[ 2016-11-22 ]

Mahama caught in bogus $300m ‘security infrastructure' deal
The Mahama government is accused of effectively
“stealing” $300 million from state coffers as
they face their electoral fate in two weeks’
time at the December 7 presidential and
parliamentary elections.

Evidence seen by the Daily Statesman shows that
already $120 million has been inappropriately
taken out of state coffers for this questionable
project, which insiders see as a mere cover for
cash to fund the ruling party’s electoral
efforts.

It is officially a “contract for the improvement
of Ghana’s Security Infrastructure Request’.
That contract is valued at a huge
US$297,475,628.00, which would be yet another big
debt for a future government to struggle with
after 2016.

The contract is ostensibly for, as stated,
“various security equipment, surveillance
systems, software and technical training…”

The shipment date for the said goods is stated as
November 30, 2016, with China, Dubai, South
Africa, USA, UK and Hungary stated as countries of
origin.

A very concerned source at the Ministry of
Interior disclosed, “There is no basis for this
contract, and we know that it would definitely be
a prime case for criminal investigations if there
is a change of government this year. It is
reckless, heartless and totally irresponsible.”

The company behind this deal is Santa Baron
Ventures Ltd, which was set up in the UK just
seven months ago, on April 19, 2016 in West
Molesey, Surrey, UK. The men behind it are a
Ghanaian, Kwabena Boateng-Aidoo, and two Britons,
Martin Wightman and Daniel Wealthyland.

Sources at the Ministry of Finance suspect that
the $120 million that has already been paid out
for the project is actually to feed the electoral
efforts of the incumbent president.

In a frantic effort to fill the fiscal gap left by
the drawn down, the Controller and Accountant
General Department on November 10, 2016 authorized
the Bank of Ghana to establish deferred payment
letters of credit.

The letter signed by Samuel Aryee, acting Deputy
Controller & Accountant-General, and addressed to
the Director of the Banking Department of BoG,
reads: “you are hereby authorized to establish
deferred Letters of Credit to the tune of
US$297,475,628.00 in favour of Messrs Santa Baron
Ventures Limited . . . On behalf of the Ministry
of Interior in respect of contract agreement
entered into with the above company for the
improvement of Ghana’s security
infrastructure.”

A deferred payment letter of credit is one that is
paid a fixed number of days after shipment or
presentation of prescribed documents. It is used
where a buyer and a seller have a close working
relationship because, in effect, the seller is
financing the purchase by allowing the buyer a
grace period for payment.

As to how a company set up just seven months ago,
with characters of no known record in security
matters, managed to win a contract valued at some
GH¢1.2 billion equivalent and be considered as
worthy of deferred letters of credit is puzzling
to civil servants at the Ministry of Finance.

The main faces fronting this deal are Prosper
Bani, the Minister of Interior, and Seth Terkper,
the Minister of Finance. But, there are said to be
three main higher characters actually pushing the
levers behind these two ministerial persons.

Another letter dated November 3, 2016 and signed
this time by Seth Terkper, authorizing the same
deferred letters of credit, puts the maturity for
the letters of credit at 2019, with six scheduled
payments of some $50 million each from 2017.

“The amount should be charged to the 2017 budget
of the Ministry of Interior,” the Finance
Minister instructs.

A separate letter signed by James Agalga, Deputy
Minister of Interior, dated September 23, 2016,
gives some details: “The major condition to be
fulfilled on the part of the Principal to enable
the General Contractor to deliver as expected, is
for the Ministry of Finance to issue an
irrevocable deferred letters of credit to cover
the entire contract sum of Two Hundred and Ninety
Seven Million Four Hundred and Seventy-Five
Thousand Six Hundred and Twenty Eight Dollars (USD
297,475,628.00) which is to be spread over three
years in six equal instalments, payable between
the year 2017 to 2019 as part of the Ministry of
Interior’s Medium Term Expenditure Framework.”

Source - The New Statesman

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