Missing docket uncovered at AG's office

THE controversy between the Bureau of National Investigations (BNI) and the Attorney-General’s Department (AG) over the "missing" docket on Nicholas Sakyi, an accountant of the Department of Urban Roads, Kumasi, and one other person who have been charged with the embezzlement of a total of ¢4.3 billion, has been resolved.

Joe Ghartey, the Attorney General, yesterday admitted before the Public Accounts Committee (PAC) that the docket has been found. It had been with the Attorney General’s Department since September, 2006, he said.

The A-G had on Tuesday told the PAC that the docket on the case was not with his outfit and supported his assertion with documents.

He apologised profusely to the BNI and cited misinformation and lack of proper record-keeping on the part of his department as the reason for the misunderstanding.

Mr Ghartey assured the PAC that he will take over the prosecution of the case from the police, because of its serious nature.

He said the case was sent to court on October 18 and has been adjourned to November 30.

The drama unfolded after the chairman of PAC, Mr Samuel Sallas Mensah, announced that he had received a confidential letter from the BNI on Wednesday refuting claims by Joe Ghartey to the PAC, that the docket was with the BNI. The chairman said because of its confidential nature and the security implications, no copy of the letter would be made available to anyone until PAC has submitted its report and held discussions on the floor of the house.

Mr Sallas Mensah, however, read the concluding parts of the confidential letter which said .. "the docket is still with the Attorney-General’s Department."

The AG who was present then stood up and told the PAC that "what we said earlier to PAC, was an incorrect state of affairs. We apologise to the BNI."

Nicholas Sakyi allegedly embezzled ¢3.1 billion between January 2002 and August 2005 when 51 cheques issued in favour of the Internal Revenue Service (IRS) as withholding taxes were altered and cashed by him..

Sakyi allegedly altered the cheques to read I.R. Samuel and Sons Limited, J.R. Service Limited, and cashed the money at the Atwima-Mponua Rural Bank and kept it.

The matter came to light when the PAC threw the search light on the Ministry of Transportation at its on-going public sitting.

According to the 2004 and 2005 Auditor-General’s Report on ministries, departments and agencies, verification of the bank statement confirmed that the cheques were cashed in the name of the above-named companies.

A.E. Kaati, chief accountant at the Takoradi branch of the Department of Urban Roads also diverted ¢1.2 billion withholding tax into private accounts.

The controversy over the "missing" dockets started after a reply to an enquiry by PAC to the BNI said the dockets on the two accused persons were with the Attorney-General’s Department.

The PAC, therefore, summoned the AG to appear before it and explain the delay in the prosecution of the case.

The AG appeared before PAC on Tuesday and told the committee with supporting documents that, the docket is still with the BNI.

The BNI also wrote another confidential letter to the chairman of PAC on Wednesday insisting that, the docket is with the AG.

Mr Sallas-Mensah and other members of PAC took turns to congratulate Joe Ghartey for his boldness and truthfulness leading to the resolution of the paradox.

They urged him to endeavour to update record keeping in the AG’s department to forestall future occurrence of the problem

In another development, the PAC queried the Ministry of Food and Agriculture (MOFA) as to why in 2004, it wrongfully paid ¢60.7 million in unearned salaries to eight of their staff who have either vacated their post or retired.

At MOFA’s Crop Services Directorate for example, Francis Ofori a retiree was paid ¢14.2 million between June and December, 2004, while three others, Felicia Senaya, Samuel Dadzie and John Arko, who vacated their posts, were paid ¢689,000 in June 2002, ¢4.1 million in November-December 2004, and ¢1.2million in June-August, 2004, respectively.

This came to light when the Ministry took its turn at the ongoing public sitting of the PAC.

At their Dunkwa-on-Offin District office, Ernest Attah was paid ¢17.9 million, Peter Asante ¢9.1 million, and Stephen Kodua ¢10.1 million.

Stephen Kusorgbor, an accounts assistant at Juaso District of MOFA had vacated his post in November 2004 but his name was retained on the Payroll until October 2005 and was paid unearned salaries totaling ¢7.7 million.

He was said to have withdrawn ¢3.1 million before the balance of ¢4.6 million was paid back to government chest.

The PAC also sought to find out why MOFA paid ¢52.6 million to the Ghana Advertising and Marketing Ltd., in February 2002, to place 14 full-page advertisements in the Daily Graphic and the Ghanaian Times but only eight insertions were made.

An audit report recommended to MOFA to retrieve the sum of ¢17.5 million from the company being the cost of the six insertions it did not make.

At its Axim District office, a ¢130 million contract was awarded to M/S Sambecky contract works to construct slaughter slabs at Anyinase and Esiama, without subjecting the contract to competitive bidding, contrary to section 43(1) of the Public Procurement Act. 2003 (Act 663).

The Sekondi regional office of MOFA could also not account for ¢559 million being the cost of 221 Yamaha motorbikes sold on credit to members of staff in 2003.

Mr Ernest Debrah, Minister, MOFA who appeared before the committee, told the PAC that about ¢42 million had been retrieved from staff who bought the motorbikes.

He explained that inputs for the recoveries were submitted to the Controller and Accountant-General in July 2003 and they were deducting the money but had to stop due to technical challenges they faced.

On the issue of unearned salaries paid to retired or vacating staff, the minister produced documents indicating that some of the money had been retrieved and gave the assurance that his outfit would continue to chase those people until the entire amount was retrieved.

The Audit report said, records examined on the contract disclosed that the contractor started the project before the District Tender Committee issued an award letter dated September 21, 2005 to take retrospective effect.

Other adverse findings made against the MOFA include ¢24.4 million credit granted under the Kapaala Sorghum Project to farmers in the Northern Region to promote cropping of sorghum for sale to Guinness Ghana Limited, which remains unrecovered since May, 2002.

The Asankrangwa District office of MOFA also has ¢9.9 billion outstanding proceeds from sale of fertilizers standing in its name.

The audit report said officials could not properly account for the distribution of 42,610 bags of fertilizers it made available to farmers on credit sales.

All efforts made by the audit team to obtain the list of beneficiaries and credit terms proved futile.

On the ¢52 million paid to the Ghana Advertising Company Limited, Mr Debrah gave an assurance that, the money would be retrieved.

He also gave the assurance that he will set up an audit implementation committee at MOFA to correct all the anomalies and queries raised by the Auditor-General against MOFA.