Gov't Appointee in Fishy Deal

The die is cast. Red flags have been hoisted on his properties. The man facing the music is Nana Asare Kodie, a government appointee in charge of Private Enterprise Foundation (PEF), who has been slapped with a $1 million ruling for fraudulent conversion.

Nine years ago he entered into a contract to carry 1782.30 tonnes of fish from Mauritania to Tema, Abidjan and Lagos valued $783, 408. 80. After nine years, Nana Kodie's ship has still not docked at the port of Abidjan or Lagos to discharge the fish to the owners.

The ship did not sink and the Captain is alive.

The 1782.30 tonnes of fish has been in transit at Tema harbour for nine years. Evidence points to the fact that the fish has been sold.

Intelligence reports from Mauritania indicate that the conduct of Nana Kodie, who is Managing Director of Kiku Company Ltd., has cost Ghana its fishing ground in Mauritania.

The fish trade between the two countries has also been jeopardised.

According to Mauritanian officials, it took the personal intervention of ex- President Jerry John Rawlings to secure Ghana a fishing ground in Mauritania, a poor country blessed with abundant mackerel and other assorted fish.

Some years back, a Mauritanian government delegation followed ex-President Rawlings to Cairo, Egypt, where he was attending an OAU summit to protest against the conduct of Nana Kodie.

The Supreme Court has dismissed his appeal for stay of execution. Red flags have already been hoisted on his properties the lawyers may soon begin selling his properties to defray the cost of the fish.

It began on May 31, 1993. Societe De Promotion La Peche (SPP), a Mauritanian fishing company contracted Kiku Company Ltd owned by Nana Kodie to transport 1782.30 tonnes of fish from Mauritania to Tema, Abidjan and Lagos.

By agreement, the Captain of Hilda A, one Kwasi Acqua, agreed to transport and discharge 1782.30 tonnes of fish whose total value was $783,408,80.

Mr Kwasi Acqua, also swore an affidavit attesting to the conditions of carriage of the fish, saying, " I accept to transport the said cargo to its destinations vis-ABIDJAN (impromer)-- 005.27 tonnes, LAGOS (International Processing Company IPCO)-- 370.86 tonnes and Tema (Kiku Co. Ltd)-- 406 tonnes.

I confirm that my company, Kiku Co. Ltd., is transporting the said cargo at the rate of $70 per tone up to the ports of destinations" But contrary to the agreement and the Bill of Lading, Captain Kwasi Acqua, acting on the instructions of Nana Kodie, sailed directly to Tema with the entire consignment and discharged it.

The reason given to this "breach of contract and act of bad faith" was that the fish had been seized to make for payment of the supply of gas oil to SPP pursuant to an earlier agreement with IPCO, a Nigerian based company.

According to Mr. Ahmed Owndelhadu, Director of SPP, he travelled to Abidjan after dispatching the vessel and waited for eight days without receiving the consignment.

Mr. Owndelhadu said he contacted IPCO in Nigeria and after unsuccessful attempts at getting Nana Kodie by phone he rushed to Accra only to meet them discharging the fish.

"I went to the harbour to look for 'Hilda A.' I saw the ship and it was being offloaded. I spoke to the captain and asked him why he did not come to Abidjan. He told me that it was the owner of the ship that asked him to discharge the fish at Tema," Owndelhadu said.

The SPP director continued that Captain Acqua asked him to direct all his questions as to why they were discharging to Nana Kodie, on whose orders the fish was being offloaded.

Mr. Owndelhadu said when he bumped into Kiku's office at the harbour, he met Mrs. Hilda Akushika, the wife of Nana Kodie. The ship in question was named after her.

Mrs. Akushika gave him Nana's address but when the SPP director went to his house, he was made to sit in the sitting room for two hours without being attended to.

At the end, he left without seeing Nana Kodie. That was the last straw, Mr Owndelhadu walked straight into the office of his lawyers who filed a suit for fraudulent conversion against the man who is in charge of private business in this country.

THE HIGH-MISCARRIAGE OF JUSTICE

The Mauritanians fired a writ at an Accra High Court seeking among other reliefs: "

1) A declaration that the discharge of fish in Tema consigned to parties in Abidjan and Lagos is wrongful.

2) An order upon Kiku Co. Ltd to deliver the fish consigned to parties in Abidjan and Lagos.

3) In the alternative, an order upon Kiku Co. Ltd to release the said fish to SPP subject to cost of freight to the respective destinations of Abidjan and Lagos"

After many years of legal tussling, the presiding Judge at the High Court, Justice B. T. Aryeetey, dismissed their claims on the grounds that a barter agreement existed between IPCO who was supplying oil to SPP.

By the agreement, IPCO was supplying gas oil to SPP and was taking fish as payment for the oil. Kiku Co. Ltd, was also carrying both fish and oil on behalf IPCO and took fish as payment for services rendered to IPCo.

Kiku Co. Ltd insisted that IPCO owed them some money so they seized the fish to pay for the debt of IPCO.

Giving the ruling, Justice B. T. Aryeetey said, "The opinion of the court is that the three bills of lading do not evidence a new agreement independent of the existing barter agreement. The basis of the plaintiff's case, therefore, is completely eroded."

The High Court judge said, it was the view of the court that the consideration of respective rights of the parties could meaningfully be pursued if the contractual relationship, brought into existence by the activities of IPCO who acted as a common agent for the two parties.

IN THE APPEAL COURT

January 19, 1996, SPP appealed against the decision of the High Court saying that judgement was against the weight of evidence. They said the relief sought under the appeal was the judgement of the High Court be set aside and judgement entered in favour of SPP.

According to counsel for SPP, the High Court Judge erred in law in introducing extraneous matter into a contract for the delivery of fish evidenced by the Bills of Lading.

Counsel also argued that by holding that SPP were the undisclosed principals of IPCO when there was no evidence to that effect, the judge, Justice Aryeetey erred in law.

"The Judge erred in law in refusing to uphold the consignors ownership in the goods. The judge erred in law in declaring the defendant as owners of goods consigned by Bills of Lading to specific consignees when no Bill of Lading was produced," Counsel said.

The Appeal Court in a majority decision overturned the ruling of the High Court and ruled in favour of SPP.

SUPREME COURT

Kiku Co. Ltd is also dissatisfied and has referred the case to the Supreme but is asking for stay of execution, meaning that the ruling of the Appeal Court stands.

Meanwhile, Chronicle Intelligence has spotted letters from Nana Asare Kodie arranging to settle the issue with SPP.

This is the second time he has tried to settle the case out of court.