Former Deputy Minister of Finance in the Mahama government, Dr. Casiel Ato Forson, has been charged with causing financial loss of €2.37 million to the State through a single-source contract for 200 ambulances in 2012.
This charge is set to open up a slurry of similar cases both in the previous government of the National Democratic Congress (NDC) and the current ruling New Patriotic Party (NPP) which has been described as perhaps the most corrupt in using similar single-sourced contracts to enrich it, loyalists.
In criminal charges filed by the Office of the Attorney General, Dr. Forson is accused along with two others – Sylvestre Anemana who was a Chief Director at the Ministry of Health at the time of the alleged crime and businessman Richard Jakpa who is said to have used his company, Jakpa at Business, to import the alleged fake ambulance.
Altogether, 200 ambulances said to have been imported during the erstwhile Mills government are involved.
According to the facts of the case as presented by the AG, “On 22nd December 2011, Cabinet endorsed an Executive Approval for the deal. And in a joint memorandum dated 30th April 2012, the Minister for Finance, Dr. Kwabena Duffuor, and the Minister for Health, Alban S. K. Bagbin, applied for parliamentary approval for the supply of 200 ambulances for €15,800,000.00 to be paid out of a credit arrangement between Stanbic Bank Ghana Limited and the government of Ghana through the Ministry of Finance.
According to the charges, this memorandum to Parliament did not make reference to any role to be played by either Big Sea General Trading Limited (Big Sea), Dubai, UAE, or the agents for Big Sea, Jakpa at Business Limited in the transaction.
It also did not refer to the terms under which the ambulances would be procured or the terms under which the two companies would be involved in the transaction. On November 1, 2012, Parliament approved the financing agreement between the Government of Ghana and Stanbic Bank Ghana Limited for the procurement of the 200 ambulances.
By a letter dated 19th November 2012, the Chief Director at the Ministry of Health, requested approval from the Public Procurement Authority (PPA) to engage Big Sea through a process of
single-sourcing for the supply of 200 ambulances.
The letter falsely indicated that the reason for the single-sourcing was because Big Sea had arranged for funding for the project.
By an agreement dated 19th December 2012, the Government of Ghana, represented by the Ministry of Health, formally contracted with Big Sea General Trading LLC, based in Dubai, for the supply of 200 Mercedes Benz ambulances.
According to the terms of the contract, the contract was to become effective upon the signature of both parties of the contract and when all governmental and other approvals had been obtained by both parties.
The terms of delivery, as per the agreement, were that the first consignment of twenty-five (25) vehicles should be delivered within 120 days of execution of the agreement. The outstanding one hundred and seventy-five (175) vehicles were to be delivered in batches of 25 every thirty (30) days thereafter.
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 the government of Ghana’s bankers for the benefit of the Supplier.
On 7th August 2014, the 1st accused person, Cassiel A. Forson wrote to the Bank of Ghana “urgently requesting … to establish the Letters of Credit for the supply of 50 ambulances amounting to EUR3, 950,000 representing 25 percent
of the contract sum, while arrangements are being made to perfect and sign the loan agreement. … in favour of Big Sea”
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.
A consignment of 10 ambulances which was shipped from Dubai on 22nd October 2014 arrived on 16th December 2014. A post-delivery inspection of the first batch of 10 ambulances revealed that same were without any medical
equipment in them. Other fundamental defects included defects on the body of the vehicles and the patient compartment of the ambulances.
The same was brought to the attention of Big Sea in a letter dated 11th February 2015 written by the 2nd accused, Sylvester Anemana. By a reply dated 19th February 2015, Big Sea acknowledged the defects with the vehicles but indicated that they proceeded to ship the vehicles when they received the LCs on 18th August 2014.
The company also stated that the second consignment of 10 vehicles with the same defects had been shipped
51 days before the date of the letter from the ministry. The company promised to send their technicians to fix all issues relating to the defects and train Ghanaian staff before handing over the ambulances.
The third batch of 10 vehicles was shipped on 12th February 2015. By this time, the second batch had already arrived at the Tema Port. All the 30 ambulances had the same fundamental defects stated above.
A further inspection by Silver Star Auto Limited at the request of the Ministry of Health disclosed that the vehicles were not originally built as ambulances and were therefore not fit to be converted for that purpose.
A total amount of €2,370,000 was paid for the 30 vehicles. The 3rd accused person as the local representative of Big Sea, knowing that Big Sea had not shipped ambulances, still arranged with his principal to supply the purported ambulances and contracted with Big Sea to charge a commission of 28.5% on the proceeds of the supply of these vehicles purported to be ambulances to the Government of Ghana.
In a letter dated January 20, 2016, the then Minister for Health, Mr. Alex Segbefia, informed Big Sea that the vehicles did not meet ambulance specifications and were not fit for purpose.
The Minister requested for an inspection of a well-equipped ambulance vehicle that meets specifications by 20th February 2016. Following this, a team led by the CEO of the National Ambulance Service proceeded to Dubai and held an inspection on 11th February 2016. After the visit to Dubai, Big Sea undertook to send a technical team to Ghana to rectify the defects. This has not been done, hence the charges.
Meanwhile, Ato Forson has reportedly issued a statement saying he will address a press conference to explain the issue. He believes he is systematically being witch-hunted by the Akufo Addo administration for opposing “repressive policies of this government.”
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