Accra, July 7, GNA - Ms Pauline Odarkor Lamptey, Deputy Manager of National Investment Bank (NIB), on Wednesday, told an Accra Fast Track High Court that she did not know whether the financial entity approved the importation of rice from India.

She said according to the bank's regulations, transactions above 10 million dollars had to be approved by the Management.

Ms Lamptey was giving evidence at the trial of Akwasi Osei-Adjei, ex-Minister of Foreign Affairs and Regional Integration and Daniel Charles Gyimah, Former NIB boss in connection with the importation of 15,000 metric tonnes (300,000 bags) of rice imported from India.

Led in evidence by Mr Anthony Gyambiby, Chief State Attorney, witness said she had worked with the bank for the past 16 years and knew Gyimah as Former NIB boss.

She said sometime in 2008, Mr Owusu Tweneboah, Deputy Managing Director of NIB instructed her to prepare a Letter of Credit (LC)for the Ministry of Foreign Affairs to enable them import rice from State Trading Corporation of India.

Witness said the LC prepared on October 28, 2008 was expected to expire on April 10, 2009 and deferred payment for the importation of rice.

Ms Lamptey explained that the additional conditions under the LC were the terms of the transactions that had to be met by the Ministry of Foreign Affairs.

However, when asked by Colonel Alex Johnson (Rtd), Counsel for Gyimah whether the transaction for the importation of the rice was approved by the management, she said did not see witness any approval.

Witness said she would not know whether the bank had been re-reimbursed for the transaction that it undertook for the Ministry of Foreign Affairs. The facts are that sometime in February 2008, Former Minister of Trade and Industry, Mr Joe Baidoo-Ansah initiated the importation of rice from India.

In a letter dated February 13, 2008, he requested the Government of Ghana through the Indian High Commission in Ghana, to buy 100,000 metric tonnes of (25 per cent to 35 per cent broken rice).

The rice was expected to arrive in Ghana by May 2008 "to help curb the severe increase of price of staples in Ghana" and the designated consignee was the Ghana National Procurement Agency (GNPA).

Mr Baidoo-Ansah in another letter dated April 10, 2008 addressed to the Minister of External Affairs of India, referred to an earlier meeting between ex-President John Agyekum Kufuor and the Indian Minister of Commerce.

In the said letter Mr Baidoo-Ansah drew attention to "severe food situation looming in Ghana" and sought to procure from the Government of India 300,000 metric tonnes of low grade white 25 per cent broken rice for shipment to Ghana by June 2008.

However, in April 2008, Osei-Adjei took over the efforts of Mr Baidoo-Ansah and nominated NIB as the sole consignee.

Gyimah represented NIB and negotiated terms of the contract with State Trading Corporation of India through Ghana High Commission in India. Osei-Adjei instructed the Ghana High Commissioner in India to sign the contract on behalf of the Government of Ghana.

The contract was executed and 15,000 metric tonnes of rice was shipped by Amira Foods Limited of India, a private shipping company.

On February 18, 2009, the consignment arrived at the Tema Harbour.

Initially, exportation of the rice to Ghana was supposed to be a grant but later turned into commercial transaction, and Gyimah approached Citibank to issue Letters of Credit to cover the value of the consignment.

On arrival of the rice, efforts by management of NIB to acquire import tax exemption from Ministry of Finance and Economic Planning (MOFEP) to clear the rice were turned down, owing to the commercial nature of the contract and in addition, MOFEP was not involved in the transaction. The consignment was kept in Customs Excise and Preventive Service bonded warehouse.

However, after counting the consignment, 2,997 bags were found missing and the remaining were in varying stages of unwholesomeness. Prosecution said management of NIB was making efforts to sell the rice through tender.

It said investigations conducted by the Bureau of National Investigations revealed that provisions of the Public Procurement Act were not followed and the missing 2,997 bags had been diverted for sale elsewhere for huge private profit.

The case has been adjourned to July 14.