representing Mr. Agyepong, said in the petition.

“The unfortunate and a perfectly calculated ploy to dent Mr. Agyepong’s image has seen significant escalation recently,” they complained adding, “Mr. Agyepong has personally and through his aides complained to the producers and reporters of the respective media outlets under the management of Multimedia Broadcasting Group Ltd about the numerous false stories concerning his person, but all his complaints have fallen on deaf ears,” the lawyers averred.

Instances

According to the petitioner, on 26th May, 2015, “myjoyonline, without reference to the office of the General Secretary of the NPP, published a fake resignation letter attributed to Mr. Agyepong. Despite repeated denials the media house has kept the false story on their website.”

Fufu In Kumasi

“Both Joy Fm and myjoyonline had earlier in the month unethically recorded and published a story arising out of an off-record conversation with Mr. Evans Mensah, a reporter who had called Mr. Agyepong to arrange an interview. The story sought to portray Mr. Agyepong as an irresponsible, disrespectful and cheeky person,” according to the petitioner.

He said, “Both Joy Fm and myjoyonline used extracts from this private conversation to create a story by quoting Mr. Agyepong as follows ‘Tell them, I am eating fufu in Kumasi. I don’t know anything about this meeting,’ in a story with the headline ‘I had no knowledge of Steering Committee meeting – Kwabena Agyepong.’”

Afoko Still Chairman

The petitioner further said that on 28th October, 2015, “Both Joy Fm and Myjoyonline once again after an interview with Davis Opoku Ansah, aide to Mr. Agyepong, deliberately and disingenuously crafted a story with the headline, ‘Paul Afoko is still NPP National Chairman – Kwabena Agyepong,’ quoting Mr. Agyepong and using his picture which became the main grounds for the petition against Mr. Agyepong.”

The petitioner said that on 3rd December, 2015, a news article published on myjoyonline under the headline, "Kwabena Agyapong faces possible suspension,” stated among other things, that he had to ‘recoil’ and ‘apologise’ following the petition for his suspension and said “no such thing happened.”

Hajia Fati

Furthermore, on 10th December, 2015 under the headline, "Hajia Fati 'sweeps away' Kwabena Agyepong, Sammy Crabbe after suspensions," he said myjoyonline and Joy Fm “blatantly peddled falsehood that he had resorted to begging for mercy.

“This also never transpired during the encounter between Mr. Agyepong and the National Disciplinary Committee as evidenced by the report submitted to the National Executive Committee,” the petition stated.

Wife’s Scholarship

The petitioner said the committee’s report never stated anywhere that his wife, Mrs. Lawrencia Agyepong’s scholarship was provided by the NDC government yet, the Multimedia networks “continue to hold on to this malicious allegation in order to tarnish Mr. Agyepong’s reputation.”

Audio Tape

“We wish to state emphatically that the only audio tapes that were played are the off-record conversation with Mr. Evans Mensah, a reporter of Joy Fm who unethically recorded the conversation and used same as the basis for the infamous Fufu story and the interview on Okay Fm with regards to that same story. For the avoidance of doubt, we wish to state that there was no discussion on the flagbearer of NPP on these tapes and at no point did Mr. Agyepong admit to any derogatory or disparaging comment about the flagbearer for which Mr. Agyepong apologized as the fictitious report published by myjoyonline sought to portray.”

NO SECRET BANK ACCOUNT IN NPP

Posted on: www.dailyguideghana.com

By Yaw Owusu

Monday, December 21, 2015

A five-member committee set up by the New Patriotic Party (NPP) has said no executive member of the party operated a secret bank account as earlier claimed.

The committee also discovered that there was no truth in the allegation of disbursement of £100,000 from any NPP account to the party’s 2016 flagbearer, Nana Addo Dankwa Akufo-Addo.

A statement issued in Accra and signed by NPP Communications Director, Nana Akomea, last Friday said the committee that investigated the issues included Nana Ohene Ntow, a former General Secretary; Joe Osei Wusu; Anthony Akoto Osei; Kwaku Agyeman Manu and Prof. Gyan Baffour -  who are all Members of Parliament (MPs).

The statement said the committee had been tasked by the party on August 25, 2015 to ascertain the bank accounts into which party funds had allegedly been lodged; determine disbursements made out of the accounts and the purpose for those disbursements; establish the approvals for those disbursements and investigate other related matters.

“The committee, over a period of fifteen (15) sitting days, interviewed thirteen (13) witnesses. They included Nana Akufo-Addo, 2016 flagbearer; Paul Afoko, suspended National Chairman; Freddie Blay, then 1^st National First Vice Chairman; Sammy Crabbe, then National 2^nd Vice Chairman; Kwabena Agyepong, then General Secretary; Kwabena Abankwah Yeboah, National Treasurer and John Boadu, National  Organiser.”

The rest included “Hon Daniel Botwe, Minority Chief Whip; Fred Oware, immediate past 1st National Vice  Chairman; Esther Ofori, immediate past National  Treasurer; Gifty Ama Ayeh, past Treasurer; Dr K.K. Sarpong, a representative of the NPP Finance Committee and Baah Achamfuor, a member of the party.”

According to the statement, the committee found out that “there was no setting up and operation of a secret account. The account in question at the Ecobank Trust Towers branch was not a secret account but a party account, albeit dormant.”

It said further that “The reactivation of the account was, however, done without all the necessary consultations and information at the National Executive level,” adding, “The committee found that disbursements made from the Ecobank account were done pursuant to the budget drawn up and approved for the by-election in Talensi.”

It indicated, “The minority report arose out of the decision by Nana Ohene Ntow to make supplementary recommendations to which the other four members of the committee strongly objected on the grounds that they were either not within the committee’s terms of reference or warranted by the evidence before the committee.”

According to the statement, “The National Executive Committee authorised this release to inform the general public about the outcome of the committee’s work.”

Minority Report

Meanwhile, a member of the committee has described as baseless a separate report submitted by Nana Ohene Ntow after he had prepared what he described as a minority report.

His report recommended, among other things, that  the 1^st Vice Chairman (now acting chairman), Freddie Blay and the National Treasurer, Kwabena Abankwa Yeboah, be referred to the Disciplinary Committee of the party for gross misconduct.

A former National Chairman, Peter Mac Manu, whom Ohene Ntow worked under, he stated, must also be ordered by the NEC of the party to explain in writing the circumstances under which he opened or caused to be opened a party account at the Trust Towers branch of Ecobank.

The flagbearer, Ohene Ntow stated, is also not cleared of ‘some £100,000 illegal payment.’

The claims by Ohene Ntow have, however, been dismissed by Kwaku Agyeman Manu, who explained on Adom Fm’s ‘Morning Show’ yesterday that they lack basis and is just an attempt at causing disaffection for certain persons in the party.

According to him, the former spokesperson for the Alan Kyeremanten campaign team was made chairman of the committee under ‘fraudulent’ means by the suspended chairman, Paul Afoko, insisting that he (Agyeman Manu) was supposed to chair it (committee).

“However, for the sake of peace, we did not complain and set off to work,” he said, adding that the suspended chairman “wrote the terms of the committee unilaterally.”

On the report of the committee, the Dormaa Central MP said all the members, including Nana Ohene Ntow, agreed to it, which was submitted by the Secretary of the Committee, Joe Osei Wusu.

“Ohene Ntow further recommended that we accept certain recommendations which we told him were not part of our terms of reference…so he decided to write a minority report and we agreed to allow him but he was told to bring the report so that we attach it to the main report as a dissenting view…,” Agyeman Manu said.

After agreeing to the proposal, Agyeman Manu said Ohene Ntow gave one flimsy excuse after the other for more than a month to justify why he had been unable to submit his minority report.

“When our duration passed for us to conclude our work and with pressure mounting on us to present our report to NEC, we decided to submit it without that of Ohene Ntow’s minority report,” Mr Agyeman Manu pointed out.

After submitting the committee’s report, Ohene Ntow later told them he had presented his, which Mr Agyeman Manu said was referring to “things which were not part of our terms of reference.”

And these things, he said, included calling for the punishment of former chairman, Peter Mac Manu, who never appeared before the five-member committee.

He thus called on Ghanaians to reject the “so-called minority report,” arguing that like the Supreme Court, it is the majority report that matters and not the dissenting view.

MUNTAKA GRILLED OVER 2ND WIFE

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Monday, December 21, 2015

National Democratic Congress (NDC) Member of Parliament (MP) for Asawase in the Ashanti Region, Muntaka Mohammed Mubarak, has admitted that he got married to a girl just three days after she completed writing her West Africa Senior Secondary School Certificate Examination (WASSCE).

The Asawase MP also admitted that he was ‘embarrassed’ when people started questioning the age of the girl who is currently his second wife.

He however, said he was not ‘embarrassed’ when she became pregnant and insisted that his second wife was not underage.

The MP was being cross-examined by lawyers for DAILY GUIDE in an ongoing libel suit he filed at the Human Rights Courts in Accra.

Reliefs

Alhaji Muntaka has sued DAILY GUIDE’s former reporter, Morgan Owusu; the Editor, Fortune Alimi; News One Editor, Halifax Ansah-Addo and Western Publications - publishers of DAILY GUIDE and New One - over a publication that his second wife was an SHS student.

He wants GH¢600,000 in damages for publications in DAILY GUIDE and News One respectively headlined: ‘Muntaka Picks 17-Year old Wife’ and ‘Minister Weds SHS Lover’ published on May 14, 2012 which he has deemed libelous.

Apart from the damages, the MP wants an apology and retraction, perpetual injunction restraining the defendants from further publication of the ‘defamatory matter’ as well as cost and or other reliefs.

The defendants have vehemently denied the defamatory imputation and said words complained of by Alhaji Muntaka were published on a matter of public interest and that the publication was for the benefit of the public.

Pregnant Girl

The MP told the court that he did not impregnate the lady before he married her and pointed out that they got married on May 13, 2012 and the wife gave birth to a baby boy on December 20, 2012 which translates into about 7 months and one week.

He said he did not ‘befriend’ the young lady while she was a student at SHS, even though he confirmed that the marriage arrangement was started three clear months when the girl was still in school before the grand marriage ceremony in Kumasi.

Crossfire

Daily Guide Lawyer: Now, Hon. Muntaka, I am putting it to you that you were befriending this young girl while she was a student at the Senior High School.

Muntaka: My Lord, I said no earlier. I said that I knew her before the marriage because I had seen her. Lawyer: As a matter of fact, you impregnated her before the marriage.

Muntaka: That cannot be the case.

Lawyer: I also put it to you that she gave birth naturally without any cut; if she was cut it would have been after nine months.

Muntaka: My Lord, the hospital where she gave birth is there, the records are there. She herself is there. I repeat my Lord, she gave birth prematurely through caesarean section.

Lawyer: As a matter of fact, after her last exam.

Muntaka: Yes my Lord, after she graduated, she never went back to write any exams.

Lawyer: What I am saying is that you married after the last exam; that is, paper. Graduation maybe later but after the last paper, that is, after she finished her last paper you married her.

Muntaka: My Lord, she completed school; a few days after she completed, we got married, I can’t remember any government secondary school doing graduation. I don’t know anything about graduation. All I know is that she completed before we got married.

Growing Pregnancy

The Asawase NDC MP said it was not the case that he had to quickly marry the young lady because her stomach was growing big.

Lawyer: You had to do so because her stomach was growing big and it was becoming an embarrassment to you.

Muntaka: My Lord that is not the case.

Lawyer: Now, according to you Hon. Muntaka, at some stage you were getting embarrassed because people were asking you questions over the age of your new wife. Is that correct?

Muntaka: Yes my Lord.

South Africa Trip

Lawyer: Now among the steps you took is that you travelled with your wife to South Africa and other places. Is that correct?

Muntaka: Yes my Lord.

Lawyer: So you made a passport for your wife to travel with her?

Muntaka: My Lord, she had a passport before we got married.

Lawyer: I put it to you that you made the passport for her.

Muntaka: My Lord, I know that it is the Foreign Affairs Ministry who made passport for all of us. I don’t know whether he is saying I financed the passport.

Lawyer: That is what I mean. You financed the passport.

Muntaka: My Lord, that is not the case.

Lawyer: As a matter of fact, you made birth certificate for her.

Muntaka: My Lord that is not the case.

Lawyer: From your pleadings and from your evidence I gather, please prove me wrong that your complaint is that you have been accused of having married someone below the age of 18. Am I right?

Muntaka: Yes my Lord.

Lawyer: And that marrying somebody under 18 according to you and your understanding of the law is criminal. Am I right?

Muntaka: No my Lord, my complaint is that they published that I married a minor. One of them gave the age 17. The other gave the age 15 or 16. So the emphasis is that I married a minor who by law is not supposed to be married.

Lawyer: Well, I believe the two of you agreed that a minor is somebody under 18. Is that correct?

Muntaka: My Lord, the publishers gave (sic) different ages and reported that I married a minor who is not supposed to be married. As to what her age is, was not crosschecked and she was tagged to be a minor.

The case continues.

POWER MINISTER EXPOSED IN AMERI DEAL

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Friday, 18 December 2015

Africa Centre for Energy Policy (ACEP) is putting more pressure on Minister of Power, Dr. Kwabena Donkor, to come clear following what is turning out to be falsehood he peddled in the controversial AMERI Group deal, which has sparked heated political debate in the country.

The beleaguered minister last Monday in a release justifying the AMERI deal, had claimed emphatically that the Dubai-based company was going to be responsible for the payment of all civil works that will lead to the installation of 10 new General gas generators as part of the entire $510 million contract sum - which ACEP even says has reached over $600 million.

Dr. Kwabena Donkor went ahead to say that the NDC government “has not made any payments to AMERI and will not be making any payments for the cost of the equipment. Per the agreement with AMERI, the Government of Ghana through the Volta River Authority (VRA), will only make payments to AMERI for power produced and supplied to the VRA just like any other Independent Power Producer (IPP).”

ACEP’s Exposure

However, ACEP, referring to the 2015 Annual Report of the Petroleum Fund by the Finance Minister, Seth Terkper, revealed that Ghana paid a whopping GH¢15 million for civil works alone.

Ibrahim Mahama, who is undertaking part of the civil works, has admitted receiving GH¢25 million for the work done, claiming that the payment was even low but because he wanted to save his brother, President John Mahama.

In line 5 of Page 34 of the report under Energy Infrastructure, the Ministry of Finance said the Interim Payment for Civil Works Under 250mw for AMERI Emergency Power Project at Aboadze in the Western Region, totaled GH¢15,144,563.85.

“The Minister of Power told Ghanaians in his press statement of 14th December that AMERI is responsible for all the civil works and indeed that forms part of the $510 million deal,” ACEP said adding, “Now, the Finance Minster reports that government paid for the civil works from oil money at GH¢15 million. Whom do we believe?”

Letter of Credit

Dr. Kwabena Donkor in his statement on Monday, had also hinted “Ghana’s requirement to provide a standby Letter of Credit (LC) for an amount of $51 million, which LC has been raised.

 “It must also be explained that the quoted price of $220 million in the Norwegian story for outright purchase of similar turbines is exclusive of all other costs such as auxiliaries, balance of plant, civil works, sub-station, installation of equipment, cost of financing, operation and maintenance etc,”

Indepth Analysis

ACEP in an indepth analysis, said it appears Ghana is going to pay more than $510 million quoted as the contract sum.

Its Chief Executive, Mohammed Amin Anta in a news release on Tuesday, said AMERI would be smiling to bank every year with the payment of $120 million - totaling $600 million for the contract - with the Ghana government also picking the cost of fueling. 

“AMERI will be paid $850,000 per turbine per month. This will amount to $8.5 million for the ten turbines, with cumulative annual payments of $102 million. In addition, an amount of $16.6 million will be paid as variable costs. This brings the total payment due to AMERI and its partners to almost $120 million,” ACEP pointed out.

Middleman Role

Already, it has been alleged that AMERI Energy signed the contract with the government but behind-the-scenes, it appeared to be playing a middleman’s role. According to the Norwegian newspaper, AMERI has a contract with a Greek firm called METKA for the supply of the turbines. METKA also got the equipment from GE in the United States.

AMERI Energy, according to the newspaper, is paying METKA $350 million for the turbines, compelling some experts to question where the $510 million of which the $350 million is a part, will be going.

NORWEGIAN NEWSPAPER HITS BACK AT AMERI

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Friday, 18 December 2015

The award winning Norwegian newspaper, Verdens Gang (VG), which broke the news that AMERI Group had entered into a deal with the government of Ghana for the supply of gas turbines at exorbitant rate, has hit back at accusations that its reportage on the issue was ‘false’ and ‘malicious.’

They also published that a Pakistani-born Norwegian, Umar Farooq Zahoors, who until August 2015, was AMERI Group’s Chief Executive, is a wanted man internationally for alleged organized crime.

Malicious Publication

The issue of malice was imputed by Sheikh Ahmed Bin Dalmook Juma Al Maktoum, chairman of the AMERI Group, in a statement denying the Norwegian newspaper’s claims about Umar Farooq Zahoors and also debunking the issue that AMERI was shortchanging Ghanaians in the deal.

Sheikh Ahmed Bin Dalmook Juma Al Maktoum then said AMERI Group was proceeding to sue the newspaper for libel.

Graphic Details

VG in its publication last week, had given graphic details about how the NDC government entered into the controversial deal with AMERI Energy for the supply of 10 new General Electric (GE) TM 2500 aeroderivative gas turbines at an exorbitant cost of $510 million with additional $100 million variable costs and said the gas generators have outright purchase price of $220 million.

The Norwegian newspaper described in the publication the criminal activities of Farooq and how he played a key role in the signing of the contract agreement as well as how NDC government officials, including Power Minister Dr. Kwabena Donkor, are involved in what the paper says is fraud being perpetrated on Ghanaians.

The newspaper further published that the power generating turbines were estimated to cost $220 on the international market but the NDC government was contracting them for $510 million for Ghana, excluding service and variable charges.

VG’s Denial

Gard Steiro, news editor of VG, said in a statement yesterday that the newspaper had read the press release from the Dubai-based company and added that “VG can live with Sheik Ahmed Bin Dalmook Juma al Maktoum regarding our journalism as malicious. When His Highness states that we have published false accusations he should back his allegations up with facts.

“The Sheikh does not do so. The press release from AMERI Group appears to be a striking attempt to create a smokescreen. Not one single piece of information in VG’s exposé is refuted.”

Verifiable Facts

Mr.  Gard Steiro,“This is not surprising. Our version is both correct and verifiable.”

The News Editor indicated,“VG has never claimed that Umar Farooq Zahoor is the owner of AMERI Group. We wrote that he was managing director when the $510 million contract was signed. This information comes from Ghana’s energy minister and other sources. We note that AMERI Group confirms his position in its press release. No credible explanation.”

Reporting Figures

Gard Steiro said VG had never stated that AMERI Group defrauded the Ghanaian authorities saying, “We have only reported figures from official documents such as minutes from the Ghanaian parliament and the contract signed by the Sheik himself. None of the figures which VG has published are disputed.

“We have only pointed out that the contract for the delivery of 10 gas turbines appears to be alarmingly expensive. So far, neither the energy minister nor AMERI Group has attempted to give VG anything like a credible explanation.

Wanted For Fraud
According to the VG News Editor, “the big issue is why the Ghanaian authorities have chosen to do business worth hundreds of millions with a man who is wanted for fraud.

“The fact is that Umar Farooq Zahoor has been charged and wanted since 2013.”

NPP PICKS TEAM FOR 2016

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Friday, 18 December 2015

The New Patriotic Party (NPP) appears to be battle ready for the 2016 general elections, with the composition of a campaign team to be managed by the party’s former chairman, Peter Mac Manu.

The official unveiling of the team is expected to be done at the 15th Extraordinary Annual Delegates’ Conference of the party which takes place tomorrow at the Coronation Park, Sunyani, in the Brong Ahafo Region, under the theme ‘Arise for Change 2016’.

Apart from Mac Manu as the Campaign Manager, MP for Okere Dan Kwaku Botwe has been appointed the party’s Campaign Strategist while National Organiser John Boadu was selected as the Director of Operations; and he is to be supported by Sammy Awuku, National Youth Organiser; Otiko Djaba, Women’s Organiser; and Kamal Deen Abdulai, Nasara Coordinator.

Furthermore, former Campaign Manager Boakye Agyarko was appointed the Policy Advisor, with Ken Ofori-Atta as Director for Fundraising while Edward Boateng will serve as Director for Administration and Logistics.

The names were given out by the flagbearer, Nana Addo Dankwa Akufo-Addo, at the National Council meeting on Wednesday ahead of the Sunyani delegates’ conference tomorrow.

The various regional chairmen will also play active roles in the decentralisation of the campaign.

According to the NPP, all party organisers across the country are supposed to be part of the campaign operations, while all constituency executives will be part of their constituency campaign teams, just as regional executives will be part of the regional campaign teams. 

It said each of those teams will also have specialised committees; and all Regional Chairmen will head the regional campaign teams while Constituency Chairmen will head the constituency campaign teams.

The detailed composition of the campaign team would be announced tomorrow at the delegates’ conference.

AMERI FIGHTS BACK OVER $600M SCANDAL

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Thursday, December 17, 2015

THE AMERI Group has confirmed that Pakistani-born Norwegian, Umar Farooq Zahoor, who is a wanted man internationally for alleged organised crime, was the group’s Chief Executive until August 2015.

Government, through a statement from the Power Ministry, had denied that Farooq was linked to the company and that he only acted as a witness to the agreement on behalf of Ameri.

The Dubai-based group was breaking its silence on the gas turbines deal with Ghana which had set tongues wagging in the country over the contract price of $600 million, according to ACEP estimates.

The story was first published by popular Norwegian news outlet Verdens Gang (VG) last Saturday, giving graphic details about how the NDC government entered into the controversial deal with Ameri Group for the supply of 10 new General Electric TM 2500 aeroderivative gas turbines at an exorbitant price of $510 million with additional $100 million variable costs.

The gas generators have an outright purchase price of $220 million.

The Norwegian newspaper described in the publication the criminal activities of Farooq and how he played a key role in the contract signing, as well as how NDC government officials including Power Minister Dr Kwabena Donkor were involved in what the paper described as fraud being perpetrated on Ghanaians.

The award-winning Norwegian newspaper further published that the power generating gas turbines were estimated to cost $220 on the international market, but the NDC government contracted them for $510 million for Ghana, excluding service and variable charges.

Farooq Disclaimer

“Mr Umar Farooq [who] served as CEO of Ameri Group until August 2015 was never a shareholder nor a partner in the company. Mr Farooq resigned as CEO in order to pursue other bigger business opportunities,” the group said in a statement in reaction to the Norwegian newspaper’s claims.

The statement, which was signed by Sheikh Ahmed Bin Dalmook Juma Al Maktoum, a member of the ruling family of Dubai, said: “Ameri Group LLC, duly incorporated under the laws of United Arab Emirates with a registration number 1143904 and also registered with the Chamber of Commerce of Dubai UAE under membership number 240056 with office address in Emgate Building, Sheikh Zayed Road Dubai UAE, signed a BOOT agreement with the Government of Ghana on February 10, 2015 for a 250 MW fast track power project in Takoradi.”

According to the group, Ameri Group LLC “is solely owned by His Royal Highness Sheikh Ahmed Bin Dalmook Juma Al Maktoum, a member of the ruling family of Dubai, UAE,” adding that “Ameri Group LLC develops energy projects on the continent of Africa and elsewhere. Recently, Ameri Group contracted to supply emergency power to the Government of Ghana.”

Slanderous Accusations

The statement claimed that the newspaper publication was libellous.

“An article published by a tabloid newspaper called VG from Norway made false and slanderous accusations regarding the emergency power project agreement executed between Ameri Group and the Government of Ghana.

 Ameri Group stands by its agreements with the Government of Ghana and believes that we have assembled a world class team of developers to accomplish the job on time and on budget. Joining us on the project is the Greek EPC Contractor, METKA.”

The statement said the Norwegian newspaper’s article “targets Mr Umar Farooq, not only wrongly portraying him as the owner of the company, but also tries to malign his character. Moreover, it states that Mr Farooq attempted to swindle the Government of Ghana through this transaction by inflating the price of the contract.”

Ridiculous Claim

According to the group, the claim was “ridiculous” because “the contract was agreed upon by the Ministry of Power and thereafter, ratified by the Ghana Parliament with full pricing transparency.”

They said it was false for the newspaper to hold that “Mr Farooq, on his own, caused the transaction to occur. It is a matter of record that the sole owner of the above mentioned company is His Royal Highness Sheikh Ahmed Bin Dalmook Juma Al Maktoum.”

Holding Brief

The Ameri Group appeared to be holding brief for Umar Farooq Zahoor for his alleged fraudulent activities back in Norway when it claimed the fugitive had not been to the European country since 2005.

“The article in VG shows that allegations against Mr Farooq were raised in Norway of some fraud which was committed in 2010. This is patently false, as in 2010 Mr Farooq was residing in Dubai as a legal resident since 2005 [sic] and had not been to Norway since. During the tenure of his employment, Mr Farooq was never wanted or alleged of any crime/fraud in any part of the world.”

Intention To Sue

It said the Ameri Group had already retained international law firms “to review our legal rights and use them against this slanderous act of the newspaper,” adding  that “based on their legal advice, we will reserve all rights to file a defamation case against VG in Norway on the basis of these unfounded false allegations and accusations.”

Parliament Joins Debate

In a related development, Parliament has reacted to the raging debate saying it followed due process in approving the Ameri deal.

A statement issued and signed by Deputy Director, Public Affairs, Kate Addo, said the agreement was first brought to Parliament on the 3rd of March, 2015 and was referred to the Committee on Mines and Energy in accordance with the rules of the House.

“The Committee in deliberating on the agreement asked for additional information from the Ministry of Power which was duly provided.”

Expert Advice

The statement said the Committee further invited the sector minister and other technical officers “to attend and proffer expert advice on how to proceed with the agreement, which advice was taken and acted upon by the Committee.”

It said the agreement was never rushed through Parliament as was being speculated, saying, “the said Bill was brought before the House and laid on the 3rd of March, 2015. Once the agreement was laid, the document became a public document and any individual, group of persons who wanted to comment on it could have done so in a memo to the committee or to the House as a whole.”

The statement confirmed that the agreement was approved on the 20th of March 2015, eighteen (18) clear days after it had been brought to the House.

“Invocation of order 80(1) during the consideration of the agreement does not in any way imply that the agreement was rushed through the House. On the contrary, it is an indication of the importance attached to the agreement. The official report of Parliament also indicated that no Member of Parliament wanted to speak on the matter and was turned down.”

AMERI CONTRACT SUM JUMPS TO $600M

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Wednesday, December 16, 2015

It appears Ghana will pay more than the $510 million quoted as the contract sum for the provision of 10 gas turbines by Africa & Middle East Resources Investment Group (AMERI Energy).

According to the Africa Centre for Energy Policy (ACEP), AMERI will be smiling to the bank every year with the payment of $120 million, totalling $600 million for the five-year contract, with the Ghana government also picking the cost of fuelling.  

“AMERI will be paid $850,000 per turbine per month. This will amount to $8.5 million for the 10 turbines, with cumulative annual payments of $102 million. In addition, an amount of $16.6 million will be paid as variable costs. This brings the total payment due to AMERI and its partners to almost $120 million,” ACEP said in a statement issued yesterday.

The controversial deal between Ghana and AMERI has sparked a heated debate in the country since award-winning Norwegian newspaper Verdens Gang (VG) published that the power generating gas turbines are estimated to cost $220 million on the international market but the NDC government is contracting them for $510 million for Ghana, excluding service charges.

Power Minister Dr Kwabena Donkor, in his rebuttal on Monday, created the impression that all Ghana needed to do was to pay AMERI Energy a total of $510 million for five years for 250megawatts emergency power as part of efforts to solve the protracted power crisis (aka dumsor) which is wreaking havoc on the economy.

However, a careful reading of the contract showed that the $510 million is solely for renting the 10 new General Electric TM 2500 aeroderivative gas turbines and it means that Ghana is going to incur an additional cost of over $150 million in the deal.

Contract Details

At Annex G of the contract titled, “Pricing, Contract Price, Monthly Required Payments,” the document states that equipment payment will cost $850,000 per month per unit, while total payment per a year will be $102 million.

According to the document, variable charge per year is $16.6 million.

With a total capacity of 250MW, the contract further said the number of units to be deployed will be 10 and output of each unit is expected to be 23MW while guaranteed output is 230MW and guaranteed availability expected to be 90 percent.

Middleman Role

Already, it has been alleged that AMERI Energy signed the contract with the government, but behind-the-scenes, it appeared to be playing a middleman’s role since according to the Norwegian newspaper, AMERI has a contract with a Greek firm called METKA for the supply of the turbines.

METKA also got the equipment from GE in the United States.

AMERI Energy, according to the newspaper, is paying METKA $350 million for the turbines, compelling some experts to question where the rest of the $510 million, of which the $350 million is a part, will be going to.

Apart from the equipment price of $510 million, there is an additional annual payment of $16.6 million variable costs to AMERI for five years, translating into some $83 million within the five-year contract period.

Fuel For Turbines

Interestingly, fuelling of the turbines which are currently being installed in Takoradi is the responsibility of the government, per the agreement.

AMERI Energy’s responsibility in the deal is to mobilise, install, commission, operate, maintain and transfer “the relevant AMERI Energy Equipment, as more fully described in Annex E of this agreement.”

ACEP’s Statement

The Africa Centre for Energy Policy (ACEP), which has been critiquing the government’s energy contracts, has issued a release and said there is no value for money in the deal.

“Under normal circumstances, we would not have responded to the statement because it was not directed at us. However, given that we were the first to raise issues relating to the deal in March 2015, our interest is further strengthened by our quest to ensure an informed public discourse on it. Our response to the statement is therefore articulated as follows,” 

Mohammed Amin Anta, Executive Director of ACEP said in a statement.

“The key issue is whether the spreading of payments for a US$220 million project over five years end up as US$510 million, excluding O&M costs, given that the benchmark cost of capital (Libor) is less than 1%? Is this value for money?”

Erroneous Statement

ACEP said that it is ‘erroneous’ for the Power Minister to hold that government has not made any payments to AMERI Energy and will not be making any payments for the cost of the equipment.

ACEP said the explanation the minister offered could not be “a classical IPP arrangement,” saying, “VRA is paying for the equipment as well and will own it after five years.”

“Typical IPP arrangements will not be for five years when the equipment can have an operating life of 20 years. As stated earlier, the Government/VRA is supplying fuel so all payments to AMERI will be towards the cost of the turbines plus O&M, which is minor compared to the leasing (or Fixed cost) charges.”

It said the standby LC is to ensure that the monthly payments for the cost of the turbines are secured and in case of default, AMERI will fall on it to redeem any outstanding payment defaults.

Charity Organisation

The statement said the minister’s point that Ghana will own the turbines after five years “confirms our point that Ghana is paying for the equipment because it is not possible to take ownership without paying for them, assuming as the Ministry said, we are only paying for the power produced from the turbines. Indeed, AMERI is not a charity to ‘donate’ 250 MW to Ghana for ‘free’.

“Ministry of Power should confirm the other costs (auxiliaries, balance of plant, financing costs, etc) in the case of the AMERI plant. It will certainly not escalate the costs to $510 million over five years.”

METKA Connection

“Fortunately, METKA, which has a deal with AMERI to technically own, install and operate the turbines for almost five years before handing them over to VRA, stated in a statement that the entire project would cost $350 million over the period, including the cost of installation, civil works, etc. 

This sounds reasonable assuming that in addition to the cost of the turbines, about $130 million would be devoted to meeting the other costs (installation, civil works, etc). How did the payments due increase to $510 million?”

Auxiliary Works

The statement said the cost of all auxiliary works is being borne by AMERI Energy and will be recovered through the monthly payments to AMERI, adding, “so it should not be made to seem that AMERI is bearing those costs for free.

“The question is, if Government bought the turbines outright at $220 million, how much would it have spent to deliver them to Ghana and to install and operate them? Would that have cost $290 million?”

“We understand the reason given to Parliament for opting out of an outright purchase was on grounds of lack of money. Assuming this is true, where will Government get the money to pay an annual fee of almost $120 million to AMERI ($102 million plus $16.6 million)?”

ACEP demanded the release of the report the minister claimed was from GE Consortium to the VRA for similar equipment on rental basis which he said proved to be far more expensive and was therefore rejected by the authority.

$510M AMERI DEAL STINKS

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Tuesday, December 15, 2015

Details are emerging about how the controversial Africa & Middle East Resources Investment Group (Ameri Group) deal to supply 10 gas turbines to the Government of Ghana was signed, with the country paying $290 million more than it should for the $220 million power generators.

The lid was blown at the weekend by award-winning Norwegian newspaper Verdens Gang (VG), which published that the power generating gas turbines were estimated to cost $220 on the international market, but the NDC government is contracting them for $510 million for Ghana, excluding service charges.

The newspaper’s investigative journalist is tracking a Pakistani-born Norwegian, Umar Farooq Zahoor, a fugitive who is said to have played a lead role as a director in the deal between Ameri Group and the government.

Umar Farooq is said to be the middleman between the Ghana government and the Dubai-based single purpose company.

Umar Farooq is currently being pursued by the authorities in Norway as well as Interpol for organised crime including money laundering.

Real Contract

A perusal of the Build, Own, Operate and Transfer (BOOT) agreement showed clearly that it is the government which is supposed to provide and in addition prepare the land for the installation of the 10 new General Electric TM 2500 aeroderivative gas turbines by Ameri Group.

Ameri signed the contract with the government but behind the scenes, it appeared to be playing a middleman’s role, since according to the Norwegian newspaper Ameri has a contract with a Greek firm called METKA for the supply of the turbines.

Ameri Group, according to the newspaper, is paying METKA $350 million for the turbines, compelling some experts to question where the rest of the $510 million, of which the $350 million is a part, will be going to.

Apart from the equipment price of $510 million, there is an additional annual payment of $16 million variable costs to Ameri for five years, translating into some $80 million within the five-year contract period.

Fuel For Turbines

Interestingly, fuelling of the turbines which are currently being installed in Takoradi is the responsibility of the government, per the agreement.

Ameri Group’s responsibility in the deal is to mobilise, install, commission, operate, maintain and transfer “the relevant AMERI Energy Equipment.”

Before the Norwegian newspaper’s publication last week, Dr Charles Wereko-Brobby, a former Chief Executive of Volta River Authority (VRA), had hinted that the generators should not have cost Ghana more than $220 million if they were purchased directly from General Electric, but from a third party, Ghana will be coughing about $750 million for the five years contractual period.

METKA Excitement

METKA had confirmed its involvement in the deal through a news release issued on September 17, 2015 after the deal was clinched, saying that it was partnering Ameri Group for “its first substantial project in sub-Saharan Africa”.

“METKA is pleased to announce its first substantial project in sub-Saharan Africa: Its 100% subsidiary, Power Projects Sanayi İnşaat Ticaret Limited Şirketi (Power Projects Limited), has signed a major contract to provide a fast-track EPC as well as Operation and Maintenance support for a 250MW Power Plant in Ghana,” it said, adding that “the project is a 5-year Build, Own, Operate and Transfer (BOOT) and was signed with the Government of Ghana and METKA’s partners in the deal, Ameri Group, the energy investment arm of His Royal Highness Sheikh Ahmed Bin Dalmook Al Maktoum, member of Ruling family of Dubai.”

GE Support

“The project was made possible with the active support of General Electric of the US. It consists of ten new General Electric TM2500+ mobile gas turbines together with METKA’s well-proven modular balance of plant concept already successfully implemented for forty similar fast-track units internationally.

“By the award of this new contract, METKA adds its share in this deal, which exceeds $350 million, in its current backlog and also makes significant progress on its strategic goal to build on its successful expansion within the Middle East and North Africa region, and becomes a leading player in the sub-Saharan Africa power market as well.”

Misleading Parliament

However, the deal has seriously raised eyebrows as Ghana appears to have been swindled.

Deputy Director of Africa Centre for Energy Policy (ACEP), Benjamin Boakye accused Power Minister Dr Kwabena Donkor, whom the Norwegian publication indicted for fronting what looked like a dubious transaction on behalf of Ghana, of deceiving Parliament.

He told Joy FM that emerging events showed clearly that Dr Donkor gave different figures to represent the cost of the 10 turbines.

"If you look at what was presented to Parliament and the statement that has come out today, it smacks of deception because if you told Parliament that it was going to cost us $411 million and now you are agreeing that the cost of the plant is $220 million then you did not help Parliament to even do due diligence. You misrepresented the facts before Parliament," he stated.

He also accused the government of using the middleman -Ameri Group- when it could have gone directly to buy the turbines from either the GE or METKA at a far reduced rate. According to him, METKA, the company which owns the turbines, is being paid an amount of $350 million which means the extra $160 million has been paid to Ameri Group just for playing a third party role.

Minister’s Reaction

Dr Kwabena Donkor, after an initial comment, officially issued a statement seeking to set the records straight on issues of cost of the plant and due diligence on the Ameri Group.

As if the Ameri deal was free of charge, Kwabena Donkor claimed that as a BOT, the NDC government “has not made any payments to Ameri and will not be making any payments for the cost of the equipment,” and that “per the agreement with Ameri, the Government of Ghana through the Volta River Authority (VRA) will only make payments to Ameri for power produced and supplied to the VRA just like any other Independent Power Producer (IPP).”

He said Ghana is required to provide “a standby Letter of Credit (LC) for an amount of $51 million, which LC has been raised.”

“It must also be explained that the quoted price of $220 million in the Norwegian story for outright purchase of similar turbines is exclusive of all other costs such as auxiliaries, balance of plant, civil works, sub-station, installation of equipment, cost of financing, operation and maintenance, etc.”

 Dr Kwabena Donkor further said that the government has not entered into any agreement with Umar Farooq Zahoor but rather with Ameri Group where he once worked.

He said the Bank of Ghana which reportedly issued the LC, as well as JP Morgan, the ministry, AG’s Department and Parliament all conducted their own due diligence before giving a go-ahead for the project.

But in response to the minister’s claims that the Government of Ghana had not made ANY PAYMENTS to Ameri and will not be making any payments for the cost of the equipment, Professor Stephen Kwaku Asare, a US-based Ghanaian law teacher, observed that “this statement is facially absurd and misleading. I can now say that the statement is false and the minister simply lied.”

Prof Asare explained that Section 10 of the contract stipulates: "Required Payments

(a) government is required to make monthly payments in consideration of installation, operation and maintenance

(b) the aggregate payment is equal to the contract price, which is set forth in Annex G (I am yet to get the annexures).

(c) variable costs to be paid will equal to number of fired hours and amount stipulated in Annex G

(d) the required payments for the AMERI ENERGY equipment will begin to accrue on the earlier of...”