AG SUED OVER CONSTITUTIONAL AMENDMENT

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By William Yaw Owusu

Thursday, July 16, 2014

The proposed amendment of certain aspects of the 1992 Constitution could be in jeopardy following a suit filed against the Attorney General by Professor Stephen Kwaku Asare.

According to the Professor of law, the President has no power to set up a commission to initiate amendments or draft amendment bills to the Constitution as is currently being done.

He therefore, filed the suit at the Supreme Court challenging the executive arm of government for what he described as the President’s usurpation of parliamentary powers and misappropriation Article 278(1).

The plaintiff wants a declaration that “the Constitution Review Commission of Inquiry Instrument, 2010, C.I. 64 is null, void and of no effect as it contravenes the letter and spirit of Article 289(1) of the 1992 Constitution, in that the effect, if not the intended purpose, of C.I. 64 is to usurp powers that the 1992 Constitution expressly, exclusively and specifically conferred to Parliament.”

He wants another declaration that the powers granted to the President under Article 278(1) to “appoint a commission of inquiry into any matter of public interest” does not include the power to establish a commission to review and propose amendment bills to the Constitution where such powers to review and propose amendment bills to the Constitution have been expressly, exclusively and specifically conferred to Parliament.

The plaintiff further wants a declaration that Article 278(1) does not grant the President “an all-purpose commissioning power” but only gives him the power to commission an independent inquiry to investigate and establish the truth relating to an entity’s affairs, activities or some specific occurrence that is in the public interest.

Prof. Asare also wants a the highest court of the land that the Constitution Review Implementation Committee (CRIC) set up by the President to finalize amendment bills for both the entrenched and non-entrenched provisions is alien to the Constitution.

The plaintiff wants the court to declare that any of CRIC’s activities directed at finalizing amendment bills that touch on any and all aspects of the Constitution, whether entrenched or non-entrenched, are unlawful, unconstitutional, impermissible, null, void and of no effect.

He further wants a declaration that the 1992 Constitution can be amended only in accordance with the express provisions of Chapter 25 of the Constitution and that the President’s role in any such constitutional amendments is limited to the ministerial tasks stipulated in Article 290(6), 291(4) and 292(a).

He also wants a declaration that Parliament’s power to amend the Constitution as stipulated in Article 289(1) is plenary and exclusive and another declaration that Parliament’s power to amend the Constitution as stipulated in Article 289(1) cannot be delegated to or usurped by the President.

Prof. Asare wants an order directing the President, the Chairman and Members of the Constitution Review Commission (CRC), the Chairman and Members of the CRIC, the Attorney General and their assigns to “permanently cease and desist from taking any actions that seek to amend or otherwise disturb the Constitution in so far as such actions are inconsistent with Chapter 25 of the Constitution.”

Summary of Particulars

It is the contention of the Plaintiff that “the Constitution can only be amended by its terms” and added that “Parliament is the sole body that can initiate, consider and propose amendments to the Constitution.”

“Parliament’s power to amend the Constitution is not only plenary and exclusive but also cannot be delegated to or usurped by the President, the Commission (CRC) or the Committee (CRIC). The President’s role in constitutional amendment is limited to the ministerial task of giving assent to bills properly passed by Parliament,” the plaintiff averred.

CHINESE COMPANY ACCUSED OF VIOLATIONS

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By William Yaw Owusu

Wednesday, July 16, 2014

Africa Coastal Services (ACS), a Chinese shipping company operating at the Tema Port, has been accused of allegedly violating the rights of its Ghanaian employees with impunity.

The employees accused the management of the company of using what they claimed to be ‘overt and covert’ methods to compel the employees to be members of a labour organization called National Union of Harbour Employees (NUHEM).

According to the workers, such acts constitute Unfair Labour Practice and violates Section 128 of the Labour Act, Act 651 of 2003, which states that “An employer who takes part in the formation of a trade union or, with the intention of adversely influencing a trade union, makes  any contribution in money or money’s worth to that trade union, is guilty of unfair labour practice.”

DAILY GUIDE investigations revealed that the workers were members of NUHEM but have decided to quit the union and join the Maritime and Dockworkers Union (MDU) of the Trades Union Congress (TUC).

They said they were leaving NUHEM because they were unhappy that the union was taking decisions with the management of the Chinese company without consulting them.

The management of the company was unhappy about the workers’ decision to join MDU and then subsequently introduced redundancy exercise which affected the leadership of the local union who were spearheading the unionization of the members into MDU.

The company had embarked on two redundancy exercises.

The first redundancy exercise affected 16 employees and the second also affected a similar number.

As a result, six key local union leaders who were instrumental in the unionization of the workers to MDU were reportedly declared redundant by management.

Some of the employees, especially the local union leaders affected by the redundancy exercise were given redundancy letters in a meeting which had been convened to discuss the redundancy exercise and were asked to leave the premises of the company the same day.

The action of the management of Africa Coastal Services is a violation of Section 65(1) (a) of the Labour Act which requires that the employer provides information in writing to the trade union not later than three months before the contemplated changes.

The management of Africa Coastal Services did not discuss with the union measures taken to mitigate, avert or minimise the adverse effect of the redundancy exercise on the workers and this violates Section 65(1) (b) of the Labour Act.

Investigations further revealed that after declaring the permanent employees redundant, the management of ACS employed casual workers to replace the permanent ones in clear contravention of the Decent Work agenda of ILO which the government of Ghana is signatory.

The workers appealed passionately to the Ministry of Employment and Labour Relations as well as the labour authorities to investigate the allegations against Africa Coastal Services limited.

When contacted, Emmanuel Asore, Human Resource Manager of the Chinese firm, denied the workers’ claims and said the company does not interfere in union matters.

He said “management does not sit down to discuss union matters, let alone interfere in what they do.”

ADENTAN LAND COMPENSATION STALLED

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By William Yaw Owusu & Rebecca Adwoa Solomon

Tuesday, July 15, 2014

The payment of compensation to owners of Adentan lands in Accra by the government has been stalled because there are currently multiple claims over who actually owns the lands.

Kwesi K. Bentsi-Enchil, Chief Valuer in charge of compensation schedule at the Land Valuation Division of the Lands Commission yesterday, told the Commission of Enquiry investigating the payment of judgement debts that 32 claimants are chasing 2068.99 acres of land which is occupied by the Adenta Housing project.

The Agbawe Family led by Nii Kpobi Asawa II, had petitioned the commission presided over by Justice Yaw Apau of the Court of Appeal, claiming the government needed to compensate them for 1,283.11 acres of land taken from them.

“The Agbawe family per the records made the claim in October 1993. The original acquisition was made in 1974 and amended in 1991 and further amended in 1992 covering a total 2068.99 acres. It is covered under E.I. 15. Originally it was E.I. 125 of 1974 and E.I. 19 of 1991,” the Chief Valuer testified.

He said although the net area for the Agbawe Family claim stood at 1,283.11 acres, it conflicted 26 other claims submitted per the proprietary plan.

When Justice Apau enquired whether the acquisitions were in respect of the same stretch of land Mr. Bentsi-Enchil said “unfortunately, the Act itself does not specify the basis for the amendment of the acquisition...It will require picking up the plans and studying it.”

He said the 2068.99 acres was valued in 1994 at ¢21.7billion adding “the Agbawe Family claim itself was for a total of 1395.11 acres but the deductions out of that are either based on court judgements or evidence of some claims rooted in Agbawe grants.”

He said the division was not aware that any compensation had been paid even though in 1999, an application was made for a release of ¢2.6 billion in respect of the Aggrey Cattle Limited claim for 498.32 acres.

He said the division could not confirm whether a claim had been received from the Okataba Family who are also laying claim to the lands and explained that it was due to the fact that the names stated on the proprietary plans did not indicate the families.

“It is possible that a family name on the proprietary plan may be on behalf the Okataban Family but as the records stand now it is difficult to say…There are a total of 32 claims and I need to read up the file to establish whether any one of them is acting on behalf of the Okataban Family.”

He added that “I know for instance that Nungua has a claim, La has a claim and a couple of families and secondary interest claims based on grants.”

NO SHOW AT JUDGEMENT DEBT COMMISSION

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By William Yaw Owusu

Thursday, July 10, 2014

Activities at the Commission of Enquiry investigating the payment of judgement debts were halted yesterday due to the unavailability of witnesses.

Representatives of agencies subpoenaed to testify before the Sole-Commissioner Justice Yaw Apau of the Court of Appeal failed to appear even though they had been duly served with the processes.

As a result, Dometi Kofi Sokpor, counsel for the commission apologized to the public and journalists detailed to cover the proceedings and promised to expedite action on cases filed.

Representatives from the Ministry of Food and Agriculture and Ghana Highway Authority respectively were expected to testify but failed to turn up.

The Ministry of Agriculture was to testify in the case in which Delta Foods, a Ghanaian corporation that was in contract with the government to sell corn that would be purchased in the United States and delivered was paid a whooping GH¢20.3 billion as judgement debt in 1999.

The Chief Executive Officer of Ghana Highway Authority on the other hand was expected to tender in evidence all construction certificates issued to Construction Pioneers (CP) from 1991 to 2012.

Instances of ‘We are still searching for documents’ and ‘Please give us more time to put our things together’ from agencies and institutions appearing before the commission are replete with the daily proceedings.

Mandate

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 in late September 2012 after public uproar over the payments in what has now come to be termed as Judgement Debts (JD).

Notable among them were payments made to CP (€94 million) and the never-ending case of GH¢51.2million parted to the self-styled National Democratic Congress (NDC) financier, Alfred Agbesi Woyome, both of which many believed were dubious and frivolous.

Timeframe

The commission which was set up in late September 2012, commenced preparatory works on October 8, 2012 before starting full public sittings on November 28, 2012.

It had a period of 12 months (Around November 2013) to submit its report. However, due to the fire accident that rendered the Old Parliament House in Accra where the commission conducted proceedings, inhabitable, the President gave the Sole-Commissioner an extension of time.

It is not clear how much time was extended to the commission but sources say they will conclude public sittings by August, 2014.

With the commission’s recommendation the government expect that “the instances where public funds are utilized to make payments in satisfaction of judgment debts and public debts arising from akin processes are limited; government does not incur undue financial losses when it does business with private persons or institutions.”

Aveyime Land

At its sitting on Tuesday, the Lands Commission said claimants are hotly pursuing them since news broke that the Carmichael family had received a compensation of GH¢3.2million and GH¢530,628.44 ($2.4million) in respect of the Aveyime lands acquired by the government in the 1970s.

The Commission heard how the government in 2009 released the amount to the Carmichael family who owned the Messrs Bator Agricultural Industry Limited cattle ranch, leaving out the indigenous claimants.

Conflict Resolution

The Chief Valuer in charge of compensation at the Valuation Division of the Lands Commission Kwesi Kobea Bentsi-Enchil told Justice Apau that although the claimants are hotly pursuing them, “we always refer to them that until they resolve their conflict, we cannot process their claims any further.”

He said there are 11 claimants in total out of which the Carmichael family was paid and added that “Traditionally, the office has held back all claims until all conflicts are resolved to make sure that we do not stray into other areas and also that the office will not be cited for negligence in any form.”

AVEYIME LAND OWNERS PURSUE LANDS COMMISSION

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Thursday, July 10 2014

The Lands Commission has said claimants are hotly pursuing them since news broke that the Carmichael family had received a compensation of GH¢3.2 million and GH¢530,628.44 ($2.4million) in respect of the Aveyime lands acquired by the government in the 1970s.

The Commission of Enquiry investigating the payment of judgement debts heard how the government in 2009 released the amount to the Carmichael family who owned the Messrs Bator Agricultural Industry Limited cattle ranch, leaving out the indigenous claimants.

Conflict resolution

The Chief Valuer in charge of compensation at the Valuation Division of the Lands Commission Kwesi Kobea Bentsi-Enchil told Sole-Commissioner Justice Yaw Apau yesterday that although the claimants are hotly pursuing them, “we always refer to them that until they resolve their conflict, we cannot process their claims any further.”

He said there are 11 claimants in total out of which the Carmichael family was paid and added that “Traditionally, the office has held back all claims until all conflicts are resolved to make sure that we do not stray into other areas and also that the office will not be cited for negligence in any form.”

Give-and-take

Justice Apau: The indigenous claimants have not been paid but the foreigner has been paid?

Witness: That is what is on the record.

Dometi Kofi Sorkpor (Counsel for Judgement Debt Commission): Those who have not been paid. Do they pester the Lands Commission with their claims?

Witness: They hotly pursue us.

Documents available to the commission indicated that the Carmichael land was acquired in 1976 and it was in 1978 that they put in a claim for compensation, attaching the valuation report and the compensation had been assessed at ¢330,000.

Unexpired lease

When Justice Apau asked if what the government paid was the unexpired lease, the Chief Valuer said “The basis for any payment would have been the unexpired lease but I am not sure of the basis for whatever was concluded. We can only equate the amount paid to the unexpired lease.”

Probed further if after the expiration of the lease, the original owners could claim compensation, Mr. Bentsi-Enchil said “they claimed the reversionary freehold interest.”

“Obviously they are not aware of the professional implications. They are thinking that they are going to be paid compensation for everything but the assessment will break it down to respective interests which really form the basis for the compensation assessment and all to be paid concurrently.”

He said he was unsure if the overall land acquired had been valued but added that “because Messrs Bator Agricultural Industry Limited’s was valued, the non values related to the time is available on file to form a basis for taking off claim assessments and all of that.”

“In the present stage, eight claims are in conflict. If they have to resolve their claims, the best approach is for them to resurvey their sites. And a resurvey may change the whole composition of this plotting and therefore, it estops the office from processing conflict-free areas and paying now.”

Asked if there had not been any encroachment on the land Mr. Bentsi-Enchil said “encroachment cannot be overruled but that is not the prerogative of my office. It is up to the beneficiary of the acquisition whoever was acquired for to protect the land.”

“Indeed in a whole lot of acquisitions, they have been encroached invariably by the same original owners.”

MYSTERY OVER ¢34BN COMPENSATION

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By William Yaw Owusu

Tuesday, July 8, 2014

Even though documents available to the Commission of Enquiry investigating the payment of judgement debts indicate that a whooping ¢34billion (GH¢3.4million) was paid to one Nana Emmanuel Woode for the confiscation of his companies, the institution responsible for divestiture says it knows nothing about the transaction.

Asakkua Agambire, Executive Secretary of Divestiture Implementation Committee (DIC) insisted yesterday that the DIC had nothing to do with Holex Ghana Limited and Priorities Ghana Limited which were said to have been confiscated from Nana Woode in the heat of the revolution.

According to documents, Nana Woode got judgement debts around 2006 for the confiscation of his wood processing companies and the government through the Controller and Accountant General’s Department authorized the Bank of Ghana to release ¢34,758,343,331 to the claimant.

“Holex Ghana Limited and Priorities Ghana Limited respectively have never been a subject for divestiture. We would think that at the time that the companies were confiscated in those circumstances, it is most likely they would have been handed over to the Confiscated Assets Committee located at the Castle and not to the DIC,” Mr. Agambire explained.

“The Confiscated Assets Committee is still operating with an officer at the Castle, Osu. We believe that they would be of assistance to this commission in finding out what happened to these companies,” he said, adding “as far as the DIC is concerned, they were not forwarded to us or listed for divestiture.”

He said “I have not sighted any record of such payment. The DIC definitely did not make the divestiture,” explaining that “sometimes, when payments are made in a related divestiture issues, we may be informed but we have not seen a record of this payment after a diligent search. The DIC does not know anybody called Emmanuel Nana Woode their records.”

Sole Commisioner Justice Yaw Apau of the Court of Appeal then cut in saying “on December 29, 2006, a letter for the Controller and Accountant General directed Banking Department of the Bank of Ghana to release funds for payment of outstanding judgement debt was copied to the DIC. The letter mentioned Nana Emmanuel Woode as one of the people to be paid the sum of ¢34,758,343,331 as judgement debt payment and the DIC was copied.”

Mr. Agambire replied that “We believe that they copied us because we were not of consequence. We were not directed to take any action or not to take any action but if we search the records we might find a copy of that letter.”

He added: “We were not in consequence of that letter required to do anything. We were not consulted before the decision to pay was taken. We were only informed to take note.”

Justice Apau: If you had nothing to do with Nana Woode why were you copied. Was the Controller of the view that DIC handled the confiscation of his property?

Witness: I believe so because our records show that the companies were never handed over to us. In those days when companies were confiscated, they were handed as the first step to the Confiscated Assets Committee. We did not receive confiscated assets directly and we do not know why we were copied.

He suggested to the commission to request the Confiscated Assets Committee to appear and throw more light on the issue.

Later, representatives of the Attorney General as well as the Ministry of Finance and Economic Planning who were scheduled to testify on other matters could not make an appearance.

3-MAN TEAM PROBES WORLD CUP

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By William Yaw Owusu

Saturday, July 5, 2014

PRESIDENT JOHN Dramani Mahama has empanelled a three-member committee to probe circumstances that led to Ghana’s abysmal performance at the ongoing FIFA World Cup in Brazil.

The committee, to be chaired by Justice Senyo Dzamefe of the Court of Appeal, will have Lawyer and Sports Administrator, Moses-Foh Amoaning and Sports Enthusiast, Kofi Anokye Owusu Darko, as members, and is expected to present its report within 30 days.

Unremorseful GFA

The Ghana Football Association (GFA) officials held their first news conference in Accra on Wednesday – after the Black Stars had been pushed out of the tournament by Portugal. It appeared that they were unremorseful in spite of the incidents in the camp of the Ghanaian team in Brazil, which have since reduced the country to a laughing stock in the eyes of the world.

Millions of dollars were spent on what many believe was shoddy preparation towards the tournament; and accusing fingers have been pointed at Elvis Afriyie Ankrah and Kwesi Nyantakyi, Youth and Sports Minister and President of the GFA respectively.

Terms of Reference

A statement issued in Accra and signed by Mahama Ayariga, the new Minister of Youth and Sports, indicated that the setting up of the three-man team to review Ghana’s participation was in furtherance to President Mahama’s call for a probe into the team’s performance.

The three men are expected to “inquire into matters relating to Ghana’s Black Stars team’s preparation for the tournament and possible lapses therein which might have caused their early exit from the tournament, as well as inquire into matters relating to the management of the Ghana Black Stars team and events in their camp during the tournament.”

They will also “inquire into matters relating to Ghana’s treatment of Ghanaian football fans who were sent to support the Black Stars by the Ministry of Youth and Sports; advise government on the financing of activities of the Senior National Team and other national teams; as well as inquire into all other related matters of public interest concerning the organization of Ghana’s Black Stars’ participation in the tournament.”

Mr. Ayariga reiterated government’s commitment to act on the recommendations that would come from the committee, adding, “The government believes that a forward-looking inquiry will expose lapses to engender reforms to improve the organization of Ghana’s participation in future football tournaments.”

Worst Performance

The Black Stars were eliminated from the tournament at the group stage after drawing against Germany and losing to the USA and Portugal and it became the country’s worst performance at the World Cup.

The sacked Minister, Afriyie Ankrah and the GFA officials, particularly Kwasi Nyantakyi, are being accused by critics for the incidents in Brazil.

Allegations of financial impropriety and conflict of interest in the travel arrangement of the more than 600 Ghanaian football fans that were airlifted to Brazil have been attributed to the actions of the former Sports Minister and the GFA officials.

Tour Operators

For instance, Chief Executive of Kenpong Travel & Tours, Kennedy Agyapong, in an interview with host of Peace FM’s flagship programme, “Kokrokoo”, accused Mr. Afriyie Ankrah of breaching the terms of their contract by personally taking over the company’s responsibilities for providing transportation, feeding and accommodation for the teeming Ghanaian football fans in Brazil.

According to him, after airlifting 270 passengers to on the ticket of government, the former Sports Minister arrogated to himself some organizational responsibilities regarding the sponsorship of the supporters to the World Cup.

Chief Executive Officer of African Travel & Tours, Sampson Deen, also revealed that upon reaching Brazil, Mr. Afriyie Ankrah blacklisted him and his company from any further discussions regarding the wellbeing of the supporters, hence taking over the job of Travel & Tours.

Plethora o f Complaints

The Ghanaian contingent arrived in Ghana last Sunday, with a plethora of complaints from fans that were flown to Brazil. They complained of being housed in leaking rooms infested with fleas. Some of the supporters had allegedly queued to use the toilet facility.

Ghanaian ace midfielder, Kevin Prince Boateng, described the entire organization of Ghana’s trip to the globally acclaimed tournament as ‘corrupt’.

“There are a lot of issues involving this team which Ghanaians don’t know so they say what they feel like. They (officials) are all corrupt and they always want to make money from us without working for it. I know I may not be called into the team again but I’m highly elated that I belong to the anti-corrupt group in the team (Sulley, Dede Ayew, Jordan Ayew, Kwarasey, Kwadwo Asamoah, Essien and myself),” he told a German newspaper in a no-hold-barred interview late last week.

“Everything – the hotels, the flights –was amateurish,” Kelvin Prince Boateng flared.

Appearance Fees

The situation in the Ghanaian camp eventually deteriorated when the players insisted on getting their ‘appearance fees’ paid in cash before they could play their last match against Portugal. The match ended in Ghana’s 2-1 defeat, leading to the Black Stars’ ouster from the tournament.

Each player was entitled to a US$100,000 as his ‘appearance fee’ which was supposed to have been given to the players before the tournament started.

Chartered Plane

The rancor forced the Ghanaian government to order about US$4.5 million (the government insists it was $3.5 million) to be physically airlifted on a chartered plane to Brazil.

GRA CHASES AFRICA AUTO FOR GH¢6M

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By William Yaw Owusu

Friday, July 4, 2014

The Ghana Revenue Authority (GRA) says it is initiating a court process to collect about GH¢6.1million as tax on GH¢8.3million given to Africa Automobile Limited (AAL) as judgement debt in 2010.

Acting Assistant Commissioner in Charge of Policy & Programmes, Edward Gyamerah appearing before the Commission of Enquiry investigating the payment of judgement debts yesterday said once AAL had confirmed that it had received GH¢8.3million from the government, the revenue authorities will force the company to pay tax with penalty.

AAL Services

AAL reportedly provided services as well as supplied spare parts to 17 MDAs from 1994/95 to 2010 but the government failed to pay for them and that compelled them to go to court.

Unfortunately, when AAL filed the suit against the government, the Attorney General did not contest the matter compelling the Commercial Court to enter a default judgement in favour of the claimant.

Documents available to the commission indicated that the debts owed by the government to AAL stood at GH¢145,917.76 but it ballooned to GH¢8.3million in 2010 due to compound interest on the debt.

Furthermore, in the 2006 audited report of the company, the amount owed by all AAL debtors including the Ministries, Departments and Agencies (MDAs) stood at GH¢96,823.51 but when the company sued in 2006 they claimed that the total debt owed by the MMDAs was GH¢145,917.76.

AAL Testimony

On Wednesday when Mohammed Hijaazi, Executive Chairman and Managing Director of AAL appeared before the commission, he confirmed that AAL had indeed been paid GH¢ 8.3million as judgement debt and justified the payments.

When Counsel for the commission, Dometi Kofi Sorkpor then asked Mr. Hijaazi whether he paid GH¢6.1million as tax on the GH¢ 8.3million collected as indicated by the GRA, the witness said he did not intend to pay.

“The interest was a loss that the creditor suffered at the hands of the MDAs and I would not declare that as a profit. I have not and I would not. It was a loss and not profit.”

When counsel asked him whether AAL sued for loss of business he said “No, I haven’t. In fact you have reminded me now and I am going to do that.”

“For 15 years, we have been reminding the MDAs of their contractual obligation but they did not but here I am today trying to make my claims and I am being branded a criminal,” Mr. Hijazi lamented.

GRA steps in

In the unfolding event, the GRA representative told Sole-Commissioner Justice Yaw Apau that AAL did not disclose the payment of GH¢8.3million to the commissioner of revenues and the authority detected it after they appeared before the Public Accounts Committee (PAC).

He said the interest that accumulated to GH¢8.3million was ‘income earned’, adding “we captured interest at the rate of 25% and penalty at the rate of 200% therefore the GH¢6.174million is tax liability owned.”

“The commissioner uses his discretion to impose the penalty and in this case he has put it at 200% and we will use due process to retrieve the amount.”

Ghana Refugee Board

Earlier, the Ghana Refugee Board Chairman, Ken Dzirasah testified in the case of WO1 (Rtd) Agyei Boadi who is claiming compensation for the government’s acquisition of land on which the Liberian Refugees were hosted at Buduburam in the Central region.

Mr. Dzirasah said even though the matter was filed in court in 2004, it was not until 2013 that the board received a terms f settlement document from the Attorney General for their input and he asked the AG to proceed cautiously because he had seen a judgement in 1980 in which some trustees of the same land had been given judgement by a court.

“To avoid double judgement debt, we drew the attention of the AG through the state attorney handling the case but we had unpleasant conversation on the telephone about my caution,” the experienced politician told the commission.

“The only role that the Refugee Board played in the matter was to draw the attention of the AG to the fact that there could be other possible claimants but the last time I heard I was being accused of stalling the process. It was wrong for the conclusion to be drawn that I had stalled the payment.”

“We are not in principle objecting to the payment of compensation per se. We are only asking that due diligence be observed.”

WO1 Agyei Boadi who wants compensation for the take-over farmlands and plots with buildings, the first valuation was done at GH¢119,760 and in the last was valued at GH¢92,373.

GYEEDA TRIAL ADJOURNED AGAIN

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By William Yaw Owusu

Friday, July 4, 2014

The much-touted trial of the former National Coordinator of National Youth Employment Programme (NYEP) and Philip Akpeena Assibit could not be heard yesterday because the trial judge was said to be attending a training programme.

The case had been fixed for July 3 to be continued the next day but due to Justice Afia Asare-Botwe’s absence, the prosecution and defence teams agreed on 21^st and 22^nd July as the next adjourned dates.

It was the fourth time the trial of the former coordinator of the NYEP, now known as Ghana Youth Employment and Entrepreneurial Development Agency (GYEEDA) was adjourned.

Accused persons

Incumbent Member of Parliament (MP) for Chiana-Paga, Abuga Pele and Philip Akpeena Assibit, Chief Executive Officer (CEO) of Goodwill International Group (GIG) are standing trial for the various roles they played, which the Attorney General’s Department said caused huge financial loss to the state.

Until last year, Abuga Pele was the National Coordinator of National Youth Employment Programme (NYEP), now the GYEEDA.

He is accused of wilfully causing financial loss to the state to the tune of GH¢3,330,568.53 while Assibit is being tried for defrauding the state of an amount equivalent to $1,948,626.68.

The two have pleaded not guilty and are currently on bail.

Charges                                               

The NDC MP is facing six counts of wilfully causing financial loss to the state under Section 179A (3) of the Criminal Offences Act, 1960 Act 29, two counts of abetment under Sections 20(1) and 131(1) of the Criminal Offences Act, 1960 (Act 29) and one count of intentionally misapplying public property, contrary to Section 1(2) of the Public Property Protection Act, 1977 (SMCD) 140.

Mr. Assibit, who is the first accused person on the other hand, is facing six counts of defrauding by false pretences, contrary to Section 131(1) of the Criminal and Offences Act 1960 (Act 29) and five counts of dishonestly causing loss to public property contrary to Section 2(1) of the Public Property Protection Act, 1977 (SMCD) 140. 

FIREWORKS AT JUDGEMENT DEBT HEARING

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Thursday, July 3, 2014

There were fireworks at the Commission of Enquiry investigating the payment of judgement debts when the Managing Director of Africa Automobile Limited (AAL) testified about debts owed to his company by the government for services rendered.

Documents available to the commission indicated that the debts owed by the government to AAL stood at GH¢145,917.76 but the debts ballooned to GH¢8.3million in 2010 as judgement debt due to compound interest on the debt.

Furthermore, in the 2006 audited report of the company, the amount owed by all AAL debtors including the Ministries, Departments and Agencies (MDAs) stood at GH¢96,823.51 but when the company sued in 2006 they claimed that the total debt owed by the MMDAs was GH¢145,917.76.

Unfortunately, when AAL filed the suit against the government, the Attorney General did not contest the matter compelling the Commercial Court to enter a default judgement in favour of the claimant.

Yesterday when Mohammed Hijaazi, Executive Chairman and Managing Director of AAL appeared before the commission, he confirmed that AAL had indeed been paid GH¢ 8.3million as judgement debt and justified the payments.

He said AAL provided services as well as supplied spare parts to 17 MDAs from 1994/95 to 2010 but the government failed to pay for them and that compelled them to go to court.

He said that apart from the 4% compound interest charged, the MDAs had signed an agreement that indicated that AAL reserved the right to adjust the interest, charge 5% for what he called ‘loss of opportunity’ as well as charge 1% administrative cost.

Sole Commissioner Justice Yaw Apau as a result, requested Mr. Hijaazi to provide the agreement signed by each MDA with AAL which he promised to submit.

Counsel for the commission, Dometi Kofi Sorkpor then asked Mr. Hijaazi whether he paid GH¢6.1million as tax on the GH¢ 8.3million collected as indicated by the Ghana Revenue Authority but the witness said he did not intend to pay.

“The interest was a loss that the creditor suffered at the hands of the MDAs and I would not declare that as a loss. I have not and I would not. It was a loss and not profit,” he insisted and when the commission’s counsel asked him whether AAL sued for loss of business he said “No, I haven’t. In fact you have reminded me now and I am going to do that.”

“For 15 years, we have been reminding the MDAs of their contractual obligation but they did not but here I am today trying to make my claims and I am being branded a criminal,” Mr. Hijazi lamented.

Sole Commissioner Justice Yaw Apau then told him that “nobody is imputing criminality on your part or your company,” but added that “we are only interested in how GH¢145,917.76 became GH¢8.3million…that is what we are looking for.”

Earlier, Roland Modey Acting Chief Director of Ministry of Employment and Labour Relations flanked by Paul Opoku, a lawyer at the ministry testified in the case and said the funds were lodged in the ministry’s account to pay the AAL even though, the ministry was not indebted to the company.

He said the GH¢8.3million judgement debt was astronomical and added that there should have been simple interest instead of the compound interest charged.

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 (JD).

Notable among them were payments made to CP (€94 million) and the never-ending case of GH¢51.2million parted to the self-styled National Democratic Congress (NDC) financier, Alfred Agbesi Woyome, both of which many believed were dubious and frivolous.

WE DON'T HAVE DRILL SHIP DOCUMENTS - GNPC

Posted on: www.dailyguideghana.com

By William Yaw Owusu

Tuesday, July 1, 2014

The Ghana National Petroleum Corporation (GNPC) says it does not have the court proceedings that preceded the sale of the Discoverer 511 Drill Ship.

The proceedings formed part of the processes leading to the controversial disposal of the state asset.

The sale

Ghana Government in 2001 sold the GNPC’s Drill Ship at $24million to service several debts owed by the stated-owned oil company following a series of failed agreements entered into in the 1990s.

Out of the amount received from the sale of the state asset, $19.5million was said to have been paid to Societe Generale as judgment debt secured against GNPC in a London Court in 1999.

The Drill Ship was bought by a Norwegian businessman and his wife and they changed the name to ‘Frontier Discoverer’ in Dubai, United Arab Emirates after it had been intercepted in Muscat, Oman in the gulf region.

Testimony

Adwoa Afriyie Wiafe, Principal Legal Officer at the GNPC appearing before the Commission of Enquiry investigating the payments of judgement debts told Sole-Commissioner Justice Yaw Apau of the Court of Appeal that “We don’t have in our possession, the proceedings of the case.”

She said the GNPC had made it clear at their last appearance at the commission that the Attorney General (AG) took over the case and the Corporation was no longer involved.

“We were of the opinion that perhaps the AG who was involved in the case would be the proper person to provide the proceedings but since the commission wants us to produce it we will contact the court to get them.”

Dometi Kofi Sorkpor, counsel for the commission then suggested to the GNPC representative that even though the AG represented, the GNPC was a party to the suit but the witness insisted “it was the AG who took over the case and we were not involved in the proceedings.”

“When they took over we ceased to be part of the case. We were a party at the time the AG took over. Our supervisory ministry (Ministry of Energy) informed us about the outcome of the case and we considered that as sufficient evidence of what had taken place.”

Ex-Parte Judgement

Justice Apau then cut in to say “The case was GNPC’s case and the AG wrote to dispense off the services of their lawyers and said they were going to take over the defense of the suit but they didn’t. The AG did not go to the UK.”

“They didn’t defend it that was why the judgement was ex-parte.  As an ex-parte judgement, since it affects the corporation, you have to apply for copy of the proceedings and the judgement that followed for records purposes.”

“The AG’s office at that time truncated the GNPC’s defense and counterclaim so the commission would like to know what happened in the judgment that was entered,” the judge said.

Head of Treasury Department at the Bank of Ghana, Yao Agbelenko Abalo also tendered in evidence exchange rate of the major foreign currencies from January 1991 to January 2014.

A partner of Ernst and Young, Victor Gboglah told the commission that he audited CP’s account from 2000 to 2012 and said Owusu & Fiadjoe had audited company’s account from 1991 to 1995 after which Fiadjoe & Associates did it from 1996 to 1999.