Databank, Awoonor, EIC, and ex-SSNIT boss To Be Prosecuted?

...As Auditors recommend trial of over Obotan deal

AUDITORS, WHO revealed the rape of $2.244 million of workers’ contribution from the national pension fund in the ‘ghost’ Obotan “Garden of Eden” project in their report on the financial audit of SSNIT have recommended that Messrs. Databank Financial Services, Enterprise Insurance Company (EIC), and Awoonor Law Consultancy be prosecuted for “false presentation of information” to deceive SSNIT into the joint venture project.

Additionally, the auditors have recommended that Messrs. Charles Asare, former Director General of SSNIT and Mr Asiedu Gyamfi, ex-Acting Head of Investments should be put on trial for reckless investments of SSNIT funds and for “gross display of incompetence and blatantly subordinating SSNIT interest in the transaction to those of Databank, Awoonor Law Consultancy and Enterprise Insurance Company.”

According to the auditors, Databank, EIC and Awoonor Law Consultancy should be prosecuted for presenting false information on the Obotan project and enticing SSNIT to release money for Obotan Developers Company at a time the company did not exist and “which as at now does not have a registered office.”

The auditors also argued that the trio presented incorrect information to suggest that EIC had paid $1.8 million for its 45% shares in the ‘ghost’ company, “when in actual fact EIC as at now has not contributed 1 cent towards the project.”

They also recommended that SSNIT take over the house for the project at the cost of $1.650 million instead of the excess payment for part-ownership at the cost of $2.244 million that it paid, while EIC, Databank and Awoonor Law Consultancy should be made to refund the difference of $594,000 between the overpaid and the real amount that should have been paid, to SSNIT.

The conclusion of the auditors was that the $2.244 million paid by SSNIT was more than enough to pay for the property that was to be developed in a joint venture into a blue chip residential facility along the Independence and Osu avenues in Accra, not far from the controversial Mormon building springing up along the same area.

“In our estimation SSNIT money was collected and used to pay for the property plus allowances, commission and legal fees to so called promoters who were also members of the company (Obotan). Thereafter SSNIT was allocated just 55% shareholding and others who did not pay a dime i.e. Enterprise Insurance Company (EIC) and Social Security bank Investments (SSB) were allocated 42.5% and 2.5% respectively.”

Databank and EIC are partly owned by Mr. Ken Ofori-Atta (pictured), a key player and originator of the Obotan deal, while the other key brain behind the project that never was, Mr. Ekow Awoonor, also largely owns Awoonor Law Consultancy.

According to the auditors attempts to conduct an audit into Obotan Developers Limited was fiercely resisted by the then SSNIT Acting Head of Investments – Mr. Asiedu Gyamfi –who himself has also been recommended for prosecution.

Concord could not reach Asiedu Gyamfi by press time though efforts are still underway to get his reaction.

On his part, the former Director General of SSNIT, Mr. Charles Asare, says he has no question to answer over the Obotan deal (see his reaction in other front page story)

Mr Ken Ofori Atta, Databank’s Executive Chairman and a shareholder in EIC through a company known as Ventures and Acquisitions, has failed to talk to this reporter despite several messages at his office and confirmations by a front desk officer at Databank’s office on the 5th floor of the Pension House building in Accra that Gye Nyame Concord’s messages were delivered to him.

Mr. Ekow Awoonor told this paper he would not comment on the issue when reached on phone almost four weeks ago.

“I’ve nothing to say…” he said.

The Obotan “Garden of Eden” deal began with an undated participation memo from Databank in 1998 to Mr Charles Asare, to be followed days later by another letter from Mr. Dan Seddoh, Financial Controller of EIC inviting SSNIT to invest in the blue chip real estate project off the swanky, upmarket Independence and Osu avenues here in Accra.

In the letter titled “RE: INVITATION FOR SSNIT INVESTMENT PARTICIPATION IN INDEPENDENCE AVENUE COMMUNITY RESIDENTIAL DEVELOPMENT,” Seddoh wrote:

We would like to take this opportunity to invite SSNIT to participate in a unique real estate development project in the heart of the new business and financial district on Independence Avenue in Accra. The site is located on Independence Avenue opposite Cal Merchant Bank and on Osu Avenue opposite Taysec Gardens.

The project concept is centred around preserving and re-designing an antebellum type mansion, currently housing a Chief Executive Officer, as a well appointed and managed club house. Features of the club house will include:

Limited annual subscription;

Subscription for top CEOs and their families;

Restaurant; Swimming pool, sauna, massage, games room;

Business services: typing, telephone and fax, secretarial and courier services, etc;

Rental business offices for short-term; and Exclusive meeting and dining rooms.

There will be a constellation of 29 home units consisting of: Three executive 4-bedroom detached houses; Three two-bedroom, 1.5 storey chalets; Eleven three-bedroom two-storey town houses; and Four three-storey apartment complexes with 12 three bedroom apartments…”

Seddoh has since told the auditors, according to the Forensic Review that “EIC did not and has still not paid money for its shares” and that “he is not aware of the Bankers and bank Account of Obotan developers Company Limited.

In next Monday issue: Zero-tolerance or selective tolerance for corruption? How Obotan deal originators may have escaped prosecution over $2.244 million scandal forever while Malam Isa moves into his second year at Nsawam prisons over $45,000?

And more rot from the forensic audit, which was presented to government almost a year ago but has been kept hushed, hushed up in the corridors of power.

We also take a look at the shameful and ignorant attempt by The Statesman to defend Databank and the originators of the Obotan Garden of Eden deal and the decision by the Attorney General not to prosecute the case. Our opinion would be in reaction to The Statesman editorial of Wednesday April 16, 2003, which was itself on our front page banner story of March 31-April 6 and the denial of a denial story by SSNIT by the same newspaper.