Osei Adjei
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25th March, 2010
NIB Did Not Approve Rice Import — Witness
The Board of Directors of the National Investment Bank (NIB) “did not give any explicit approval” to the bank’s involvement in the importation of rice from India into the country by the government of Ghana in 2009, the Accra Fast Track High Court heard yesterday.
Godfred Agyapong of the Bureau of National Investigations (BNI), who investigated the transaction, told the court in his evidence that the former Managing Director of the bank, Daniel Charles Gyimah, only mentioned to the board on November 27, 2008 that the bank was going to receive 15,000 tonnes of rice from the government.
Led in evidence by Chief State Attorney Anthony Gyambiby as the 12th prosecution witness in the case, Mr. Agyapong said that although the board was given information on the said rice, it did not give approval for NIB to establish letters of credit for the importation of the rice from India.
On trial in the case are the former Foreign Affairs Minister, Akwasi Osei-Adjei and Charles Gyimah.
They are facing eight counts of conspiracy, contravention of provisions of the Public Procurement Act, using public office for profit, stealing and wilfully causing financial loss to the state.
Both have pleaded not guilty to the charges and have since been granted a GH¢ 200,000 bail, and made to deposit their title deeds with the court registry as part of the bail condition.
According to Mr.Agyapong who is the head of Audit at BNI, it was in May 2009 that the Director of BNI instructed him to investigate an importation of rice from India involving the Foreign Affairs Ministry and the NIB.
He said from the investigations, it came out that the rice was imported by the Ministry of Foreign Affairs with NIB as the consignee, adding that the importation of the rice did not go through the procurement process as required by the Procurement Act.
According to him, the transaction was initiated by the Ministry of Trade but the Ministry of Foreign Affairs took over the transaction.
He said the 15,000 tonnes of the 300,000 tonnes arrived in the country from India on February 18, 2010, noting that upon inspection, it came up that some of the rice was in bad state.
He said that the 15,000 tonnes was valued at 10,260,000 dollars.
Mr. Agaypong said upon the arrival of the first consignment, Mr.Osei-Adjei went to India on February 19, 2009 although he was not in government, which he said was captured by a newspaper in India called “Outlook” in its 27 July, 2009 edition.
During cross-examination by Godfred Dame, counsel for Mr.Osei-Adjei, witness said he was not aware when the rice was sold in Ghana but remembered that there was an advertisement in the dailies.
Mr. Agyapong disagreed with counsel that NIB did not pay any duty on the rice, adding that although NIB wrote to the Ministry of Finance for a waiver, that was not granted.
He said he was not aware that the cost of the rice had been paid for but said that since the letters of credit expired on July 2009, it might have been paid. He also said he was reliably informed that there was a loss after the sale of the rice.
The case has been adjourned to April 30 for continuation of cross-examination.
It is the case of the prosecution that in April 2008, Mr.Osei-Adjei made arrangements to buy 100,000 tonnes of between 25 and 35 per cent broken rice from India which was initiated by Joe Baidoo Ansah, former Minister of Trade, in February 2008.
The prosecution told the court that a letter written by Mr.Baidoo Ansah, dated February 13, 2008, said the rice was to arrive in Ghana by May 2008 to “help curb the severe increase in the price of staples in Ghana.”
According to the prosecution, Mr Osei-Adjei nominated NIB as the sole consignee and, represented by Mr. Gyimah, negotiated the terms of the contract with the State Trading Corporation of India through the Ghana High Commission in India.
The Ghana High Commissioner was instructed by Mr.Osei-Adjei to sign the contract on behalf of the government of Ghana represented by Mr.Osei-Adjei, the Commissioner himself and Mr.Gyimah.
The prosecution told the court that the contract was executed and 300,000 bags of 25 per cent broken rice was shipped by Amira Foods Limited of India, arriving in Ghana at the Tema Harbour on February 18, 2009.
Prosecution said efforts by NIB to get tax exemption from the Ministry of Finance to clear the rice were turned down owing to the commercial nature of the contract and because the ministry was not involved in the transaction.
It said a count of the consignment which is still in a custom bonded warehouse revealed a shortage of 2,997 bags while the other bags of rice are in varying state of wholesomeness, according to the prosecution.
Prosecution said the 2,997 bags of rice that short-landed were “diverted for sale elsewhere for huge private profit,” adding that the NIB is making efforts to sell the rest through a tender process.
According to the prosecution, investigations so far have revealed that the provisions of the Public Procurement Act were not followed and that it would lead evidence to establish the culpability of the accused persons.
Godfred Agyapong of the Bureau of National Investigations (BNI), who investigated the transaction, told the court in his evidence that the former Managing Director of the bank, Daniel Charles Gyimah, only mentioned to the board on November 27, 2008 that the bank was going to receive 15,000 tonnes of rice from the government.
Led in evidence by Chief State Attorney Anthony Gyambiby as the 12th prosecution witness in the case, Mr. Agyapong said that although the board was given information on the said rice, it did not give approval for NIB to establish letters of credit for the importation of the rice from India.
On trial in the case are the former Foreign Affairs Minister, Akwasi Osei-Adjei and Charles Gyimah.
They are facing eight counts of conspiracy, contravention of provisions of the Public Procurement Act, using public office for profit, stealing and wilfully causing financial loss to the state.
Both have pleaded not guilty to the charges and have since been granted a GH¢ 200,000 bail, and made to deposit their title deeds with the court registry as part of the bail condition.
According to Mr.Agyapong who is the head of Audit at BNI, it was in May 2009 that the Director of BNI instructed him to investigate an importation of rice from India involving the Foreign Affairs Ministry and the NIB.
He said from the investigations, it came out that the rice was imported by the Ministry of Foreign Affairs with NIB as the consignee, adding that the importation of the rice did not go through the procurement process as required by the Procurement Act.
According to him, the transaction was initiated by the Ministry of Trade but the Ministry of Foreign Affairs took over the transaction.
He said the 15,000 tonnes of the 300,000 tonnes arrived in the country from India on February 18, 2010, noting that upon inspection, it came up that some of the rice was in bad state.
He said that the 15,000 tonnes was valued at 10,260,000 dollars.
Mr. Agaypong said upon the arrival of the first consignment, Mr.Osei-Adjei went to India on February 19, 2009 although he was not in government, which he said was captured by a newspaper in India called “Outlook” in its 27 July, 2009 edition.
During cross-examination by Godfred Dame, counsel for Mr.Osei-Adjei, witness said he was not aware when the rice was sold in Ghana but remembered that there was an advertisement in the dailies.
Mr. Agyapong disagreed with counsel that NIB did not pay any duty on the rice, adding that although NIB wrote to the Ministry of Finance for a waiver, that was not granted.
He said he was not aware that the cost of the rice had been paid for but said that since the letters of credit expired on July 2009, it might have been paid. He also said he was reliably informed that there was a loss after the sale of the rice.
The case has been adjourned to April 30 for continuation of cross-examination.
It is the case of the prosecution that in April 2008, Mr.Osei-Adjei made arrangements to buy 100,000 tonnes of between 25 and 35 per cent broken rice from India which was initiated by Joe Baidoo Ansah, former Minister of Trade, in February 2008.
The prosecution told the court that a letter written by Mr.Baidoo Ansah, dated February 13, 2008, said the rice was to arrive in Ghana by May 2008 to “help curb the severe increase in the price of staples in Ghana.”
According to the prosecution, Mr Osei-Adjei nominated NIB as the sole consignee and, represented by Mr. Gyimah, negotiated the terms of the contract with the State Trading Corporation of India through the Ghana High Commission in India.
The Ghana High Commissioner was instructed by Mr.Osei-Adjei to sign the contract on behalf of the government of Ghana represented by Mr.Osei-Adjei, the Commissioner himself and Mr.Gyimah.
The prosecution told the court that the contract was executed and 300,000 bags of 25 per cent broken rice was shipped by Amira Foods Limited of India, arriving in Ghana at the Tema Harbour on February 18, 2009.
Prosecution said efforts by NIB to get tax exemption from the Ministry of Finance to clear the rice were turned down owing to the commercial nature of the contract and because the ministry was not involved in the transaction.
It said a count of the consignment which is still in a custom bonded warehouse revealed a shortage of 2,997 bags while the other bags of rice are in varying state of wholesomeness, according to the prosecution.
Prosecution said the 2,997 bags of rice that short-landed were “diverted for sale elsewhere for huge private profit,” adding that the NIB is making efforts to sell the rest through a tender process.
According to the prosecution, investigations so far have revealed that the provisions of the Public Procurement Act were not followed and that it would lead evidence to establish the culpability of the accused persons.
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