From the Water Probe Report

In the procurement of 350 motorcycles for the Ghana Water Company Ltd. (GWCL), one person, Francis Yaw Dawson, defrauded the company by almost ?300 million.

The Justice N.Y.B. Adade Committee of Enquiry has therefore recommended that Dawson, who is Managing Director of Overseas Union Ltd., and his company should be made "jointly and severally liable to refund the amount."

The exact amount of money lost to GWCL from the motorbike deal was ?283, 230,000 and it represents the cost of 35 Honda cycles not delivered as agreed upon, plus interest at commercial rate prevailing at the time of payment.

Findings made by the committee are that the management of GWCL contracted Messrs Overseas Union to supply it with 350 units of "4 stroke air-coal, petrol-powered" engine Honda motorcycles complete with tools and manuals."

Even though GWCL management paid for all the 350 bikes at a total cost of ?2,792,300, Overseas Union actually supplied only 315 valued at ?2,509,070,000.

In the circumstances, the Adade Committee determine, "the cost of the remaining 35 motorcycles not delivered amounts to ?2,792,300,000 - ?2,509,070,000 which equals ?283,230,000."

The decision to import the bikes was arrived at when the former commercial director, Obeng Boateng, drew the Managing Director's attention to the need to make the revenue staff of the company mobile.

Initially it was agreed that 100 Honda bikes should be bought for them and the price quoted was ?800 million. That was in June 1998.

Then on July 20, Obeng Boateng, proposed the purchase of additional 150 to be distributed to the districts for use by the company's meter readers.

"It is significant to note that whilst the delivery of the 150 had not been completed, the new acting Commercial Director, Charles Mensah, in a memorandum dated January 12, 1999, requested for the purchase of additional 100 cycles for distribution to the remaining staff..." Waybills and other documents covering the motorbikes delivery were quite questionable, reported the committee.