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Wednesday, 16 September 2009

Political Corruption in Ghana: Who is Who?




When they were in opposition members of the National Democratic Congress [NDC] constantly accused the New Patriotic Party [NPP] of being corrupt and the accusation has continued when President Mills government took office. The NPP has been accused by the NDC for appropriating millions of dollars during the celebration of Ghana@50. The NPP has also been accused of making profits from the building of the Jubilee House built to house the presidency. The allegation has forced President Mills to delay moving into House.

The allegations against the NPP seem to go on by the day with P.C. Appiah Ofori a member of the NPP party going public to accuse Members of Parliament belonging to the NPP. He accused them of receiving $5000 each during the sale of Ghana Telecom in which they were asked to vote to support the motion.

NDC also points out the loan secured by the son of former president Chief Kuffour could only have been granted due to his relationship with the father.

Again the NDC says Dr. Anane corruption saga in which he was investigated and exonerated points to a deep seated corruption practices in the NPP.

NDC says the investigation of Asamoah Boateng over award of contracts in his ministry is a clear manisfestation of what the NPP is best noted for. The arrest of former foreign minister Kwasi Osei-Adjei is another attestation of deep seated corruption in the former ruling party, NDC claims.

Pointing to the 25,000 dollars registration fee paid by each of the presidential candidates who contested for the flagbearership of the party as nothing more than looted public money. NDC says the $25,000 could only have come illegal source and probably from the state coffers.

The NPP on the other hand has countered the NDC's accusations by pointing to the massive corruption scandals that marked the 11 years of PNDC and 8 years of NDC rule. They point to recent revelations that suggest the NDC transition team spent a whopping 3.61 billion cedis on tea and water within two months. In I told you so style members of the NPP say NDC is only a reflection of an advanced cancer that cannot be cured. They point to recent media report that the NDC spent one million new Ghanaian cedis (about 10 billion old Ghana cedis) during President Obama's visit and question how the NDC could spend such amount in just under 24 hours.

NPP also points to revelations in Nigeria and Ghanaian newspapers that the Governor of Rivers State of Nigeria Mr. Rotimi Amaechi paid $3.5 million to ex-President Rawlings which was used to bankroll NDC 2008 election campaign that brought them victory.

NPP says the NDC is like a pot calling the kettle black and points to recent information in public domain that Mahama Ayariga the spokesperson for President Mills has illegally acquired five tractors meant for poor Ghanaian farmers. NPP say Ayariga took five tractors meant for underprivileged farmers and paid for only one whose price was further reduced for him.

NPP says the NDC top brass should shut their buccal cavity because they have no moral right to accuse its members of corruption. Members of NPP claim that NDC shady deals are everywhere for all Ghanaians to see and say the trial of Scancem officials in Norway in 2007 in which they revealed that they paid millions of dollars to Rawlings and his wife through Unibank account in Luxemburg and Barclays bank account in Geneva, Switzerland show the extent in which corruption has become part and parcel of NDC leadership.

NPP says corruption is really in the DNA of NDC and they point to the revealation by the former director of Biwater Company in the UK that he paid 7000 pounds per child per term for Rawlings children who studied in UK.

They have accused Muntaka of using his office as a charity office for his family buying pampas, khebab and travelling around with his girl friend at the cost of the Ghanaian tax payer. They point to Alhaji Muntaka Mubarak as the living proof and the real embodiment of NDC corruption.

The NPP further points to an ongoing corruption trial in Southwark Crown Court, London, United Kingdom in which a family company called Mabey & Johnson of UK is believed to have paid $6 million to NDC party gurus in exchange for bridge contracts. It has been revealed that the said corruption took place between 1994 and 1999 at a time when the current President of the Republic President Atta Mills was vice the president with Rawlings as president. They claim that the mention of current Health Minister George Sipa Yankey and four others as being the main recipient of the bribe money as nothing new.

One NPP guru quoting from the Statesman said: "Former President Rawlings has always used the slightest opportunity to preach the virtues of instilling probity, accountability, integrity and ethics into Ghanaian politics. But this case of a British Company A little-known family who became one of the richest in Britain - accused of making excessive profits, by building what their critics call "bridges to nowhere", charged with corruptly influencing Ghanaian politicians and officials between 1994 and 1999 to gain bridge building contracts in Ghana, is a sudden twist of events". The NPP guru concludes that the case has destroyed the little political capital that the NDC had.

Another NPP activist also quoted from another paper saying: "The history of bribery among NDC officials is legendary. In 2002, the former Managing Director of Ghana Rubber Estates Limited (GREL), Mr. Etienne Arthur Marie Popeler told an Accra Fast Track Court that he gave monies to Dan Abodakpi, the former Minister of Trade and Industry, Sherry Ayittey, Treasurer of the 31st December Women’s Movement and Mr. Emmanuel A. Agbodo, (former Executive Secretary) of the Divesture Implementation Committee (DIC) under the previous NDC Administration to influence the divestiture of GREL". The 51-year old Belgian said he paid $1 million bribe to the 31st December Women’s Movement (31st DWM), an NGO run by Rawlings’ wife, for his French company SIPH to secure GREL. Sherry Ayitey is back under the Mills-administration as Minister for Environment and Science.

NPP further points to the bribery and corruption scandal hit the Rawlings administration in 1995/96 when CHRAJ conducted investigations into allegations of corruption and illegal acquisition of assets made against four ministers of state and some senior government officials. The case involved Col E.M Osei-Owusu (Rtd), a former Minister of the Interior; P.V. Obeng, Presidential Staffer, Ibrahim Adam, Minister for Agriculture and two others from the Agriculture Ministry and Adjei Marfo, Chief executive officer of a state owned company. NPP continues that the adverse findings made by the Commission against three of the officials and the infamous white issued by the Rawlings administration to cover up the malfeasance can only happen within the NDC and nowhere else.

NPP says corruption allegation levelled at current Foreign Minister Alhaji Mohammed Mumuni is only a tip of a herculian problem and a practice which is so common in the NDC. NPP says an audit report from the Auditor General's office implicating Alhaji Mohammed Mumuni in financial malfeasance and wrong-doing makes the NDC and the government of Fiifi Mills a laughing stock in the international community especially when it comes to negotiations in financial matters.

NPP says a speech by the Nobel Laurent, Prof. Wole Soyinka during the second anniversary lecture in memory of the late nationalist, Chief Michael Adekunle Ajasin in Akure, Ondo State, in which he said: "I challenge President Olusegun Obasanjo to use his anti-corruption crusade in repatriating our monies looted by the military regimes and the $5 million money given to President Rawlings who joined hands with General Abacha in embracing the culture of corruption which has tainted Nigeria as a nation" is not only an indictment on the persoanlity, integrity and everything Rawlings and the NDC stand for or have stood for but is also an indelible mark that can never be erased and will go down in history as one of the most corrupt leaders ever to have governmed Ghana.

NPP says the sudden and unexplained sacking of Victor Smith by Rawlings using a text message can only be explained by money that Smith did not allow Rawlings to receive from a Nigerian financier. During the last Ghana election, Rawlings got upset because Victor Smith directed a Nigeria financier who wanted to give money to Rawlings for NDC campaigns, but Victor Smith told the Nigerian to give it to the Mills campaign team. This made Rawlings to fire Smith by text message, telling him to seek employment at the Mills campaign team.

NPP says the millions of cedis that were found in the bedroom of former Attorney General and Minister of Justice of NDC in the person of Dr. Obed Asamoah only point to "the help yourself" government that existed before the NPP took over in 2000.

And as if that all these are not enough Nana Ohene-Ntow, the General Secretary of the NPP in a hot exchange with Kofi Adams has called on Jerry Rawlings t(he founder and a key member of NDC), to come clean if he is not corrupt. Nana Ohene-Ntow told Adams who doubles as the spokesperson for Rawlings and NDC Deputy Youth Organiser, "he [Rawlings] should tell Ghanaians how he got money to build his mansion at Agyirigannon, how he financed his children's fees abroad, and those who provided him the 4 wheel drive vehicles.If he fails to provide the hard facts, he should desist from disturbing the peace of this country".

With no ending sight to accusations and counter accusations of corruption in Ghana which party can be considered most corrupt it is only Ghanaians who can say which party is the most corrupt in Ghana.

By Lord Aikins Adusei

Ghana:Sipa Yankey to resign over Mabey bribery scandal?



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Where is Rawlings he used to kill people who owed 50 cedis here we have his minister taking millions of dollars in bribes?
Through a mistake, a breakdown in communications between two powerful countries will occur. The situation is a lot more complex than will appear on the surface. The leader involved will feel great regret about what happened and will want to continue his career and help correct the situation, to help make up for the adverse affects.

But he will be hung, symbolically, by others wishing to take his position in the organization. He will be hung as far as politics and his career are concerned. It will almost be like committing suicide because in the end he will be a broken man. The entire event will be viewed as a fiasco from both sides. It will have very harmful and even cataclysmic consequences
- By: Nostradamus (Century II, Quatrains 35 and 48)
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Health Minister Dr George Sipa Yankey

At least 5 officials of President John Atta Mills's government are set to either resign or be fired after being implicated in the ongoing bribery and corruption trial of UK bridge-building firm Mabey and Johnson, The Statesman has learnt.

The presiding judge, the Honourable Mr Justice Morrison sitting in the High Court of Justice, Queens Bench Division (UK) has issued a press gagging order barring the disclosure of the names of those implicated. But even before the ruling is made on September 25, 2009, after which the gag order will be lifted, investigations by foreign correspondents of The Statesman have revealed the names of five senior members of the Mills government allegedly caught in the web of bribe taking. One such name is health minister George Sipa-Adjah Yankey (other names will be revealed in subsequent editions).

Dr. Yankey, a former director of legal affairs at the Ministry of Finance and Economic Planning under the previous NDC administrations, was jailed together with then Finance Minister Kwame Peprah and others on 28th April, 2003 for causing financial loss to the State on a different matter.

Judge Morrison issued the gagging order in the UK to avoid influencing the outcome of other cases involving Mabey and Johnson (in Iraq ). This order, however, only operates within the territorial boundaries of the United Kingdom and therefore has no effect in Ghana . Moreover, till date, no case has been filed on the matter in any Ghanaian court.

The case was brought by the UK 's Serious Fraud Office and is the first case in which a British company is being prosecuted in the United Kingdom for engaging in corruption in a foreign country, and Ghana , under President Jerry John Rawlings and Vice President John Atta Mills, is one of the countries where this corruption took place.

Mabey & Johnson is accused of corruptly influencing politicians and officials in Ghana between 1994 and 1999 to land build-bridging contracts. The firm has admitted conspiring to obtain contracts by corruptly influencing Ghanaian politicians but has so far refused to name those who were influenced after a police interview. Contracts worth £22m were awarded in the 1990s for the construction of nine bridges in rural areas.

The Reading based company, owned by one of Britain 's richest families, had admitted on 7 th July 2009 at Southwark Crown Court to paying bribes to win contracts in Ghana , Jamaica and Iraq . Evidence available to The Statesman suggests that perhaps as much as $6 million was paid as bribery money to top Ghana government officials during the two Jerry John Rawlings-headed National Democratic Congress governments (1993-2000) for the construction of bridges to facilitate transport and the carting of foodstuffs from the rural areas.

However, it has emerged that the bridges it had been paid to build in Ghana were defective. According to a high court judgment, the firm had to spend more than £2m rebuilding and repairing the bridges. The weakened bridges contained a variety of design faults after Mabey staff had made simple engineering miscalculations.

After Mabey starting its bridge building operations in Ghana , its managers found that one of its bridges with the same design had become unstable and as such partially collapsed in Ethiopia in 1996. The managers feared that its bridges in Ghana might also fall down. Three bridges were rebuilt and five others repaired.

According to the charge sheet of case number 0902300773 , the first badges of bribery for the first Ghana project, Priority Bridge Programme 1, were paid between 01/01/1994 and 01/01/1995, one year after the nation returned to constitutional rule under President Rawlings.

The second corruption case took place between 01/01/1995 and 01/01/1997 for the Priority Bridge Programme 2.

“ Between the 1st day of January 1994 and 18th day of August 1999, [respondent] conspired with certain of its directors, executives, employees and agents to give or agree to give corrupt payments contrary to Section 1 of the Prevention of Corruption Act 1906 to Ministers, officials and other agents of the Government of Ghana as inducements to secure, or as rewards for having secured contracts from the Government of Ghana, known as "Priority Bridge Programme 1", Priority Bridge Programme 2" and "Feeder Roads Projects" for the supply of goods to the said Government of Ghana by Mabey and Johnson Limited. Contrary to Sec tion 1 of Criminal Law Act 1977, ” the first charge reads.

Mabey and Johnson is also accused of corruptly paying €422,000 (£363,000) to Saddam Hussein 's regime between May 2001 and November 2002 and is also accused of conspiring to make corrupt payments in Jamaica between 1993 and 2001. The firm Mabey has also been accused of corruption in the Philippines , Papua New Guinea , the Dominican Republic and Panama .

The bridge-building firm's prosecution comes after years of attacks on London for its alleged hypocrisy in criticising poor countries over corruption, while failing to tackle the British companies and managers that feed it by paying bribes to win contracts.

The trial is also the next such case in recent years in Europe to which President Rawlings' name and government have been linked. Ironically, Mr Rawlings is asking for his political opponents to be prosecuted for corruption.

In 2007, his name popped up in a Norwegian court, when former top officials of cement firm, Scancem admitted in court that they paid millions of dollars of bribe money to President and Mrs Rawlings.

Also in the UK last year, Private Eye magazine quoted the head of Biwater company as saying that he used to pay the school fees of Mr Rawlings' children. This happened at a time that his company was bidding for a major oil contract in Ghana .

The prosecution by the Serious Fraud Office has been trumpeted by the British government, which has been under pressure to bring more corrupt exporters to book. Critics say Britain 's performance has been lamentable since it promised in 1997 to stamp out the payment of bribes by British companies to foreign ministers and civil servants.
Source: The Statesman - The Statesman

Ghana:Mills’ Man In Premix Diversion



Two persons were on Thursday arrested by the Elmina Police in the Central Region for their alleged involvement in the diversion of premix fuel in the area. The two, according to Daily Guide sources, mentioned the name of a National Premix Committee Member, Kobina Badu popularly known as Maanoma, as the brain behind the act.

Maanoma, who was rewarded by President Atta Mills with the position, is a well-known NDC man who once described former President John Agyekum Kufour as a leader who did not have the welfare of fishermen at heart during a People’s Assembly held at Sekondi about a year ago. "Mr Kufour, do you think the sea is like a lorry park which will need renovation when it is damaged?" he questioned the former President at the People’s Assembly in Sekondi.

Information gathered by the paper indicated that Maanoma usually collects four drums of premix fuel from all the premix outlets from every consignment they receive in the region and sells it at GH¢45.00 per gallon instead of GH¢26.00 due to the insufficient premix fuel being distributed under the NDC Government. The source said he collects the four drums with the explanation that it is a protocol decision and that everybody must oblige and later sends the premix fuel to the Marine Park at Elmina to sell.

Sources said luck eluded him when a taxi driver operating from Bronyibema to Elmina and another guy he had sent to collect the premix from Ampanyin Landing Beach Committee were arrested at Elmina Marine Park with the booty. Daily Guide learnt that after interrogation, the two mentioned Maanoma as the brain behind the diversion of the fuel.

They were detained at the police station and later released upon instruction from the Regional Minister, Madam Ama Benyiwa Doe, Daily Guide learnt. According to the information, the Regional Minister said it will be a dent on the Mills Administration if the incident gets to the public, thereby ordering the police not to release any information to the press.

Due this ‘order from above’ the Elmina police are now refusing to open up to the press. Meanwhile, a well-known NDC man who was alleged to have lodged the complaint at the Elmina Police station, a certain Texas, also refused to comment on the issue when contacted. Fishermen in Elmina are now calling for the head of Maanoma who is now at large.

All efforts to speak to Maanoma and the Regional Minister proved futile as their phones were off. Further investigations conducted by DAILY GUIDE revealed that the premix committee members in Cape Coast normally take two drums of the premix fuel from every consignment and later sell the rest to the fishermen, even if it is not sufficient.

Source: Daily Guide

Ghana:What NPP Did With $750m Eurobond



The National Democratic Congress government is at it again. When the opposition in Parliament raised concerns about how government was to spend the supplementary budget request made last week, government responded by alleging fraud in the disbursement of the $750 million that the previous government raised last year from the international capital market through the issuance of sovereign bonds – the first of its kind by this country.

This week about four pro-government newspapers have published frontpage stories on the Eurobond with one screaming ‘FRAUD’! But, documents sighted by The Statesman points to a different story given to the World Bank and the International Monetary Fund by the NDC in the Ghanaian government’s quest to gain credit facilities from the two multilateral institutions.

According to the World Bank document of June 15, 2009, covering the $300 million Economic Governance and Poverty Reduction Credit for Ghana, “The information provided by the Government of Ghana confirms therefore that the proceeds from the Eurobonds were used for productive investments, primarily in electricity generation and distribution…” Indeed, the World Bank confirms that these “two areas that had been identified in the 2007 CEM as warranting additional investments to sustain economic growth.” Ghana registered a record high economic growth of 7.3 percent, in spite of the global financial crisis.

The record hikes in crude oil prices of 2008, coming on top of the low water levels at the Akosombo Dam in 2007 meant that government had to be spend extra money in buying crude oil to feed the thermal plants for electricity generation. In fact, for the first six months of 2008, over $1.2 billion was spent on importing crude oil. Only a third of that was used this year. But the expenditure was deemed necessary to support industry and economic activity in general, which posted big growth last year.

At paragraph of the June 15 World Bank document, the details of what the $750m was used for are spelt out. What they show is that by the time the NDC took over in January 2009, $155 million of the Eurobond funds were still lodged at the Bank of Ghana to be spent. While the NDC is focusing on how the New Patriotic Party spent the first $595 million, Ghanaians are yet to be told what has happened to the $155m.

According to the World Bank document, “Non concessional borrowing in 2007 was mostly used to raise energy capacity and that of 2008 is being assessed. Out of the US$750 millions borrowed in 2007 in the form of Eurobonds, US$595 millions had been disbursed by January 2009.” It goes on to give the details:

“The proceeds were allocated primarily to support public investments in the energy sector according to the following distribution: US$286 million for investments by the Volta River Authority (VRA); US$134 million for investments by the Electricity Company of Ghana (ECG); US$54 million for the investment in the Bui Dam; US$ 31 million for the Government’s equity investment in the West Africa Gas Pipeline (WAGP); and US$90 million for public investments in road infrastructure.”

It adds, “The information provided by the Government of Ghana confirms therefore that the proceeds from the Eurobonds were used for productive investments, primarily in electricity generation and distribution.” In 2008, the Government contracted five new non concessional loans, for a total amount equivalent to US$585 million. The main factor driving the decision to borrow on a non concessional basis in 2008 was the need to continue ongoing public investment projects in key sectors, notably in the energy and water and sanitation sectors.

Rawlings Exposed: Biwater paid his children's school fees



In-depth investigations conducted by The Statesman have established that the education of two of former President Jerry John Rawlings’ daughters abroad was funded by a British water company – Biwater – which paid 7,000 Pounds Sterling a term per child. A few years ago an independent newspaper based in Accra, reported that after his government had created the Junior and the Senior Secondary School (now Junior High and Senior High School) system, the former President deemed it more expedient to educate his children abroad using the Ordinary and Advanced Level system, which his government had discredited.

The children, Ezanetor and Amina Rawlings, were sent to Millfield public school in Dorset – a classy institution that charges very exorbitant fees. The fees were described as scholarships paid for by Biwater, which was then bidding for the management of Ghana’s water supply system.

By Peter Atiemo

Rawlings corruption exposed:Scancem rejects $5m offer to kill court case

The Statesman , 14/08/2007

In two days, barring any last minute deals, the identity of a private account in Geneva, Switzerland in which about $1.7 million was transferred as bribe monies, is expected to be disclosed.

On the orders of Norway's Supreme Court, details of the account are supposed to be provided. This should help in the appeal case this December, in which a former top employee of Scancem is accused of stealing more than $4 million meant as bribe monies to top Ghanaian personalities, namely PV Obeng and former President Jerry John Rawlings and his wife Nana Konadu Agyemang-Rawlings.

But latest information reaching The Statesman indicate that the main players in the ongoing saga, Tor Egil Kjelsaas, who was head of Scancem's cement operations in Africa, mainly Ghana and Togo, with the assistance of three of his witnesses, all former executives of Scancem, including the highly respected Gerhard Heiberg, Per Jacobsen and Tor Nygaard, and some of the alleged major Ghanaian recipients of monies from the slush fund, have recently offered Scancem a $5 million settlement to halt the continuation of the case against Tor Egil Kjelsaas, which is at the Appeal Court stage. Scancem's acceptance of the offer would also void the enforcement of the Norwegian Supreme Court’s order for the revealing of the identity of the owner(s) of the Barclays account in Switzerland.

When contacted, attorney for Scancem, Kyrre Eggen, confirmed that such an offer, as well as other offers in the past, had been received by his clients. But his clients were still pressing ahead with the case.

Pushed further, Mr Eggen, who dismissed our query that going ahead with the case might be counter-productive for Scancem, stated emphatically: "No, this is a new Scancem. We totally disapprove of what the old Scancem did.” Scancem was acquired by German firm HeidelbergCement in 1999.

All three former executives of Scancem who gave evidence in support of Tor Egil Kjelsaas, Gerhard Heiberg, former CEO and Chairman of Aker (former owners of Scancem), Per Jacobsen (head of finance, Scancem) and Tor Nygaard (who headed Scancem operations in Ghana, Ghacem) were instrumental in devising and implementing the alleged bribery scheme.

Mr Eggen had earlier told The Statesman that the German owners also intend with this trial to send a clear message that they "disapprove of the bribery scheme that was operated by the former owners of Scancem."

In 2000, a report by Scancem International ANS, led by its in-house lawyer, Arne-Jørg Selen, discovered that an account at Unibank, Luxembourg, which all along they believed belonged to PV Obeng did in fact belong to one of the men who was responsible for putting money into that account, Tor Egil Kjelsaas. About $2.5 million had gone into that account in five years, from 1993 to 1998.

Within the same period, another account held at Barclays, Geneva, Switzerland had received from Scancem another $1.7m. This account, the Scancem bosses believed belonged to Ghana’s first lady at the time, Nana Konadu Agyemang-Rawlings.

About seven years ago, the Hibis Group, a UK-based anti-fraud and anti-corruption systems firm, with a branch on Drammensveien 39, Oslo, Norway, found out for Scancem that the Unibank account was in the name of Mr Kjelsaas. But, the investigators drew a blank on the Barclays account, allegedly in the name of Mrs Rawlings.

Mr Kjelsaas’ explanation to Scancem’s internal investigators, as contained in pleadings before a Norwegian District Court last year, was that the account was in his name "because he did not want to put the recipients at risk."

A similar investigation had been done by the old bosses of Scancem (before it was sold to the German firm) by Cato Holmsen, director of administration at the time.

Holmsem concluded in his report of January 2000 that in spite of some glaring irregularities with the operations of the slush funds, he could find no evidence that Kjelsaas misappropriated the bribery monies.

He had spoken to two of the intended recipients, a Togolese Minister of Industry Payadowa Boukpessi (and later Finance Minister), who was summoned to Oslo by Scancem and Ghana’s PV Obeng and had become convinced that at least those two received the bribes, if not all, as intended.

According to Scancem’s own internal investigation, the Togolese Minister confirmed to Holmsen that he received the payments as scheduled.

Kjelsaas was said to have withdrawn cash in London or Luxembourg and passed it on to the correct recipients. His witnesses contended that Kjelsaas brought the money to Africa by air. Thus, the movements in the Luxembourg accounts, even if disclosed, would not show who ultimately got the money.

Court testimonies given and evidence before the court showed that Scancem paid amounts to other accounts during this period which were controlled by African recipients.

Tor Nygaard, who headed Scancem operations in Ghana, Ghacem, for a long time, told the court that Scancem also paid out amounts in cash locally to a number of recipients in Ghana, usually in envelopes and that the person who undertook this exercise was a top Ghanaian executive at Ghacem, Accra.

As was captured in the report filed for Dagens Naerinsgliv on April 21-22 by two of Norway’s most respected journalists, Geir Imset and Harald Vanvik, former Scancem CEO Gerhard Heiberg stated before a Norwegian court that former President Rawlings and PV Obeng were among top African personalities who received considerable payments from Scancem.

The words attributed to the witness, Mr Heiberg, in the matter before the Asker and Baerum District Court last year, according to a translation done on behalf of this paper, reads: "There were a number of people, but I don’t want to give any names. There were more than Rawlings and PV, including politicians and corporate heads."

The Rawlingses, through their lawyers, have denied receiving any such monies.

In an interview last week with our Editor-In-Chief, Asare Otchere-Darko, and Kweku Baako Jnr, Editor of theCrusading Guide, in Norway, the two journalists denied that they came to the conclusion that Mr and Mrs Rawlings received bribes, they only quoted from testimony presented by Mr Heiberg. "We cross-checked with him and he came and said that the quote was an accurate reflection of his testimony in court that PV Obeng and Mr and Mrs Rawlings were not the only recipients of bribes.

"Not only that, after publication, he granted us an interview in which he congratulated us for doing a good story."

The two reporters say they have evidence to corroborate their story, some of which is in the possession of The Statesman, and have dared the Rawlingses or anybody who believes they have been defamed by their publication to sue.

Read subsequent editions of The Statesman for more on the unfolding bribery saga

Scancem rejects $5m offer to kill court case

The Statesman , 14/08/2007

In two days, barring any last minute deals, the identity of a private account in Geneva, Switzerland in which about $1.7 million was transferred as bribe monies, is expected to be disclosed.

On the orders of Norway's Supreme Court, details of the account are supposed to be provided. This should help in the appeal case this December, in which a former top employee of Scancem is accused of stealing more than $4 million meant as bribe monies to top Ghanaian personalities, namely PV Obeng and former President Jerry John Rawlings and his wife Nana Konadu Agyemang-Rawlings.

But latest information reaching The Statesman indicate that the main players in the ongoing saga, Tor Egil Kjelsaas, who was head of Scancem's cement operations in Africa, mainly Ghana and Togo, with the assistance of three of his witnesses, all former executives of Scancem, including the highly respected Gerhard Heiberg, Per Jacobsen and Tor Nygaard, and some of the alleged major Ghanaian recipients of monies from the slush fund, have recently offered Scancem a $5 million settlement to halt the continuation of the case against Tor Egil Kjelsaas, which is at the Appeal Court stage. Scancem's acceptance of the offer would also void the enforcement of the Norwegian Supreme Court’s order for the revealing of the identity of the owner(s) of the Barclays account in Switzerland.

When contacted, attorney for Scancem, Kyrre Eggen, confirmed that such an offer, as well as other offers in the past, had been received by his clients. But his clients were still pressing ahead with the case.

Pushed further, Mr Eggen, who dismissed our query that going ahead with the case might be counter-productive for Scancem, stated emphatically: "No, this is a new Scancem. We totally disapprove of what the old Scancem did.” Scancem was acquired by German firm HeidelbergCement in 1999.

All three former executives of Scancem who gave evidence in support of Tor Egil Kjelsaas, Gerhard Heiberg, former CEO and Chairman of Aker (former owners of Scancem), Per Jacobsen (head of finance, Scancem) and Tor Nygaard (who headed Scancem operations in Ghana, Ghacem) were instrumental in devising and implementing the alleged bribery scheme.

Mr Eggen had earlier told The Statesman that the German owners also intend with this trial to send a clear message that they "disapprove of the bribery scheme that was operated by the former owners of Scancem."

In 2000, a report by Scancem International ANS, led by its in-house lawyer, Arne-Jørg Selen, discovered that an account at Unibank, Luxembourg, which all along they believed belonged to PV Obeng did in fact belong to one of the men who was responsible for putting money into that account, Tor Egil Kjelsaas. About $2.5 million had gone into that account in five years, from 1993 to 1998.

Within the same period, another account held at Barclays, Geneva, Switzerland had received from Scancem another $1.7m. This account, the Scancem bosses believed belonged to Ghana’s first lady at the time, Nana Konadu Agyemang-Rawlings.

About seven years ago, the Hibis Group, a UK-based anti-fraud and anti-corruption systems firm, with a branch on Drammensveien 39, Oslo, Norway, found out for Scancem that the Unibank account was in the name of Mr Kjelsaas. But, the investigators drew a blank on the Barclays account, allegedly in the name of Mrs Rawlings.

Mr Kjelsaas’ explanation to Scancem’s internal investigators, as contained in pleadings before a Norwegian District Court last year, was that the account was in his name "because he did not want to put the recipients at risk."

A similar investigation had been done by the old bosses of Scancem (before it was sold to the German firm) by Cato Holmsen, director of administration at the time.

Holmsem concluded in his report of January 2000 that in spite of some glaring irregularities with the operations of the slush funds, he could find no evidence that Kjelsaas misappropriated the bribery monies.

He had spoken to two of the intended recipients, a Togolese Minister of Industry Payadowa Boukpessi (and later Finance Minister), who was summoned to Oslo by Scancem and Ghana’s PV Obeng and had become convinced that at least those two received the bribes, if not all, as intended.

According to Scancem’s own internal investigation, the Togolese Minister confirmed to Holmsen that he received the payments as scheduled.

Kjelsaas was said to have withdrawn cash in London or Luxembourg and passed it on to the correct recipients. His witnesses contended that Kjelsaas brought the money to Africa by air. Thus, the movements in the Luxembourg accounts, even if disclosed, would not show who ultimately got the money.

Court testimonies given and evidence before the court showed that Scancem paid amounts to other accounts during this period which were controlled by African recipients.

Tor Nygaard, who headed Scancem operations in Ghana, Ghacem, for a long time, told the court that Scancem also paid out amounts in cash locally to a number of recipients in Ghana, usually in envelopes and that the person who undertook this exercise was a top Ghanaian executive at Ghacem, Accra.

As was captured in the report filed for Dagens Naerinsgliv on April 21-22 by two of Norway’s most respected journalists, Geir Imset and Harald Vanvik, former Scancem CEO Gerhard Heiberg stated before a Norwegian court that former President Rawlings and PV Obeng were among top African personalities who received considerable payments from Scancem.

The words attributed to the witness, Mr Heiberg, in the matter before the Asker and Baerum District Court last year, according to a translation done on behalf of this paper, reads: "There were a number of people, but I don’t want to give any names. There were more than Rawlings and PV, including politicians and corporate heads."

The Rawlingses, through their lawyers, have denied receiving any such monies.

In an interview last week with our Editor-In-Chief, Asare Otchere-Darko, and Kweku Baako Jnr, Editor of theCrusading Guide, in Norway, the two journalists denied that they came to the conclusion that Mr and Mrs Rawlings received bribes, they only quoted from testimony presented by Mr Heiberg. "We cross-checked with him and he came and said that the quote was an accurate reflection of his testimony in court that PV Obeng and Mr and Mrs Rawlings were not the only recipients of bribes.

"Not only that, after publication, he granted us an interview in which he congratulated us for doing a good story."

The two reporters say they have evidence to corroborate their story, some of which is in the possession of The Statesman, and have dared the Rawlingses or anybody who believes they have been defamed by their publication to sue.

Read subsequent editions of The Statesman for more on the unfolding bribery saga


Source: The Statesman

JJ Rawlings, Nigeria and Corruption



On 29 November 1999, Nobel Laureate; Nigeria’s Prof. Wole Soyinka urged the retrieval of Abacha's loot from JJ Rawlings. Soyinka said: Nigeria’s loot recovery efforts should be boosted with a formal probe into and retrieval of a $5 million sum allegedly given to the Ghanaian President, Jerry John Rawlings by the late Gen. Sani Abacha's administration for image laundering.


Speaking at the second anniversary lecture in memory of the late nationalist, Chief Michael Adekunle Ajasin in Akure, Ondo State, Soyinka said: "I challenge President Olusegun Obasanjo to use his anti-corruption crusade in repatriating our monies looted by the military regimes and the money given to President Rawlings who joined hands with General Abacha in embracing the culture of corruption which has tainted Nigeria as a nation."

Just last month, June 2009, There were calls on the Governor of Rivers State, South-South Nigeria, Mr. Rotimi Amaechi to account for how his administration spent appropriated funds totalling over Five Hundred Billion Naira about $3.6billion in the last two years.

According to credible sources, part of the money that Amaechi is struggling to reconcile in the books may have actually gone into providing funds for the ruling party in Ghana, an alleged contribution to the election of incumbent Ghanaian President, John Atta Mills.

A whopping Four Hundred Million, about $3.5 million was allegedly transferred to facilitate the process inGhana. Former Ghanaian dictator, Flight Lt. Jerry John Rawlings (Retired) has been identified as the alleged conduit through which the huge sums were transferred to the ruling party in Ghana. Rawlings had been a regular visitor to River State.
During the last Ghana election, Rawlings got upset because one Victor Smith has directed a NIGERIAN financier who wanted to give money to Rawlings for NDC campaigns, but Victor Smith told the Nigerian to give it to the MILLS campaign team. This made Rawlings to fire Smith by text message, telling him to seek employment at the MILLS campaign team.

One Ghanaian said: “THEY ARE ALL THIEVES. Rawlings killed people for borrowing fifty thousand cedis and yet this idiot is running around the world coning people”.

On Friday 17 July 2009, Mabey and Johnson, a UK based company pleaded guilty at Westminster Magistrates Court in London, UK, to ten charges of corruption relating to contracts in Ghana, Jamaica and Iraq between 1993 and 2001.

The international bridge building firm is accused of seeking to corruptly influence politicians and officials inGhana between 1994 and 1999 to land build-bridging contracts.

This bribery allegation was allegedly linked with JJ Rawlings and his government. Five of the firm's eight directors have already resigned their positions as a result of the UK Government's investigations into a range of alleged corrupt practices by this company, including dealings with Saddam Hussein in Iraq in breach of UN sanctions.

Today, the NDC - Ghana's ruling party, (JJ Rawlings party) is doing all they can to suppress this story in Ghana(widely reported inGhana’s STATESMAN, through information fed them by a friend of mine here in the UK).

One Ghanaian Newspaper wrote: Former President Rawlings has always used the slightest opportunity to preach the virtues of instilling probity, accountability, integrity and ethics into Ghanaian politics. But this case of a British Company A little-known family who became one of the richest in Britain - accused of making excessive profits, by building what their critics call "bridges to nowhere", charged with corruptly influencing Ghanaian politicians and officials between 1994 and 1999 to gain bridge building contracts in Ghana, is a sudden twist of events.

The first major British company to be prosecuted for paying bribes abroad for contracts awarded.

The paper continues: The history of bribery among NDC officials is legendary. In 2002, the former Managing Director of Ghana Rubber Estates Limited (GREL), Mr. Etienne Arthur Marie Popeler told an Accra Fast Track Court that he gave monies to Dan Abodakpi, the former Minister of Trade and Industry, Sherry Ayittey, Treasurer of the 31st December Women’s Movement and Mr. Emmanuel A. Agbodo, (former Executive Secretary) of the Divesture Implementation Committee (DIC) under the previous NDC Administration to influence the divestiture of GREL.

The 51-year old Belgian said he paid $1 million bribe to the 31st December Women’s Movement (31st DWM), an NGO run by Rawlings’ wife, for his French company SIPH to secure GREL. Sherry Ayitey is back under the Mills-administration as Minister for Environment and Science.

Another bribery and corruption scandal hit the Rawlings administration in 1995/96 when CHRAJ conducted investigations into allegations of corruption and illegal acquisition of assets made against four ministers of state and some senior government officials. The case involved Col E.M Osei-Owusu (Rtd), a former Minister of the Interior; P.V. Obeng, Presidential Staffer, Ibrahim Adam, Minister for Agriculture and two others from the Agriculture Ministry and Adjei Marfo, Chief executive officer of a state owned company.

The Commission made adverse findings against the three of the officials and exonerated one for lack of evidence. Rather infamously, the government presided over by President Rawlings at the time issued a White Paper contesting the findings made by the Commission.

“To the outside world, Rawlings maybe a hero, but to us Ghanaians, he is a crook”, one Ghanaian Insisted. To my question: “is Ghana’s successful democracy because of Rawlings or in spite of him”? He said, “Rawlings despises democracy, but as a result of local and international pressure he had no choice but to step aside”.

Towards the end of Rawlings reign, Ghanaian economy was reeling under heavy debt, high inflation and large budgetary deficit. Ghananeeded IMF/World Bank Loan to survive. (Even till date, a large chunk of Ghana Budgetary needs is still met through international aid). Rawlings was told in no uncertain terms, that Ghana must democratise.

Immediately after Obama’s speech to Ghanaian Parliament, Rawlings was interviewed by Komla, journalist.Mr. Rawlings who has become known as the accuser of everyone else except himself, said Ghana’s strides in democracy was nothing to write home about.

When given the opportunity by Komla to shed some thoughts on the visit of President Obama, he used the opportunity to lambast everyone from President Mills to Ex-President Kuffour. The Western countries from George Bush to Tony Blair were not left out.

During 'Ghana Decides 08' when Baroness Amos from Britain led a Commonwealth delegation to his house, He lambasted everyone and even questioned the essence of democracy.

When Rawlings gave a speech at Oxford this year, he questioned the use the rule of law and principles of democracy in governance.

Of course, a man that overthrew a constitutional government in 1981- which is treason; murdered military leaders and generals without due process of law; killed three civilian high court judges and engaged in rampant corruption must have no regards for constitutional rule.

Today, there is stable democracy in Ghana, but that is in spite of JJ Rawlings and not because of him. Ghanaians know what they went through to get where are currently.

They also know that the reality in Ghana is not exactly as portrayed by the outside world. Those that actually follow events in Ghanaknow that elections are still marred by violence. Violent crime is endemic. Drug gangs are on the prowl and corruption is widespread.

But their military have been severely weakened and kept busy by peace keeping activities outside the shores ofGhana – especially during Kofi Annan’s tenure as the UN Secretary General.

Moreover, Ghana is essentially a peace-loving Nation; their Hausa/Muslim population is a minority and thus kept in check. There is healthy rivalry between the major ethnic groups.


By Daniel Elombah, with contributions from Mr. Ebenezer Hayfron-Benjamin, Kofi Akosah-Sarpong and Chris Leigh

Source:http://www.elombah.com

Thursday, 3 September 2009

Slum Safari’s: Tourists pay for the squalor and stench of poverty, not development

There was uproar on twitter this morning regarding Kibera Tours, a website advertising slum tours in Africa’s largest slum. Indeed Kibera Tours is not the first nor will it be the last outfit trying to make money out of poverty. Tourists seeking such experiences can go to Dharavi in Mumbai - the biggest slum in Asia, the favelas of Rio de Janeiro, South Africa’s townships or even Mexico City’s garbage dumps.

Such escapades have been made even more popular by celebrities who sometime go by the title “Ambassadors” such as Angelina Jolie and Chris Rock, who after a tour of the ramshackle huts, having had to hold their breath while passing the open sewers, ducking the flying toilets while walking the narrow footpaths and in front of a trash heap, maybe surrounded by big bellied snot nosed children, express outrage at the poverty and make impassioned pleas for more money to assist the people. Even the Oscar award winning movie Slumdog Millionaire put comedy into the scenario.

The ironic thing is that Kibera has the most number of NGOs, INGOs, CSOs, FBOs, CBOs, students on their gap year or whatever name they go by per square foot compared to the rest of Kenya. Yet, poverty persists, maybe a prime example of the economic law of diminishing returns.

Recently at Yipe.org we met a youth group from Kibera who told us they were into “eco tourism”. When we delved into their enterprise further, there was nothing eco friendly about their business. It was slum tourism pure and simple. However the lead entrepreneur was un-phased and said why care what it’s called or what it’s about when you make US$ 20 on a bad day! – this in a place where the majority live on less than US$ 2 per day.

Reading the customer testimonials on the Kibera Tour website makes one wonder whether the inhabitants have been dehumanised. Among the customer reviews posted on the site a few stood out:

“This is what our guests said after joining about our tour, our organisation and about Kibera: ‘It feels safe’ … ‘Very interesting to see. Unique experience! Friendly people! Solidarity and happiness. Impressive!’ … ‘Impressive to see how strong the people are’ … ‘I thought first it was very dangerous, but now I think every one was friendly and helping each other'….” And the list goes on …

So what is on display: the people or the slum environment?

The reviews above teeter dangerously close to the environmental determinism movement of the late 19th and early 20th centuries that got away with saying things such as people that live in the tropics are lazy, slothful and riddled with venereal diseases amongst other slurs. To objectify the “people” of Kibera in such a way is even worse because they don’t receive the cash for the tours; the tour companies do.

Further, objectification of the people comes on the advice posted on the Kibera Tours site to the tourists:

Please don't hand out anything during the tour. So don't hand out money, sweets, pens, balloons and so on. This can create chaos and quickly may establish the assumption that tourists equal gifts”.

So, how come slum tourism seems to be the hottest business idea around, judging by the number of people involved? Well, it’s really simple. For an entrepreneur seeking to venture into such an industry the entry barriers are low; so low they are almost negligible. Kibera is an informal settlement which means it officially doesn’t exist. The sprawling slum has a reputation of being dangerous, so even police or local authority presence is low – so you can pretty much do anything without too much interference.

The startup costs are also minimal – the slum is already there and with rural-urban migration it continues to grow. No need to invest in infrastructure on that score. The “people” are also there for the tourist’s viewing, and with high fertility rates coupled with high unemployment levels (which would otherwise take them out of the slum) the total package is there.

What about attracting customers? With internet access getting cheaper one can within no time set up a slum-safari site and get interest from eager do-gooders from afar. Without much government regulation the dollars, yen, euros or whatever other currency goes direct into your pockets. In fact you don’t even need to share it with the “people”.

Demand is also inelastic, it would take a great calamity for a do-gooder’s heart to change (demand) and poverty (supply) will remain and even grow – making a perfect equilibrium point. Finally there are no sunk costs; indeed it is in the interests of such entrepreneurs that the slum stays just the way it is. Slum upgrading initiatives are thus the only threat for the business. Tourists won’t pay to tour high rise concrete apartments equipped with basic living facilities even if the people living there are the “people”. Tourists pay for the squalor and the stench of impoverishment, not development – that they do by donating money to aid agencies.

But what to do when even the larger travel companies are joining the fray? Victoria Safari’s which operates throughout East Africa has a package called “Africa Slums Tours” calling it “pro poor tourism”. From it's website pro poor tourism is described:

“the concept of pro poor tourism in Africa is not new as it has been and is being practiced in South Africa. Soweto and Shanty tours in Johannesburg and Cape Town respectively are not new tours but have been ongoing slum safaris that are changing the face of South Africa's Slum areas. Kibera Slum dwellers in Nairobi - Kenya are gradually beginning to reap the benefits of Kibera Slum Tours just as other Kenya Slums dwellers, courtesy of Victoria Safaris.”

If slum dwellers have been benefiting then wouldn’t that mean there would be no more slums to visit? Besides that, there is also the worrying aspect of the logo of Eco Tourism Kenya at the bottom of the Africa Slums Tours web page. Ecotourism Kenya is a civil society organization that was founded in 1996 to promote ecotourism and sustainable tourism practices in Kenya. Is slum tourism then sustainable tourism?

So will slum tourism continue to thrive? Of course as long as the barriers to entry remain low, and the government does its best to do nothing to uplift the lives of the millions of Kenyans living in informal settlements. And it is doing that job very well!

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