Quality Grain received 13 million dollars without approval

The government granted 13 million dollars loan to the Quality Grain Company in 1996 without Parliamentary approval, an official of the Serious Fraud Office (SFO), on Monday told the Fast Track Court.

The court is trying six persons including two former Ministers of State charged with conspiracy and wilfully causing financial loss to the state by causing the transfer of more than 20 million dollars into the accounts of the company in the United States.

Mr Theophilus Cudjoe, Deputy Executive Director (Investigations) of the SFO, giving evidence for the prosecutions, said Kwame Peprah, former Finance Minister and the third accused, signed the agreement on the loan.

Led in evidence by the Director of Public Prosecutions (DPP), Mr Osafo Sampong, the witness said the other signatories to the agreement were Ms Juliet Woodard, a director and secretary of the company and an official of the South Trust Bank of the US.

Mr Cudjoe said the loan was unlike a seven million-dollar loan approved by Parliament for the same company.

The other accused persons are, Ibrahim Adam, former Minister of Food and Agriculture (MOFA), Dr Samuel Dapaah, Dr George Yankey Nana Ato Dadzie and Kwesi Ahwoi, all high-ranking government officials in the previous administration.

They have all pleaded not guilty and each of them is on a self-recognisance bail.

Mr Cudjoe said in August, 1998 he started investigations into the operations of the company and found out that it was registered as a limited liability with the name: Quality Grain Company, Ghana Limited with three directors including Ms Woodard, who was also the secretary. The other two directors were a Ghanaian and a foreigner.

Witness said investigations showed the government had 24 per cent of the shares in company that was registered in July 1995 and that it never held a meeting until he submitted his report in 1999.

Mr Cudjoe said he contacted the Ghana Investment Promotion Centre (GIPC) where investigation showed that the company, which was a foreign one, had not registered with the Centre.

Witness said he enquired from Dr George Sipa Yankey, who was then Head of the Legal Department on payment of loans at the Ministry of Finance and he provided documents covering the seven million-dollar loan and a feasibility report on the company's rice project at Aveyime in the Volta Region.

He said he contacted Dr Dapaah, who initially did not cooperate with the investigations until he applied for court summons to compel him to appear before the SFO.

Mr Cudjoe said due to Dr Dapaah's attitude in September 1998, the matter ended at the office of the former Vice President, Professor John Evans Atta Mills who advised him (witness) to "cool down".

Witness said he submitted a report and an executive summary of the investigations to Professor Mills, who directed that a committee be formed to deliberate on the findings.

He said Ms Woodard, Dr Dapaah, Dr Yankey and himself were members of the committee that met twice.

Witness would tender documents on the minutes of the meetings at the next adjourned date. Hearing continues on Tuesday.