Tsatsu & IFC's $5m Probe

IT'S A HOAX

....as emergining details deflate IFC/World Bank right wing conspiracy and exposes double standards

Strategic Oil and Gas Resources, (Strat Oil), a company in which Tsatsu Tsikata is rumored to have 50% shares, has said that their hands are clean as far as their $5m fees from consultancy services with MODEC is concerned, adding that they welcome a due diligence request from the International Finance Corporation (IFC).

According to an official statement released by Stuart Sutton-Jones, Corporate Affairs Executive of StratOil yesterday, the company has already given its permission to MODEC to disclose details of their confidential agreement to all shareholders who are participating with MODEC in the equity of the FPSO “KWAME NKRUMAH” as well as lenders to the project (e.g. IFC/World Bank).

Late yesterday, MODEC, also issued a public statement saying that at the request of one of the equity partners (IFC) of the FPSO project, “MODEC is currently undertaking a due diligence of the service agreement with Strategic Oil and Gas Resources Limited. MODEC has retained outside independent counsel for this purpose”

But industry watchers, who have seen details of the agreement, say, the IFC of the Word Bank is embarking on a wild goose chase and fingered them for what they considered as double standards in their dealings with other partners in the Ghana Jubilee Oil Field. Watchers say, the IFC should come out and explain whether or not, they conducted due diligence on the scandal prone EO Group before providing funding to Kosmos, since the latter paid for the interest of EO Group.

“Is the IFC due diligence interest in the MODEC issue because Tsatsu Tsikata, CEO of StratOil wanted IFC to come and testify in the criminal case against him during the Kufuor regime,” quizzed one analyst.

“The IFC is seeking information from MODEC about its transactions. In the same way as the IFC, a commercial entity can seek information from their private parties about transactions of interest , it would have been expected that the IFC would be willing to also provide information that it has about transactions that it is involved in, which are of interest in judicial proceedings,” stressed another, adding, “And yet the IFC refused to come to court and testify about matters it was involved in during the trial of Tsatsu Tsikata!”

Mr. Stuart Sutton-Jones noted in his statement that StratOil provided advice and consulting services to MODEC for the preparation of their tender for the supply of an FPSO to the consortium involved in developing the Jubilee oil field offshore and related services. He observed that StratOIl’s services to MODEC was very extensive and included recommending the use of financing from the International Finance Corporation (IFC) as well as African Development Bank, AfreximBank, US Overseas Private Investment Corporation (OPIC), the African Finance Corporation (AFC).

“It was stratOil who also introduced MODEC to equity providers in the Middle East and carried out extensive economic modeling work for the project,” the source added.

StratOil said it is a matter of great satisfaction to them that the company could play a part that enabled the tremendous achievement of MODEC in winning a highly competitive tender and in supplying the FPSO within a time frame, which is adjudged a record in the industry for such a deep water project. StratOil added that it is beneficial to the Jubilee project and to Ghana that the MODEC bid was a low-priced bid that met the highest technical standards in the industry, a situation they said will enable first oil from jubilee field to be achieved in the 4th quarter of this year.

StratOil noted that it reserves the right to take legal steps against those who misrepresent facts concerning the agreement between themselves and MODEC and the due diligence process of equity and debt financiers of the FPSO. OLD WOUNDS

Environmental groups are also wondering whether the IFC conducted due diligence on compliance with environmental regulations and standards before it provided funding for Kosmos Energy.

Others say, they are not surprised by the turn of events, especially coming on the heels of boasting by Riva Levinson, a lobbyist for Kosmos Energy about her links with the President of the IFC in their conspiracy to make trouble for Ghana because of the Kosmos issue.

Members of the legal fraternity who have spoken on the issue as it appeared in the media say, the hypothesis for the investigation is completely flawed because Tsatsu Tsikata is not barred from participating in commercial activities in the oil and gas industry.