SFO Wades Into Databank

Akufo Addo under pressure to halt probe and trial
SSNIT determined to save taxpayers' money

As the wheels of justice turn, Databank, one of the premier stockbroking investment vehicles, caught after a string of eye popping deals, has had visits from the Serious Fraud Office(SFO), following reports recommending their prosecution for at least one deal in which they were less than careful.

Early this year, Chronicle reported that a team of auditors had uncovered a scam dressed up as a neat legitimate deal that fleeced the Ghanaian taxpayer and SSNIT contributors of sums in the region of ?16 billion.

Now the wheel of justice has come full swing and the Serious Fraud Office, following the auditors' recommendation that the guilty parties in what was called, 'The Obotan Garden of Eden Fraud affair' has moved in to take action, as the report distinctly cited Enterprise Insurance Company and Databank, owned by Messrs Ken Ofori-Atta and Kelly Gadzekpo.

Chronicle has gathered that the overall boss of the SFO who, by the constitution, chairs the Board of SFO and recommends all legal actions against any party, is being lobbied to drop the case and go for a settlement.

The Top management of SSNIT is also being plied to drop the case and allow cash settlement.

The Chief Executive of the guilty party, Mr.Ken Ofori-Atta, is the nephew of the overall boss of the SFO, Nana Akufo-Addo, the MP for Abuakwa and Attorney General.

"If Kwesi Osei or Nana does anything improper, I will leak it to you and inform the President. We have done too much work on this and we cannot allow rich people to have different sets of rules.

The NDC will make capital out of this all cases involving them including the Quality Grain which Theo investigated will have to be thrown away..," promised an inside source. Readers will recall that Chronicle published a story citing the auditors report in the Obotan Garden of fraud.

EKOW AWOONOR

One of the parties whose name came up during the investigations was the controversial Ekow Awoonor, shadow counsel for Mrs. Rawlings. At the time, he protested furiously against the auditors, claiming that he had not been contacted by the auditors.

He spoke to Chronicle in follow-up interviews on the matter and advised Messrs Ofori-Atta and Kelly Gadzekpo of Databank/Enterprise Insurance to speak up to the Chronicle because he, as their lawyer, had made it known that he had nothing to hide.

The pair declined after a few attempts to get them to tell their side of the story, as they were cited to be the main architects of the fraud.

Mrs. Stephanie Baeta Ansah, Managing Director of Home Finance Company, originally mentioned by SSNIT as having considered to come in with Enterprise Insurance, was so miffed with the connection of HFC name to the controversy surrounding the fraud that she successfully appealed to the National Media Commission and extracted an apology from Chronicle.

The paper carried a headline that tangentially mentioned the HFC brand name in the prosecution of the fraud by Databank, which wads directly mentioned as the fraudulent party.

SSB THOMPSON AND SSB SALE

The Managing Director of SSB Bank responded to Chronicle inquiries on the affair and urged Databank to respond. More than two weeks and days after the agreed deadline, nothing was heard from Databank.

SSB Bank has both Ekow Awoonor and Ken Ofori-Atta on their Board, yet gave the contract to sell Government shares (through SSNIT) to Databank to sell, in an obvious conflict of interest situation. Awoonor represents Databank(legal) and Ken, obviously, has access material inside information as head of strategies.

The sale of the SSB shares, who bought the shares, who paid for it, whether Databank collected fees from SSB and also fees from the Irish Group who are purported to have purchased it, plus the whereabouts of the actual cash, the interest that may have accrued are all issues that the SFO is investigating, with Chronicle also monitoring.

It would be recalled that less than three years ago, Databank presented themselves to SSNIT as financial advisers to Enterprise Insurance and promoted an investment package of a string of 29 bungalows for top- notch Chief Executives to purchase along the independence avenue. The property is near the British High Commission.

In documentation circulated among the prospective investors, SSNIT then headed by Mr. Charles Asare was informed that the Garden of Eden project would have Enterprise Insurance Company (EIC), Home Finance Company (HFC) and SSB as partners.

Documentation exists that presents EIC as 42.5 per cent shareholders (coming in with $1.7 million in paper), SSB with 2.5 per cent shares and SSNIT's shareholding as 55 per cent.

Databank actually owns more than 54 per cent of EIC through a vehicle set up by Ofori-Atta called Ventures and Acquisitions Ltd. Evidence also exists that indicates that within 24 hours of Mr. Ken Ofori-Atta asking SSNIT to pay up for their shares in cash for the housing project, a cheque for $2 million was dispatched to him by the then Director General, Mr. Charles Asare.

Mr. Ofori Atta's letter requisitioning the SSNIT boss to part with money was dated February 10, 1998. Mr. Ofori Atta and his group sat on the money as at last Tuesday no construction had started.

The former Acting Director General, Mr. Eric Adjei, drew attention to the matter last year and eventually caught the attention of Databank /Enterprise bosses who promptly offered to refund the $2 million they were sitting on.

But SSNIT declined, arguing that it was a matter that needed to be dealt with legally - attempting to commit fraud and committing it and going on to cause financial loss to the state.

SECURITIES REGULATORY COMMISSION

Recently, the hitherto dormant Securities Regulatory Commission moved to instill discipline into the capital markets and issued a directive that affected all those who are directors of Boards and also trade in shares of these companies.

Mr. Ofori-Atta was on the Board of HFC, as well, just about when the Obotan fraud was being perpetrated. Databank still holds ownership of the disputed land and the three bungalows on them.

Further inquiries by the auditors showed that they actually paid $1.6 million for the property, and told their 'investors' that they paid $3.5.

The auditors question the sale price as records show that land registry records indicate that there was a massive under-declaration with serious tax implications.

An amount of ?360 million is what the findings present, but Chronicle surveillance shows that the actual man who fixed the deal with Messrs Ofori-Atta and Kelly Gadzepo, former Managing Director of the French owned CFAO is now out of the jurisdiction as ex-workers of CFAO interviewed by the Chronicle recall the transaction with Mr. Angland.

Controversial Awoonor gave a breakdown of the expense accounts when he was roped in at the last minute by Messrs Ofori-Atta and Keli Gadzekpo. Estate agency fee - $120,000.00, Legal fees -f $30,000, Brokerage fees - $224,000 paid to Databank.

Electricity bills, even after completion of the purchase of the property, were being forwarded to SSNIT to pay.