Police investigators probing the dubious sale of Ghana’s 20 per cent interest in the Ghana oil Palm Development Company Limited (GOPDC) by ex-Minister of Finance Dr. Anthony Akoto Osei and his two brothers, Albert Osei and D.K. Osei, have unearthed more rot in the company.

The police have discovered that aside the shares fraudulently sold to the Belgians, an additional 20 per cent shares given to workers, out-growers and small-holders at Kwae and Okumaning, in the Kwaebibirem District of the Eastern Region, has been stolen by the Belgian company, SIAT Ghana Limited, majority shareholders in the oil palm plantation.

Messrs Pierre Vandebeeck, J.C.E Inkumsah, Felix Ntrakwah and any other director of the company found to have assisted in the fraudulent transaction, according to the police investigators, should be prosecuted by the Attorney-General and Minister of Justice, for orchestrating the fraudulent acquisition of the 20 per cent shares at a discounted rate, a concession only extended to workers and out-growers.

Meanwhile, The Herald has learned that workers and out-growers of the GOPDC at Kwae and Okumaning last week staged a massive demonstration against the management of the company. They are up in arms against the management for paying them low salaries and non-payment of their SSNIT contributions.

The investigators, in their report handed over to the Attorney- General, have asked the government of Ghana to take back the 20 per cent shares, whilst the huge dividend which accrued to the shares between 1996 to 1999, amounting to cedi ¢4.7 billion, should be paid to the state by the Belgian with interest.

Additionally, dividend amounting to cedi 3.614 billion which accrued on the same 20% shares between 2000 to 2003 must be paid back to the state with interest by officials of SIAT sa led by Mr. Pierre Vandebeeck, because “this company fraudulently used all types of pretext to acquire the shares”.

The police investigators directed the government to appropriately re-value the 20% shares before offering it for sale, adding that ¢8 billion ($1,686,856) originally paid to the Divestiture Implementation Committee (DIC) must be cancelled and the new offer price paid to GOPDC.

“GOG should consider giving back the 20% shares to the four District Assemblies in the Kwae/Okumaning areas where revenue that would be earned from dividend paid could be used to develop the locality”, the police said.

The facts of the matter are that Government of Ghana agreed in 1995 to off-load 20% of its shares to small-holders, out-growers (15%) and employees of GOPDC (5%).

The 20% shares was valued at a discounted amount of ¢2,078,858,800 (i.e. $1,186,431) Deductions from the out-growers/small-holders and workers to pay for the 20 per cent shares started in April 1996

GOPDC raised 2,078,858,800 cedis as a loan on behalf of the small-holders/out-growers and workers, to pay for the 20 per cent shares, but did not pay the amount to the DIC

Records show that the SIAT nominated management of GOPDC which invested the loan amount of ¢2,078,858,800 in a Fixed Deposit account with the Social Security Bank in May 1996 in favour of SIAT Ghana Limited. In May 1997, the GOPDC management transferred the “loan” amount and interest thereon into another Fixed Deposit account with the Trust Bank Ltd

By December 13, 1999, the principal plus interest yielded¢4,977,867,956.83. This was transferred by SIAT into GOPDC’s account with The Trust Bank. On December 16, 1999, ¢4,700,000,000 was transferred into Trust Gold Account out of which ¢4,115,694,334 was transferred to the foreign account of SIAT sa.

Despite this, the SIAT management of GOPDC continued the deductions from the out-growers/small-holders and workers up to the end of 1999. Dividends accruing from the 20% shares totaling ¢4,130,000,000 ($1,500,872) in 1999 were held on by the management of GOPDC

For non-payment of the first discounted amount of ¢2,078,858,800 to DIC by GOPDC, the DIC in March 2000 recomputed the 20% shares value to ¢8.0 billion ($1,686,856) when GOPDC’s management expressed the Workers/Out-growers interest to acquire the shares

The employees and farmers refused to accept the re-computation of value, as they had fully paid the old value and therefore, demanded a refund of all deductions totaling cedi 2.08 billion made by the company.

It is noted that by 1999 the total of the Fixed Deposit plus the accrued Dividend could have been used to pay for the shares on behalf of the workers and out-growers if that had been the intention of management instead of raising a new loan amount of cedi 8 billion (1,686,856).

However, by May 2000, the SIAT management of GOPDC went ahead to pay DIC the cedi 8.0 billion ($1,686,856) ostensibly on behalf of the workers and out-growers/small-holders

Strangely, even though the cedi 8 billion ($1,686,856)was paid in May, 2000 by GOPDC, the DIC entered into a Share Sale Purchase agreement with some executives of the Out-growers/Workers in June 2000 even though the main body of out-growers/small-holders and workers had withdrawn from the deal in March 2000

It is noted that the payment of the cedi 8.0 billion ($1,686,856) to DIC was made by GOPDC (in which Government of Ghana was having shares) and not SIAT Ghana Limited. The amount was, however, debited to SIAT Ghana Limited, meaning shareholders of GOPDC paid the amount on behalf of SIAT Ghana Limited.

To legitimize the transaction, SIAT Ghana Limited was portrayed as was holding the 20% shares in trust for the out-growers/employees. For SIAT Ghana Limited to pay back GOPDC for the cedi 8.0 billion, the management first used the dividend which clearly was due Government of Ghana on the 20% shares earned between 1996 to 1999 totaling cedi 4,125,600,000.

Later, dividend totaling cedi 3,947,400,000 due to SIAT sa was used to set off the 8 billion cedis ($1,686,856) loan amount. Technically therefore, neither SIAT Gh. Ltd nor the employees and out-growers and Small-holders have paid for the 20 per cent shares.