How ¢7billion was Dished Out To Phony Company

WHY PETER BOACHIE WAS FIRED AS PMMC BOSS

THE cloak of secrecy and controversy surrounding the dismissal of Mr. Peter Boachie as the Managing Director (MD) of the Precious Mineral Marketing Company (PMMC) Ltd by the government in August 2006, has been unveiled. Mr. Boachie was appointed as the Managing Director of the PMMC by the NPP's administration in 2001.

However in August 24, 2006, the Board of Directors of the company acting with the consent of government terminated his appointment. This was when some fraudulent activities which nearly crippled the survival of the Precious Mineral Company was uncovered, THE SUN has learnt.

The paper's highly placed sources indicate that, Mr. Boachie's predicament started when as a result of financial crisis in the company the board’s sub-committee on Finance, decided to delve into the records of the company to arrest the situation in 2006.

After intensive investigations, it was discovered that the then M.D. Boachie and his predecessor R. D. Damptey in December 21, 2000 secretly entered into an agreement with Sian Goldfields Ltd, and doled out $550,000 (approximately ¢7.7 billion) under the guise of advance payment to the company for the purchase of 3,000 ounces of gold.

Interestingly as at the time of his dismissal and till late Friday when this reporter was filing the story, Sian Goldfields was yet to supply the said gold to PMMC.

THE SUN learnt that the loan was also granted without risk covered or proper collateral.

More seriously, after his appointment as the MD of the company Mr. Boachie who together with his predecessor executed the deal, kept the transaction to himself as a closely guided secret.

He refused to disclose the deal to any of the board members. Not even the immediate past board chairman, Mr.Stephen Adubofour who used to be his colleague in the company some years back, got wind of it.

Apart from the $550,000, another burning issue that came up during the investigations was how Mr.Boachie dubiously sold the PMMC's house at Dansoman, without due process. It also emerged that an advertisement for the sale of the house was placed in the Daily Graphic seven days after he collected the payment for the house.

None of the officials of the company was prepared to speak to THE SUN or go on record when reached on Friday for comment.

Mr. Boachie refused to speak to the issue when it first popped up over a year ago.

THE SUN learnt that on December 22, 2000 when the nation was feverishly preparing for the election run-up, PMMC advanced $250,000 to Sian Goldfields as first installment of the $550,000 loan facility for the mining company. A month later on January 31, 2001, $300,000 being the last installment was released to Sian Goldfields.

Under the terms of the agreement, Sian Goldfields Ltd was to sell all its gold production to PMMC for the repayment. The first sale of about 1000 ounces of gold was to commence on February 28, 2001, a month after the release of the $300,000 to the mining company.

Again, under the agreement the mining company was to sell the gold to PMMC at a fixed price at 10% below the London Metal Exchange fixing on the day of delivery.

Also it was agreed that, PMMC was to attach one staff to the mining company to ensure transparency in the delivery of the gold towards repayment. THE SUN gathered that the repayment was to last for 12 months with the expiration date fixed for February 28, 2002.

However for six years now not a single gold ounce has been delivered by the mining company. The paper gathered that all efforts by the Board including a court judgment obtained in August ,2006 to get Sian Goldfields to repay the debt, has all hit the rock. However THE SUN can report that Boachie is seriously lobbying all over official corridors drumming home on top of his voice that he was victimized on account of his political leanings.