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General News of Monday, 21 August 2006

Source: www.africaweekmagazine.com

Ghana's cocaine test: Can Kufuor fix it?

The cocaine scandal that has rocked the Ghanaian government has surprised many observers of Ghanaian politics, including the media. The people have demanded tough action from the government to address the situation. So how will the government respond to this damaging scandal? London-based Africa Week magazine weighs the options

This is certainly not the first time that the Ghanaian government headed by John Kufuor has come under such intense pressure to resolve a problem quickly. But, this current scandal seems beyond the wildest expectations of the Kufuor led administration which was elected in late 2000 and sworn into office in January 2001.

The New Patriotic Party won re-election in 2004 for another four year mandate on the back of a growing economy and stable macro and micro economic fundamentals. However, Kufuor’s second term has not been that smooth-sailing. Familiarity, as the popular adage goes, breeds contempt, so as the people have become more used to the President’s acts and of course omissions, especially what many have described as his excessive travels abroad, his popularity has waned somewhat. What has also affected the President’s standing the most is the ongoing scandal concerning the disappearance of parcels of substances suspected to be cocaine off a ship which docked at Tema Harbour in the Greater Accra Region.

The vessel, MV Benjamin docked at the harbour on April 27. Security forces that had been tipped-off knew about the contents of the vessel and were ready to apprehend the culprits and, perhaps, prosecute them. But, what should have been a major breakthrough for the Ghanaian security forces in its fight against trade in illicit drugs in the country has rather opened a whole new chapter on the underworld in the country, their money and power, and that they may have managed to infiltrate the camp of the security forces and perhaps certain political parties as well.

The whole saga is not interesting reading. A committee which has the backing of the government has been set up, tasked with the mandate to ensure that it finds the whole truth surrounding the disappearance of the cocaine. The Georgina Woode Committee so far has had a torrid time getting its work done. Some of its key witnesses have been arrested prompting observers to cast doubt over the integrity of the committee. The reason is this: In May 2006, some of the suspects who have been arrested and were witnesses at the committee had a meeting in the house of a senior police commissioner, Assistant Commissioner of Police Kofi Boakye. Among some of the issues raised by the police commissioner were the missing 77 parcels of cocaine from the vessel that had docked on April 27. But other issues discussed between the participants at the meeting, some of which had no bearing on the missing parcels actually exposed the police commissioner in a way that might suggest that he may actually have some dealings with the suspected drugs barons even if from the evidence available from his meeting with the suspected barons, he genuinely has no knowledge of the missing parcels.

All these problems have come to a head because one of the suspects is believed to have recorded the proceedings of the meeting and had made the taped recording available to the media. What is not clear though is the motive behind someone recording the meeting in the first place, given the sensitive nature of the issues at stake, and then go on to make the recording available to the media afterwards. This motive is what ACP Boakye who is on forced leave is praying for the committee to unearth. His assertion is that the reason behind the recording of the meeting could lead investigators to those who actually stole the parcels from the ship. He is convinced that that is the most likely case. To be fair, ACP Boakye may have a point here. It is unusual that a meeting involving alleged drugs barons would be recorded and also the tape recording floated in the public domain if indeed whoever did the recording has no other ulterior motive save to expose the drugs barons.

The police have arrested the four suspected barons that were at the meeting and a fifth person whose name was also mentioned on the tape as a possible link has also been arrested. The four were arrested after giving evidence at the Woode Committee charged with investigating this affair. Their arrest is what has prompted many Ghanaians to believe that the work of the committee will be a complete whitewash since there were other names mentioned on the said tape. These other persons have not been arrested or been asked to appear before the committee.

The question many are asking is how a strong and well respected senior police commissioner like Kofi Boakye who has been a crime-stopper in the Ghanaian capital, Accra, could become embroiled with drug dealers, and, also how the government, especially President Kufuor in particular will respond to and deal with the crisis.

Speculation in the media and amongst Ghanaians is rife. It is thought that a possible motive behind the tape recording was to embarrass Kofi Boakye who is envied by many within the police force. It is not a secret that Kofi Boakye is very hard working and his cavalier lifestyle sets him apart from his brother senior police officers. He is frowned upon by some of his colleagues within the police force. ACP Boakye is a very stylish individual and his choice of serving whiskey and not beer during his conversation with the suspected drugs barons also shows a personality that is not odd as some Ghanaians would have you believe. But if indeed the idea behind the recording was to nail Kofi Boakye, then it has misfired badly because it is becoming increasingly clear that a lot of the senior officers in the police force today, even if they are absolved of any wrongdoing concerning this scandal could still lose their jobs. It is also obvious that due-process was not followed by many of the police officers, as the current cocaine scandal does not only involve the missing haul but also involves how a Venezuelan, arrested in connection with another case of cocaine importation was released from custody, and managed to flee the country.

In the case of the President, it is still not very clear how he views the whole situation. Naturally, he would be disturbed by events taking place about cocaine in the country. His first public statement on the issue has caused serious concern among civil society groups. The President chose an occasion with his party members to speak publicly about the case, but instead of taking the bull by the horns and lashing out at those who have brought the country into disrepute, he rather made reference to a former member of the opposition NDC who admits to having worked for the fugitive Venezuelan as a consultant. The widespread condemnation that followed his statement was deafening.

Uncharacteristically of him, he granted an exclusive interview few days after his outburst, and again failed to make any meaningful contribution to the debate on how to deal strongly with the situation. About his outburst, he explained that he felt “hurt” that some people want to “subvert the economy” and that despite all the hard work he has put in to ensure that Ghana’s economy develops, like the recent signing of the US$547 million Millennium Challenge Accounts in the United States, he returned home only to be hit by this growing cocaine scandal. It can be deduced from the President’s statement that he really feels saddened that the opposition may be behind the scandal. This is where the Presidents position becomes weakened. Currently, there is a member of parliament of the ruling NPP in custody in the US awaiting trial for his alleged involvement in the importation of illicit drugs into the United States. The Member of Parliament, Eric Amoateng is noted for a very ostentatious lifestyle in his home town. He is seen as a successful farmer and a philanthropist so news of his arrest was received with dismay in Ghana. Amoateng’s accomplice has erased doubts in the minds of Ghanaians, that he could be involved in the illicit trade of narcotic drugs. The President however has not made mention of Amoateng’s case in public. Initially, his silence over the issue was thought to be wise, a way to ensure that he has the right facts before wading in. But his quick condemnation and suggestion that members of the opposition who travel to South America may actually be dealing in drugs has forced the question of whether he is indeed the right person to fix this problem of illicit drug trade in Ghana.

The Way Forward

It is expected that the government will get tough on the police service and will make sweeping changes at the top to freshen up their operations. It is widely speculated also that the Inspector General of Police may himself be forced to resign or sacked to make way for the expected changes within the service. But real change must be far-reaching. There are other wider implications on the drug trade and the government’s decision to set up a financial crimes unit in the country must be hastened. Proceeds of drugs are laundered in most cases and if indeed it is true that such large quantities of cocaine are actually imported into the country either for transshipment or local consumption, then, clearly, money laundering issues must also be looked into seriously. The banks in Ghana have a KYC (Know Your Customer) policy but that is only applied when you are opening an account with them for the first time.

You will be required to submit all the necessary documentation to prove your identity but after that you can pay billions of cedis into your bank accounts and no one will question you about the source of the money. In the face of the strong stance taken by the international community against terrorist financing, this is an area that could affect the credibility of the country’s banking and financial sector negatively if not checked.

The government must enact laws and enforce them to ensure that banks are compelled to make demands on customers to disclose the source their funds. This sort of situation will not be too strange to Ghanaians some of whom are fully aware of a similar situation in countries like the UK and the US regarding handling large amounts of cash. Of course it may also be argued that in a country like Ghana there is a large informal sector and so it could be difficult implementing some of these proposals. But, the very nature of the informal sector is the problem. A large part of economic activity outside the formal sector has made it possible for the proceeds of crime to be easily laundered through the formal sector.

The President has a part to play in all this. If with all the agencies, including the Serious Fraud Office (SFO), the country is not able to tackle this cocaine problem, then the long-term effect on the country may be catastrophic. But we should also not doubt the resilience of the ruling party. After taking over a ruined economy in 2001 it has managed to sustain growth with GDP per capita for the period 2001 to 2004 averaging 5.5 per cent, and witnessing some of the best economic stability despite the growing negative effects of the global price for crude oil. It is clear that how Kufuor handles the current scandal will go a long way to define his Presidency. If he fails to deal with the situation to the satisfaction of Ghanaians, it could spell the end of his party in office come 2008 elections. This is a fact many members of the ruling party do not want to accept, but it is possible. The closeness of the 2004 elections is a reminder that the lead the NPP enjoys in Ghanaian politics is not as secure as some of their members would make you believe. For now, the impetus is on the President and how he handles the current situation will determine the future of his party in Ghanaian politics.