Former Ghana National Petroleum Corporation (GNPC) boss, Alex Mould, has told an Accra High Court he has so far not seen any document showing that Minority Leader, Dr Cassiel Ato Forson, was authorised by the Finance Minister to write two letters.
One of the letters was asking the Bank of Ghana to establish letters of credit in favour of Big Sea Trading Company, the company tasked to supply ambulances to the state.
The other was to the Controller and Accountant General authorising the release of more than ¢800,000 to the Minister for Health to enable him to pay the bank charges covering the establishment of Letters of Credit (LCs) for the supply of 50 Mercedes Benz Ambulances and Related Services.
Mr Mould on Thursday, June 29 mounted the witness box to testify on behalf of the Minority Leader who is accused of causing a €2 million financial loss to the state.
The state’s case against the Leader Centers mainly around these letters.
Attorney General Godfred Yeboah Dame contends that the actions of Dr Forson were contrary to the terms of the agreement governing the ambulance purchase.
“By the terms of the agreement, advance payment was prohibited. Also, payment for the purchase price of €15,800,000.00 was to be by “raising an irrevocable and transferable Letter of Credit” from Government of Ghana’s bankers for the benefit of the Supplier.
“Upon delivery of every 50 ambulances, 25% of the purchase price was to be paid through confirmed letters of credit (LC) on sight of goods opened in favour of the supplier, upon submission of a number of documents specified in the agreement.
“He further directed that the LCs should be charged to the budget of the Ministry of Health contrary to the Parliamentary approval on the funding for the supply of the ambulances.” The AG had earlier told the court.
Mr Mould during his testimony told the court that Deputy Ministers tend to write letters on behalf of their Ministers.
“I therefore find it odd that A1 (Ato Forson) who in his capacity as deputy minister, assisted the minister and who wielded neither constitutional nor statutory powers could be held responsible where none of the persons in copy including the minister have denied what he signed.”
“Based on the above, and in the light of experience. It is my candid view that it is fallacious for the republic to allege that A1 authorised letters of credit out of which payment amounting to €2 million were made to big sea without due course and authorisation.” He stated.
The AG Godfred Yeboah Dame however probed the matter further.
AG: “You realise that after the first accused signed exhibit A, he proceeded to sign exhibit B2 dated 12th August addressed to the controller and accountant general.”
Mr Mould: “Yes he did.”
AG: “Now you see that, the first accused referred to his own earlier letter, is that not correct?”
Mr Mould: “Yes, he referred to the Ministry of Finance letter”
AG: “Do you see any attachments?”
Answer: “No”
Ag: “Did you come by any information or document showing authorisation by the minister?”
Mr Mould: “No my lady, not in this instance.”
Mr Mould insisted the letters cannot form a basis for a charge of causing financial loss to the state.
“Any claim that exhibit A has resulted in causing financial loss to the republic is not only wrong but demonstrates a misunderstanding of an LC. I say in an LC transaction, it is an LC applicant and paying bank who authorise payment.”
The AG however insisted that under the agreement, the LC was to the means by which payment was made. Mr. Mould agreed.
AG: You agree that the letters of credit are the means by which payment was made for the transaction in issue”
Mr. Mould” Yes my lady. It is the means by which payment will be made on behalf of the applicant to the beneficiary”
The AG will continue with the cross-examination of Mr Mould on July 6.