Protracted and in-depth investigations sponsored by Anadarko Petroleum Corporation and the Government of Ghana (GoG) into alleged criminal deals including possible violation of the Foreign Corrupt Practices Act (FCPA) of the USA relative to the acquisition of a stake in Ghana’s Jubilee Oil Fields by Kosmos and the EO Group in July 2004, have hit a wall as no credible evidence of criminality and illegality was uncovered by the investigators.

Information reaching us from our sources at the Attorney-General’s Department reveals that Ghana’s Attorney-General, Betty Mould-Iddrisu, Duke Amaniampong, Baffour Assasie-Gyimah, Robert Reeves, General Counsel of Anadarko Petroleum Corporation, Luis Derrota, an Associate General Counsel at Anadarko, Martin Weinstein, a partner at Willkie Farr & Gallagher LLP (“Willkie”) and Theodore Whitehouse, another partner at “Willkie”, held a meeting at the offices of “Willkie” located at 1875 K Street, N.W., Washington D.C. on June 15, 2009.

The same sources intimated, as hinted in our Tuesday, January 12, 2010 edition, that the attendees of the meeting under reference, were informed by Mr. Reeves of Anadarko that “HIS TEAM HAD NOT, AFTER MUCH INVESTIGATIONS, FOUND ANY SPECIFIC VIOLATIONS OF THE FOREIGN CORRUPT PRACTICES ACT (FCPA)”.

Martin Weinstein, a partner at Willkie Farr & Gallagher LLP, the group ‘contracted’ by Anadarko to conduct the investigations as part of Anadarko’s due diligence exercise which pre-dates the advent of the Mills Administration, also told the meeting that “although they had found a number of ‘red flags’ with respect to the activities of Mr. George Owusu and former Ambassador Bawuah Edusie, THEY HAVE NOT FOUND A ‘SMOKING GUN’ THAT WOULD LEAD THEM TO CONCLUDE THAT THERE HAD BEEN A FCPA VIOLATION”.

Our AG Department sources further revealed that the June 15, 2009 meeting DELIBERATED ON THE FACT THAT THE WILLKIE INVESTIGATORS WERE NOT ABLE TO FIND ANY LINK BETWEEN A PROHIBITED ACT AND ANY GHANAIAN GOVERNMENTAL OFFICIAL AND/OR PARTY OFFICIAL, ADDING THAT WITHOUT SUCH A LINKAGE THERE HAD BEEN NO VIOLATIONS OF THE FCPA. IT WAS ALSO NOTED THAT THE CONCESSION WAS AWARDED PRIOR TO MR. BAWUAH-EDUSIE’S APPOINTMENT AS AN AMBASSADOR.

On January 22, 2009, Anadarko officials made contact with the US Department of Justice and told the Department that “THEY HAD FOUND NO SPECIFIC EVIDENCE OF FCPA VIOLATIONS BUT THERE WAS A LOT OF ‘SMOKE’”.

The Anadarko officials underscored that in view of their failure to detect a violation of US law, they (Anadarko) were prepared to sign the contract of development with respect to the Jubilee Oil Fields. Anadarko subsequently went ahead and signed the contract. The Willkie Team, our AG Department sources, indicated, also met with officials of Department of Justice on February 17, 2009 and provided them with more specifics and some documents but no ‘smoking gun’ to enable the Department of Justice justify a decision to probe Kosmos and the EO Group.

The sources further disclosed that in response to a question about WHETHER ANADARKO WAS AWARE THAT IN CONNECTON WITH THE ENTRY BY KOSMOS INTO THE WEST CAPE THREE POINTS PETROLEUM AGREEMENT, REPRESENTATIVES OF KOSMOS HELD MEETINGS WITH THE THEN PRESIDENT OF GHANA (J.A. KUFUOR), THEY RESPONDED THAT THEY DID NOT. THEY DID HOWEVER INTIMATE THAT “THEY UNDERSTOOD THAT KOSMOS GENERALLY HAD ACCESS TO GHANAIAN GOVERNMENT OFFICIALS”.

On whether Anadarko’s due diligence had enabled them (Anadarko) to understand why the terms of the West Cape Three Points Agreement were ‘significantly different’ from the terms of the Deepwater Tano Agreement, MR. REEVES, OUR SOURCES INDICATED, SAID HE DIDN’T THINK THE DIFFERENCES WERE DUE TO AN ILLEGAL ACTIVITY.

Mr. Reeves told Ghana’s Attorney General and those at the meeting that THE DIFFERENCES WERE PROBABLY THE RESULT OF MARKET FORCES.

Mr. Reeves also told the meeting that the EO Group made an effort to transfer their 3.5 per cent interest offshore and sought to backdate the documentation, adding that in order for the EO Group to do that successfully, they (EO Group) needed Anadarko’s consent, which Anadarko specifically did not provide. He speculated that the motivation for backdating was probably for tax purposes. Records available to The New Crusading GUIDE, show that many of the players in the Industry have done similar things. It is considered a normal practice.

THE DEPARTMENT OF JUSTICE OF THE US, ACCORDING TO OUR SOURCES AT THE AG DEPARTMENT, HAS SINCE DECLINED TO UNDERTAKE ANY SERIOUS INVESTIGATIONS INTO THE KOSMOS/EO DEAL IN VIEW OF THE ABSENCE OF ANY CREDIBLE EVIDENCE OF THE VIOLATION OF THE FCPA.

“THE DECISION OF ANADARKO TO SIGN THE CONTRACT OF DEVELOPMENT AFTER ITS OVER $2M FUNDED INVESTIGATIONS AND DUE DILIGENCE, SOUNDED THE DEATH KNELL FOR THE INVESTIGATIONS AS FAR AS ALLEGED VIOLATION OF FCPA WAS CONCERNED. NO EVIDENCE OF MONEY LAUNDERING WAS PROVIDED; NO ‘SMOKING GUN’ BUT ‘RED FLAGS’ AND THE US DEPARTMENT OF JUSTICE DOES NOT OPERATE ON SUCH WEAK, SPECULATIVE AND HALF-BAKED THEORIES”, lamented our sources at the AG’s Department.

They further disclosed that it was after the abysmal failure to find any evidence of a FCPA violation, that a former GNPC top shot in collaboration with the AG, ‘contracted’ one Duke Amaniampong, a Ghanaian Lawyer resident in the US, to embark on a “fishing expedition” which has turned out to be a “wild goose chase”.

THE ALLEGATIONS OF WILLFULLY CAUSING FINANCIAL LOSS TO THE STATE, MONEY LAUNDERING, CRIMINAL/ILLEGAL ACQUISITION OF A STAKE IN THE JUBILEE OIL FIELDS BY EITHER KOSMOS OR THE EO GROUP OR BOTH, HAVE COLLAPSED AFTER THOROUGH INVESTIGATIONS BY THE GHANA POLICE CRIMINAL INVESTIGATIONS DEPARTMENT (CID), THE SERIOUS FRAUD OFFICE (SFO) AND THE AG DEPARTMENT.

“In the wake of this pathetic fiasco, attention has now been shifted to allegations of forgery and false declarations to public agencies to the effect that Mr. George Yaw Owusu, a partner of EO Group, stands accused of allegedly forging the signatures of his co-partner, Dr. Bawuah Edusei and that of the latter’s wife, relative to the registration of the EO Group and other companies at the Registrar-General’s Department. George Owusu’s Citizenship and Nationality Status prior to the registration of the companies, are also contemplated as possible elements in the anticipated charge sheet for prosecution. What an anti-climax”, quipped our sources.

They revealed that consultations have already been held with officials of the Registrar-General’s Department on the legal implications of the alleged forgeries, the possible confiscation of the assets of the companies and whether the names of the affected companies could be struck off the Register of Companies.

"Alleged Forgery Or False Declarations To Public Agencies"

Meanwhile, The New Crusading GUIDE, has sighted an affidavit subscribed to and sworn before William W. Landrum, State of Virginia by Dr. Kwame Bawuah-Edusei, George Owusu’s partner in the EO Group to the effect that “In July 2002 the Affiant and George Yaw Owusu agreed to form a Ghanaian limited company for business purposes. At that time, the Affiant was resident in Alexandria, Virginia, USA. The Affiant authorised George Yaw Owusu to take all actions necessary or incident to properly form only one Ghanaian company to be named The EO Group Limited, INCLUDING WITHOUT LIMITATION SIGNING THE APPROPRIATE FORMATION DOCUMENTS ON BEHALF OF AFFIANT”.

The Affidavit under reference is dated July 20, 2009.

Meanwhile, a thorough tax audit of the companies; EO Group, Equiva Services and New Bridge Hospitality Service, made no adverse findings against them, disclosed our IRS sources.

Records at the disposal of The New Crusading GUIDE, clearly show that the Kosmos/EO/GNPC/GoG Petroleum Agreement of July 22, 2004 went through all the legally required processes and was in compliance with the 1992 Constitution, the Petroleum (Exploration and Production) Law, 1984 (PNDCL 84) and had the approval of the GNPC Management and Board, the Cabinet and Parliament.

All subsequent Agreements related to Kosmos and the other players in the Jubilee Oil Fields, have also had similar approvals, including some given under the Mills Administration.

“WE ALL KNOW THAT THERE IS NO ‘SMOKING GUN’ IN SPITE OF THE SO-CALLED ‘RED-FLAGS’. WE ALSO KNOW THAT NO EVIDENCE EXIST TO ENABLE GOVERNMENT TO ABROGATE THE JULY 22, 2004 PETROLEUM AGREEMENT ON BASIS OF CRIMINALITY AND ILLEGALITY. THERE IS ALSO NO EVIDENCE OF ANYBODY FRONTING FOR FORMER PRESIDENT KUFUOR OR MEMBERS OF HIS PARTY OR ADMINISTRATION. NOTHING TO RIDE ON TO COURT ON CHARGES OF WILLFULLY CAUSING FINANCIAL LOSS TO THE STATE, MONEY LAUNDERING, BRIBERY AND CORRUPTION OR VIOLATION OF OUR PETROLEUM LAWS, HENCE THE DECISION TO GO FOR ALLEGED FORGERY AND/OR FALSE DECLARATIONS TO PUBLIC AGENCIES WHICH ARE EVEN NOT THAT STRONG AND/OR CREDIBLE. A SHEER WASTE OF PRECIOUS NATIONAL TIME AND PUBLIC RESOURCES”, observed a highly-placed official of the AG’s Department who spoke to this paper on condition of strict anonymity.

Stay tuned…