€2.7m financial loss case: Payment for ambulances made in error – Former Finance Minister
The former Minister of Finance and Economic Planning, Mr Seth Terkper, yesterday testified before the Accra High Court, in the case in which Dr Cassiel Ato Forson, the Minority Leader, and two others, are standing trial for allegedly causing €2.7 million financial loss to the state.
Mr Terkper said that payment for ambulance for which Dr Forson and two others, are standing, was made in error.
He made this testimony during cross-examination conducted by the Attorney-General (A-G) and Minister of Justice, Godfred Dame Yeboah.
Mr Terkper said the payment was made in error because the ministry was under the impression that the Stanbic Bank letters of credit was still valid under the agreement approved by Parliament.
Appearing before Justice Afia Serwaa Asare Botwe, the witness told the court that he authorised Dr Forson to set up the letters of credit against the budget allocation of the Ministry of Health.
“The letter to the Bank of Ghana requesting the setting up of the LC emanated from the Ministry of Finance and had my full authorisation,” he said.
Mr Tekper said the payment was made to avoid potential liability for the government in line with the then Attorney-General’s advice.
“On the face of it, it may look contrary to what parliament approved, but it is important to understand the principle that all loans including letters of credit are ultimately charged to the capital budget of the ministry,” he said.
Dr Forson, who is the Member of Parliament (MP) for Ajumako Enyan-Essiam Constituency, in the Central Region, is standing trial with two others for willfully causing financial loss to the state.
The two others, Sylvester Anemana, a former Chief Director at the Ministry of Health, and a private businessman, Richard Jakpa, are being prosecuted for allegedly and wilfully causing financial loss of (Euro) €2.37 million to the state, in the 200 ambulances procured for the Ministry of Health.
They all pleaded not guilty to intentionally misapplying public property and currently on bail.
Mr Yeboah, prosecuting, said that on August 7, 2014, Dr Forson wrote to the Bank of Ghana (BoG) “urgently requesting to establish the Letters of Credit for the supply of 50 ambulances amounting to €3,950,000, representing 25 per cent of the contract sum, while arrangements were being made to perfect and sign the loan agreement in favour of Big Sea.”
The A-G said on August 12, 2014, Dr Forson wrote to the Controller and Accountant-General authorising the release of GH¢806,688.75 to the Minister of Health for the payment of bank charges covering the establishment of Letters of Credit (LCs) for the supply of 50 Mercedes Benz ambulances and related services.
Mr Dame said Dr Forson further directed that the LCs should be charged to the budget of the Ministry of Health contrary to the Parliamentary approval on the funding for the supply of the ambulances.
The Attorney-General said the Controller and Accountant-General on the authority of the letters dated August 7 and 12, 2014, written by Dr Forson to the BoG authorised it to establish an irrevocable transferable LCs in the sum of €3,950,000 in favour of Big Sea.
He said by February 2015, 30 ambulances had arrived in Ghana and a post-delivery inspection revealed that they had no medical equipment, and there were other defects.
BY MALIK SULLEMANA
