Government has directed the Economic and Organised Crime Office, (EOCO), to investigate all public officials whose actions led to the over payment of over 3.5 million dollars to a private company Calf Cocoa.
After the formation of Calf Cocoa, the company started the construction of a factory that was primarily meant to add value to Ghana’s raw cocoa through the processing of cocoa beans into cocoa oil, cakes and aromatic products.
The total cost of the project was estimated at US$ 10,000,000 United States dollars.
The Company was required to pay one million, two hundred and fifty thousand dollars ($1,250,000) as equity while the remaining amount of US $8,750,000 was to be provided by the Chinese government through the government of Ghana.
As a beneficiary of the loan granted the government of Ghana by the Chinese government, the company had to enter into subsidiary loan agreement with government of Ghana for the disbursement of the fund, which it complied with.
The first tranche of the money, $3,488,773.33 was disbursed between February 2000 and December 2000 under the erstwhile Jerry John Rawlings administration, while the rest of US $ 3, 414, 620.74 was disbursed under the new administration headed by President John Agyekum between April 2001 and March 2003.
The undisbursed amount which the company was entitled to under the subsidiary loan agreement at the time stood at $1,800,000 but the then government failed to make the payment, forcing the company to seek redress at the court.
Government made its final payment after the Ministry of Finance was dragged to court but instead of the expected payment of US$ 1.8 million the state ended up paying a total of US $ 3.55 million resulting in an excess of US 1.75 million.
The Chinese Partner subsequently withdrew from the partnership citing political interference as reasons for its decision.
The failure of the then government to make the payment within the given time frame has been described by one of the shareholders of the company, Nana Konadu as politically motivated.
Recommendation
Government in its recommendation charged EOCO to indentify and sanction accordingly those whose acts and omissions led to the unwarranted payment by the state to deter others from acting irresponsibly.
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By: Marian Ansah/citifmonline.com/Ghana
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