Monday, June 29, 2015

‘Review tax incentives for free zone companies’

‘Review tax incentives for free zone companies’
The Policy and Advocacy Manager of Tax Justice Network – Africa (TJN-A) has urged African governments to review tax incentives for free zone companies.
“Tax incentives must apply to companies that have something to show. These companies must be able to create massive employment and other services to benefit the citizenry,” Mr Savior Mwambwa said.
He urged African governments to be cautious of signing tax treaties, he further advised them not to fall into the “trap of tax competition and tax incentives”.
“Impose withholding tax on payments to related parties or disallow deductions for payments to subsidiaries in tax havens. Put caps on deductions for services, fees, interest expenses, management fees and other inter-company charges,” Mr Mwambwa suggested and added, “Use profit split method to determine source country taxability (China, India, Indonesia etc. use it).

Review and renegotiate

Mr Mwambwa said this when he addressed selected African journalists in Nairobi, Kenya today. 
Tax Justice Network-Africa and University of Cape Town are organising a two-day training programme for 25 journalists from Africa on tax, illicit financial flows (IFFs) and domestic resource mobilisation to finance Africa’s development.
According to Mr Mwambwa, the status quo where companies enjoyed automatic tax reliefs irrespective of whether or not they were performing should either be abolished or reviewed for the interest of African citizens.
Touching on another form of tax evasion, Mr Mwambwa noted that one area companies took advantage of, was the five-year tax reprieve given to them as a form of incentive to shore up investments.
He said most of these companies set up new companies every five years for tax rebate and in other cases they resorted to rebranding and changing of names, board of directors and directors to create the impression they were coming up with new companies.
According to Mr Mwambwa, Kenya was taking steps to curtail this trend.
For instance, he noted that the Kenyan Revenue Authority was on the heels of tax evading companies.
Mr Mwambwa advised governments to train tax administrators and share best practices with fellow African countries.
He also called for the formation of regional alliances to enforce the rules that would propel Africa’s economic development.

Topics

Topics such as trade mis-invoicing, the connection between taxation and national development, foreign direct investment and Africa’s development in the 21st century, tax avoidance and investigating tax abuse by multinational companies are being discussed.
The training has been designed to improve the understanding of African media practitioners to enable them to accurately and adequately report on tax, IFFs, the general tax justice agenda and their linkages to the broader structural transformation of African economies. 
A Pan-African media award scheme for the best report on taxation in Africa will be launched after the training.

Sunday, June 28, 2015

Africa lost $1 trillion in 28 years

Africa lost $1 trillion in 28 years
Africa has lost $1 trillion through illicit financial flows (IFFs) over a 28-year period.
The loss was recorded between 1980 and 2008.
The continent is reported to be losing $50 billion annually through the illegal activities of rich individuals and multinational companies in the extractive sector mostly in oil, gas and mining.
According to the African Union/Economic Commission for Africa High Level Panel (HLP) on IFFs from Africa report, the multiplier effect of these challenges were loss of jobs, income, decent education, healthcare facilities, infrastructure and other basic needs of Africans.
“Some of the effects of illicit financial outflows are the draining of foreign exchange reserves, reduced tax collection, cancelling out of investment inflows and a worsening of poverty. Such outflows which also undermine the rule of law, stifle trade and worsen macroeconomic conditions are facilitated by some 60 international tax havens and secrecy jurisdictions that enable the creating and operating of millions of disguised corporations, anonymous trust accounts, and fake charitable foundations. Other techniques used include money laundering and transfer pricing,” the report noted.
It is at the backdrop of these glitches that a campaign to battle illicit financial flows from Africa has been launched in Nairobi with a call on African governments to collaborate to stop the annual $50 billion financial loss.
Stop the Bleeding
An interim working group (IWG) of Africa IFF Campaign platform comprising - six pan-African organisations namely Tax Justice Network-Africa (TJN-A), Third World Network-Africa (TWN-Af), Africa Forum and Network on Debt and Development (AFRODAD), the African Women’s Development and Communication Network (FEMNET), the African Regional Organisation of the International Trade Union Confederation (ITUC-Africa) and Trust Africa supported and joined by the Global Alliance for Tax Justice (GATJ), met at the Uhuru Park in Nairobi, Kenya to launch the campaign.
Dubbed “Stop the Bleeding” Africa IFF Campaign, individuals from all walks of life joined in the movement, which is aimed at preventing IFFs from Africa in order to promote development.
Speakers at the launch voiced their frustrations and urged Africans and African governments to collaborate to bring an end to the plundering of Africa’s wealth.
The Chairperson of the Pan-African MPs Network on IFFs and Tax, Ms Khanyisile Litchfield Tshabalala; the Chairperson of the International Trade Union Confederation Africa, Mr Joel Odigie, and the Head of US-Africa Network, Dr Anyango Reggy, gave brief speeches calling for an end to IFFs.
They were unanimous in stating that Africa was not a poor continent and, therefore, deserved better.
Dr Reggy disclosed that the United States of America (USA) was also a victim of IFFs with a loss of $100 billion annually.
The March
A five-kilometre walk through major streets in Nairobi was organised after the launch.
More than 80 individuals joined the coalition in the march aimed at drumming home the need for concerted efforts to protect the African purse and resources.
The procession attracted Kenyan citizens who came out of their offices to catch a glimpse of the march.
Motorists had to give way to the procession, which was under tight security.
The procession began at the Uhuru Park and was rounded off at the same park.
The organisers said the march would be replicated in other African countries.
They also disclosed that the campaign would be sustained until Africa got what it truly deserved.
Meanwhile, a training programme on tax and IFFs organised by the Tax Justice Network – Africa (TJNA) for selected African journalists has ended in Nairobi, Kenya.
Background
Illicit financial flows out of Africa have become a matter of major concern because of the scale and negative impact of such flows on Africa’s development and governance agenda.
The amount lost by Africa through IFFs is approximately double the official development assistance (ODA) that Africa receives and, indeed, the estimate may well be short of reality as accurate data does not exist for all transactions and for all African countries, the HLP report has noted.
Preliminary evidence showed that taking prompt action to curtail illicit financial outflows from Africa would go a long way to provide a major source of funds for development programmes on the continent.
“One of the keys to achieving success is the adoption of laws, regulations and policies that encourage transparent financial transactions,” said the report.

Thursday, June 25, 2015

Jail Korle Bu CEO, Chairman for contempt

Dr. Gilbert Buckle
Dr. Gilbert Buckle
The former Director of the Pharmacy Department of the Korle Bu Teaching Hospital has filed contempt proceedings at the Human Rights Court against the Chief Executive Officer (CEO) of the hospital and two others.
Mrs Elizabeth Bruce wants the CEO, Dr Gilbert Buckle, and Chairman of the Board of Directors, Prof. Anthony Mawuli Sallar, to be convicted and imprisoned for bringing the court’s authority into disrepute.
The hospital has been attached as an entity.
The application for committal for contempt, filed on the applicant’s behalf by her lawyer, Mr Godfred Yeboah Dame, wants the court to imprison Prof. Sallar and Dr Buckle.
Another relief being sought from the court is the imposition of “a very heavy fine” on the hospital as an entity.
Mrs Bruce, in April 2015, took legal action after she was interdicted in January 2015 for allegedly misappropriating funds at the Pharmacy Department.
The court was yet to hear the matter, after the hospital had filed its defence, but the respondents proceeded to dismiss her in June 2015.
Hearing of the contempt application has been fixed for July 8, 2015.

Affidavit in support

An affidavit in support of the filed motion for contempt sworn by Mrs Bruce and mailed to the Daily Graphic via the Internet averred that “following an unlawful ‘forensic audit’ exercise by a private firm of chartered accountants pursuant to an unlawful appointment by the Minister of Health, I was unlawfully interdicted on 29th January, 2015 by the respondent herein, without recourse to the mandatory provisions of the Ghana Health Service and Teaching Hospitals Act, 1996 (Act 525) and the Civil Service Regulations, 1960 (L. I. 47)”.
The affidavit noted that after her interdiction, an Administrative Enquiry Committee was unlawfully set up by the respondents to establish her culpability, if any, in the findings of the forensic audit exercise.
Giving the background to the case, it said on April 10, 2015, the applicant instituted a civil action for a number of reliefs, which included an order for her reinstatement.
It noted that the respondents were fully aware of the pendency of the suit but nevertheless proceeded to dismiss her through the issuance of a press release dated June 17, 2015.
“That I am advised by counsel and verily believe same to be true that the press statement purporting to dismiss me issued by the board and management of the 3rd respondent herein, of whom the 2nd and 3rd respondents herein are their respective heads, in the pendency of the instant action, was calculated at interfering with and obstructing the due administration of justice and, in the event, bring the authority of a court of competent jurisdiction into disrepute,” the affidavit in support of the motion noted.
Prof. Sallar, Dr Buckle and the hospital are the first, second and third respondents, respectively.

Validity of dismissal

It noted that the validity of the basis of the applicant’s purported dismissal was the very subject matter of the action, which was currently pending before the court and “a fact all the respondents were undoubtedly aware of”.
It continued, “I am further advised by counsel and verily believe same to be true that the act of the respondents in dismissing me while the substantive suit seeking to question the validity of every aspect of the purported disciplinary measures being taken by 3rd respondent was pending was intended to frustrate me from a pursuit of the action and also prejudice the hearing and fair determination of the suit.
“That I am advised by counsel and verily believe same to be true that the conduct of the respondents was wilful and clearly intended to subvert or overreach any judgement to be rendered by this Honourable Court and same was out of disrespect for the court’s authority in this suit.”
It said Prof. Sallar and Dr Buckle’s “wilful disregard of the authority of this court makes them inexcusably liable to be committed to prison, while a hefty fine ought to be imposed on the 3rd respondent in order to vindicate the undoubted authority of the court”.

Tuesday, June 23, 2015

Dzamefe Commission of Inquiry report can be contested after six-months — AG

Dzamefe Commission of Inquiry report can be contested after six-months — AG
The Attorney-General and Minister of Justice, Mrs Marietta Brew Appiah-Opong
Persons directly affected by the commission of inquiry into matters relating to the participation of the Black Stars in the Brazil 2014 World Cup tournament cannot contest the final report of the commission until after six months.
Additionally, parties can appeal the commission’s findings three months after the six-month period has elapsed.
Therefore, any individual or organisation that has been cited in the report but feels aggrieved can take legal action from December 2015.
The Attorney-General and Minister of Justice, Mrs Marietta Brew Appiah-Opong, in an online interview with the Daily Graphic, said those conditions had been captured under Article 280 of the 1992 Constitution.
Article 280 of the 1992 Constitution on commissions of inquiry, particularly clauses (2), (3), (5) and (6), state as follows:
“(2) Where a commission of inquiry makes an adverse finding against any person, the report of the commission of inquiry shall, for the purpose of this Constitution, be deemed to be the judgement of the High Court; and accordingly, an appeal shall lie as of right from the finding of the commission to the Court of Appeal.
“(3) The President shall, subject to Clause 4 of this article, cause to be published the report of the commission of inquiry, together with the White Paper on it, within six months after the date of the submission of the report by the commission.
“(5) A finding of the commission of inquiry shall not have the effect of a judgement of the High Court, as provided under Clause (2) of this article, unless:
(a) six months have passed after the finding is made and announced to the public; or
(b) the government issues a statement in the Gazette and in the national media that it does not intend to issue a White Paper on the report of the commission, whichever is the earlier.
“(6) The right of appeal conferred by Clause (2) of this article on a person against whom a finding has been made shall be exercisable within three months after the occurrence of either of the events described in Clause (5) of this article or such other times as the High Court or the Court of Appeal may, by special leave and on such conditions as it may consider just, allow.”
The Attorney-General and Minister of Justice said in effect Article 280 (5) meant that “the report of the commission of inquiry will only have the effect of a judgement of the High Court six months after the finding is announced to the public”.

Background


The Assembly Press, over the weekend, announced that the Dzamefe Commission Report was ready for sale to interested persons and organisations.
The Managing Director of the State Publishing Corporation, owners of the Assembly Press, Mr David Dzreke, told the Daily Graphic that the Attorney-General’s Department presented the report to the Assembly Press in hard copy on Tuesday, June 16, 2015. 
A copy is being sold for GH¢120.

The White Paper


The government earlier this month released a White Paper on the report of the Commission of Inquiry into matters relating to the participation of the Black Stars in the 2014 World Cup in Brazil.
Mrs Appiah-Opong said the government accepted most of the recommendations of the commission.
She said where the government had not accepted the commission’s recommendations, it had stated so and given reasons for the non-acceptance.
“Where the government has accepted the recommendations in modified form, this has also been stated and the reasons for the modification have been given,” she added.
According to her, the next step after the issuance of the White Paper is the implementation of the accepted recommendations.

Friday, June 19, 2015

GYEEDA trial: Abuga Pele, Asibit asked to open defence

GYEEDA trial: Abuga Pele, Asibit asked to open defence

The Financial Division of the High Court has ordered former boss of the Ghana Youth Employment and Entrepreneurial Development Agency (GYEEDA),  Abuga Pele and another, to open their defence for causing financial loss of GHC 4.1 million to the state.
Pele and Philip Akpeena Assibit, a private businessman are to open their defence on July 13, 2015.
Lawyers for the two had filed a submission of no case praying the court to free them but the trial judge, Mrs Justice Afia Serwaa Asare-Botwe, held a different view on the grounds that the prosecution had established a prima face case against them.
The two kept their composure and left the courtroom in the company of their lawyers Carl Adongo and Raymond Bagnabu.
Pele was alleged to have recommended payment of the said amount to Assibit, with the explanation Assibit had secured a $65 million facility from the World Bank for a Youth Enterprise Development Programme (YEDP), trained 250 youth as well as conducted tracer studies for an exit strategy for the said youth.
But the court held that the prosecution had led evidence to prove the said claims were false and for that reason, it was important for the accused persons to open their defence to discredit the evidence led by the prosecution.
The defence team had also argued Assibit never held himself as a consultant but the trial judge read documents and memos to prove he Assibit) had indeed held himself as such at all material times, and had even signed documents to that effect.
These and other evidence led by the prosecution, according to the court, had shifted the burden on the accused persons to prove their innocence.
Background
A Chief State Attorney, Mrs Evelyn Keelson, led the prosecution to call seven witnesses. She announced the closure of the prosecution’s case on April 20, 2015, the lawyer for Pele, Mr Adongo, finished cross-examining the investigator in the case.
The investigator, Mrs Diana Adu-Anane, began testifying on March 17, 2015.
The other prosecution witnesses were Alhaji Nuru Hamidan, formerly of GYEEDA, Mohammed Pelpuo also of GYEEDA, Ms Gladys Ghartey of the Ministry of Finance and Economic Planning (MOFEP), Mr Clement Humado, a former Minister of Youth and Sports, Dr Sulley Ali Gariba of the Management Productivity and Development Institute (MDPI) and Mr Eric Sunu, an internal auditor.
Charges
The state has accused Assibit of putting in false claims that he had secured a $65-million World Bank funding for the creation of one million jobs for the youth, resulting in the government parting with GH¢4.1 million.
Pele is alleged to have acted in a manner resulting in the loss of the amount to the state.
Pele has pleaded not guilty to two counts of abetment of crime, intentionally misapplying public property, and five counts of wilfully causing financial loss to the state.
Assibit has also pleaded not guilty to six counts of defrauding by false pretences and five counts of dishonestly causing loss to public property. 
They are both on bail.
Facts of the case
The facts of the case were that in 2009, Pele, on assumption of office as the National Co-ordinator of then NYEP, entered into a contract with Assibit, a representative of Goodwill International Group (GIG).
Under the terms of the agreement, the NYEP was described as the ‘host’, while the GIG was tagged as the ‘strategic partner’.
According to the prosecution, the parties agreed to combine their labour, properties and skills for the purpose of engaging in resource mobilisation, investor sourcing, management consulting, capacity building, career development, training services, among other jobs.
Per the agreement, the GIG was responsible for resource mobilisation and undertook to provide preliminary funds for the development of the programme, while the parties agreed to equally share the profits that would accrue out of the agreement.
“Meanwhile, there is nothing on record in terms of business proposals or documents forming the basis of engaging the GIG as a strategic partner,” the prosecution stated.
Assibit, between May 2011 and May 2012, “made a number of payment claims for consultancy services he claimed to have rendered to the NYEP, ranging from the provision of exit plan and strategy for all NYEP modules, established a Youth Enterprise Development Project which he claimed to have used in securing approval for a World Bank facility of $65 million for the NYEP and had recruited and trained 250 youth to support the implementation of what he referred to as the World Bank-funded Youth Enterprise Development Programme (YEDP),” it said.
False Claims
Continuing with the evidence gathered against the accused persons, Mrs Keelson told the court that the representations put forward by Assibit were supported by Pele, who used them as the basis for justifying, recommending and approving a total amount of GH3,330, 568.53, the equivalent of $1,948,626.68, to Assibit, claiming, among others, that, Assibit’s work had directly resulted in a World Bank support of $65 million for the NYEP.
“Meanwhile, investigations revealed that all these representations were false,” she pointed out, and further indicated that investigations revealed that the GIG was never appointed a consultant to the NYEP.
The prosecution said Assibit had failed to provide any exit plan and strategy for the NYEP modules, adding that Assibit had again not conducted any financial engineering for the approval of a World Bank facility of $65 million, as he had claimed and been corroborated by Pele.
“Indeed, there has not been any approval by the World Bank of $65 million for the NYEP,” it pointed out, and said investigations also discovered that in August 2012, Assibit was paid an additional GH¢835,000 under the guise of what was referred to as “tracer studies” for the World Bank as the last requirement needed to be met for the approval of the $65 million facility.
According to the prosecution, Assibit’s claims on the tracer studies were also supported by Pele and grounded upon which Pele approved the payment of the amount to Assibit.
Pele’s actions, according to the prosecution, had caused financial loss to the state and it was based on those facts that the accused persons had been put before the court.

Tuesday, June 16, 2015

World Bank approves $700m for gas exploration in Western Region


• Mr Emmanuel Kofi-Armah Buah

Ghana's oil and gas industry has received a boost following the World Bank’s approval of $700 million for exploration of oil and gas offshore Cape Three Points in the Western Region.
Italy's largest oil company, ENI Spa, and its partners are expected to utilise the amount for drilling and other works.
The Minister of Energy and Petroleum, Mr Emmanuel Armah-Kofi Buah, told the Daily Graphic in an interview in Accra at the weekend that “the government is excited because the development of Ghana’s oil and gas fields would go a long way to further boost the economy”.
Ghana took another major step towards the realisation of energy and power security with the signing of an agreement for the development of the Offshore Cape Three Points (OCTP) integrated oil and gas project in January 2015 at the Peduase Lodge.
The $7 billion project, being undertaken by ENI Spa in collaboration with Vitol Energy, would see the development of the Sankofa and Gye Nyame fields to provide substantial gas to operate the thermal power plants for 20 years.

World Bank

Correspondence from the World Bank to the beneficiaries of the facility indicated that the approval was given following a senior management discussion on the OCTP project late last month.
ENI Spa, Vitol, the Ghana National Petroleum Corporation (GNPC) and the government of Ghana are expected to study the terms and conditions of the proposed World Bank guarantees to pave way for final discussions on the guarantee package.
The Board is expected to consider the approval on July 30, 2015.

Project specifics

Oil production from the OCTP is estimated at 80,000 barrels per day and will start in 2017, while gas comes on stream in 2018.
The project will deliver 170 million cubic feet of gas per day and it is expected to generate an additional 1,100 megawatts of power for Ghana.
Gas will be processed and transported via a dedicated pipeline to onshore gas-receiving facilities located near Sanzule, a village on the coast in the Western Region. 
The gas will also be compressed and injected into the Western Corridor Gas Pipeline for transportation to industrial customers in Ghana.

Crude oil will also be stored in the FPSO and offloaded to tankers for sale on the international market.
GNPC is representing Ghana on the project.

Landmark event

President John Dramani Mahama described the signing of the agreement in January 2015 as "a landmark event in the development of oil and gas in Ghana," as it would lead to energy and power security for the nation.
The agreement was signed among the oil companies, the GNPC and the Ministry of Petroleum.
He said a survey on Ghana had revealed that energy was the most binding constraint on the economy.

The Chief Executive of the GNPC, Mr Alex Mould, and the Minister of Petroleum, Mr Buah, signed for Ghana, while the Executive Vice-President of ENI Spa in charge of Sub-Saharan Africa, Mr Ciro Antonio Pagano, and the President and CEO of Vitol, Mr Tan Taylor, signed for ENI and Vitol respectively.

ENI Vice-President

Mr Pagano said the fact that the project was coming on board at a difficult time for the oil and gas industry, due to the falling prices, was a testimony of the trust the company had in the Ghanaian economy.

Vitol’s CEO

Mr Taylor said the company was proud to be part of such an important venture.
"Vitol has been supplying energy to Ghana for over 25 years and we are delighted to be able to contribute to the development of Ghana’s economy through a major domestic energy solution," he said.


Motorists decry fuel price increases

Mr Moses Asaga - NPA boss
Mr Moses Asaga - NPA boss
The full deregulation of the downstream petroleum industry took effect yesterday with a four per cent increment in petroleum prices.
But drivers have decried the increase and have asked the Ghana Road Transport Coordinating Council (GRTCC) and the Ghana Private Road Transport Union (GPRTU) to adjust transport fares because they are suffering.
The new price has been highlighted on the notice boards of the Oil Marketing Companies’ (OMCs’) outlets across the country.
While the Ghana Oil Company Limited (GOIL) maintained the old price of GH¢3.33 per litre for petrol, the other OMCs have increased their prices.
The new price indicated on the notice boards of other OMCs is GH¢3.46 pesewas for a litre of petrol.
Explaining the rationale behind the full deregulation of the downstream petroleum sector to the Daily Graphic in Accra Tuesday, the Chief Executive Officer (CEO) of the National Petroleum Authority (NPA), Mr Moses Asaga, said although the NPA had given full backing to the OMCs and Bulk Oil Distributors (BDCs) to set their own prices, his outfit would continue to monitor their activities to ensure the protection of consumers.
“What we are saying is that in this first step of full deregulation of ex-pump price, there is an indicative price setting based on international market price for petrol, diesel and liquefied petroleum gas (LPG) and the depreciation of the cedi which are the factors that led to the four per cent increment,” Mr Asaga explained.
He said the four per cent increment was the maximum price at which the OMCs could set their prices but indicated that they reserved the right to sell below the indicative price.

Competition


“This new measure would create competition in the industry but the NPA will continue to give the indicative price and direct all OMCs to go by it,” Mr Asaga said.
Mr Asaga said the OMCs would do the computation of the prices based on existing indicators and later forward their prices to the NPA for publication.

Price Uniformity


Under the NPA Act, prices of petroleum products are supposed to be uniform across the country, irrespective of whether or not more funds are expended in transporting those products.
Per the new arrangement, the continuation of price uniformity would be OMC-specific. Thus, prices should be the same at all departments.
Mr Asaga gave the assurance that the NPA would protect the public interest and urged the Consumer Protection Agency (CPA) to be active.
A press release issued by the NPA in Accra last Monday stated that the NPA would monitor the application of the Prescribed Petroleum Pricing Formula to ensure that all petroleum service providers applied the formula in the right way and that defaulters would be duly sanctioned.
In Accra, Emelia Ennin Abbey reports that some commercial drivers described the four per cent increase in fuel prices as unreasonable, since they were yet to increase transportation fares since the last upward adjustment over a month ago.
The motorists said commercial drivers were directed to not increase transport fares following the increase in the prices of fuel but apart from the increase in fuel prices, the prices of some products such as vehicle spare parts and lubricants had also gone up.
The development, they said, had resulted in a depletion of their resources since their expenditure had gone up but their income had dwindled.
“We were waiting for our leaders to come up with a review of transportation fares but while that was yet to happen the four per cent increase has been announced. Why should we be made to suffer all the time,” asked Nana Kwesi Agyeman, one of the drivers.
In an interview, Mr Agyeman who has been plying the Accra-Kumasi road for the past 18 years, criticised the NPA for deregulating the fuel supply industry.
“It is like blank cheques for whoever feels the need to balance the books by plundering drivers' pockets,” he said.
However, another driver, Mr Yaw Asumani, a member of the Accra-Nkawkaw GPRTU Circle Neoplan branch, was of the view that the deregulation would ensure transparency in the industry.
“The point we are making is that drivers can now see what is happening between wholesale fuel prices and prices at the pump. I absolutely think there will be more transparency.”
He also said as oil marketing companies display their pump prices, "It would be much fairer, and allow motorists to decide where to buy their fuel. You will know who is trying to make an honest living and who is being greedy. It would be helpful to the motorists.”

Regions


Reports from the regions yesterday indicated that while some fuel stations were charging old prices, others had effected the new prices.
From Bolgatanga, Vincent Amenuveve reports that some fuel stations in the Bolgatanga municipality were waiting for confirmation from their superiors in Accra before charging the new prices.
A visit to some fuel stations in the municipality showed that they were still charging the old fuel prices.
At the Total and Nasona fuel stations, for instance, the fuel attendants were still charging the old prices.
A gallon of petrol sold at the old price of GH¢14.985, while diesel sold at GH¢14.58 at the Total fuel stations.
Some filling stations in Koforidua are selling one litre of petrol at GH¢3.47 and diesel at GH¢3.37, compared to the previous GH¢3.33 and GH¢3.45, respectively reports George Folley.
At the Nasona fuel station, petrol was sold at GH¢3.45 per litre, while diesel remained a the old price.
The prices at all the Total fuel stations had not been changed. 
Meanwhile some transport owners interviewed by the Daily Graphic called on the hierarchy of the GPRTU to adjust fares upwards since most of them were suffering.

Sunyani

In the Sunyani municipality, Emmanuel Adu-Gyamerah reports that some fuel stations responded to the full implementation of the deregulation policy by slightly adjusting their prices upwards, while others were yet to increase their prices.
At the Total fuel station, the Assistant Manager, Mr Richard Boahen, told the Daily Graphic that their price of petrol had been increased from GH¢3.33 per litre to GH¢3.47, while the price of diesel had also been increased from GH¢3.24 to GH¢3.37 per litre.
Kerosene also increased from GH¢3.19 per litre to GH¢3.32 per litre.
At the Goil and Shell fuel stations near the Poly Roundabout there had not been any increase at the time of the reporter's visit but a fuel attendant at the Shell fuel station, Mr Ruben Ayitey, explained that the manager was at a meeting with his colleagues.
A taxi driver who pleaded anonymity said "we cannot wait for increases in fares to be announced from Accra before we start increasing our fares."
From Ho, Tim Dzamboe reports that almost all the fuel stations have increased the prices of their products.
Accordingly, a litre of diesel which was selling at GH¢3.24 was now selling at the GH¢3.37, while a litter of petrol was selling at GH¢3.33 was now selling at GH¢3.47.

Stop ‘Rambo style’ demolition of fuel stations — OMCs

A new fuel station demolished at Mile 7 in Accra.
A new fuel station demolished at Mile 7 in Accra
The Association of Oil Marketing Companies (OMCs) has slammed what it termed “Rambo style” demolition of fuel filling stations by state officials in some parts of Accra.
The Chief Executive Officer (CEO) of the AOMCs, Mr Kwaku Agyemang-Duah defended the affected filling stations as having been issued licences by the appropriate regulatory authorities to operate.

At a news conference in Accra at the weekend he said the closure of fuel filling stations had the innate result of culminating in “chaos and anarchy” in the society and inflaming passion among the citizenry and, thereby, create disaffection for OMCs and Liquefied Gas Marketers (LPGMs).

The Minister of Environment, Science and Innovation (MESTI), Mr Mahama Ayariga, last week led a team to demolish some filling stations perceived to be on watercourses or operating without licence but Mr Agyemang-Duah noted that “OMCs/LPGMs are neither monsters nor criminals but are Ghanaians making a living by legally investing in the petroleum industry.”
According to the industry co-ordinator, “the blame game at this stage of our national life rather exacerbates the already precarious situation.”

He was of the view that the situation needed a “deep-seated thought, a thorough, unbiased and unfettered investigations to identify the root causes while consolidating or improving the existing industry standards for public safety and assurance.

Processes


Walking journalists through the processes leading to the grant of licence for the running of a fuel filling station, Mr Agyemang-Duah said agencies such as the Town and Country Planning, Metropolitan, Municipal and District Assemblies (MMDAs), the Ghana Standards Authority (GSA), the Ghana National Fire Service (GNFS) and the NPA played various roles in the licensing regime and for that reason, it was impossible for any filling station to operate without licence.
He nonetheless indicated the OMCs’ support for the government to ensure safety measures were adhered to by OMCs.

‘Stay away’


Highlighting new measures being implemented by OMCs to protect life and property, Mr Agyemang-Duah reminded the general public that petroleum retail outlets were restricted areas and for that reason, any person who did not have any business there should not venture nearing them.

“No one should smoke or use smoking materials in the hazardous area around the dispenser; the engine of the vehicle to be filled should be switched off, desist from making the retail outlets a parking lot and an emergency shelter and consumers should observe all safety signs at retail outlets,” Mr Agyemang-Duah said.
The industry co-ordinator disclosed that the AOMCs had a committee on safety and health to monitor the activities of its members and was, therefore, of the view that there was no need for the government to engage an auditor to begin nationwide audit of all filling stations.

Siting of retail outlets


Tackling concerns about the siting of retail outlets in residential areas, Mr Agyemang-Duah said the industry had been in existence in the country for more than 50 years and that most filling stations were in existence before residential facilities sprang up around them.
Aside from that, he explained that retail outlets were sited after members had met regulatory and other requirements.
He declined to comment on the probable cause of the fire outbreak at Circle on June 3 but advised Ghanaians to desist from making statements on issues they knew little or nothing about.

“Such flammable utterances, innuendos and castigations have the tendency to malign and destroy the OMCs/LPGMs who have invested in these service stations and have been rendering very meaningful services to the country at large for more than 50 years,” Mr Agyemang-Duah pointed out.

Asked if the AOMCs welcomed moves by the government to fully deregulate the downstream petroleum industry, Mr Duah-Agyemang answered in the affirmative.
He extended the association’s condolences to the bereaved families and said its members would in due course announce a package for the flood fire victims.

Sunday, June 14, 2015

Goil fuel station graded 'A' by NPA

• The GOIL fuel station at the Kwame Nkrumah Circle damaged by the June 3 fire

The GOIL Filling Station at the Kwame Nkrumah Circle in Accra that blew up on June 3, 2015, killing scores of people as a result, scored an A after a recent inspection conducted on it by the National Petroleum Authority (NPA).
“In February 2015, the NPA did a complete audit of the station. The station scored 93 per cent, thereby making it a grade A Station,” the Managing Director of GOIL, Mr Patrick Akorli, has stated.
Addressing journalists at a press conference organised by the Association of Oil Marketing Companies (AOMCs) at the weekend, Mr Akorli pulled out documents to prove his claim.
The press conference was addressed by the Chief Executive Officer (CEO) of the AOMCs, Mr Kwaku Agyemang-Duah, to state the association’s position on recent developments on the petroleum downstream industry.
Mr Akorli said the fuel station, which was the third highest selling station on GOIL’s list, was established in 1963.
“It underwent a major renovation in 2015,” he disclosed.
Pressure tests, which are conducted every five years, were performed on that filling station in 2013.

Friendly station

A visibly troubled Mr Akorli declined to comment on what had caused the fire, as a sign of respect to investigators and grieving families, but was not happy with pronouncements made by an official of the Ghana National Fire Service (GNFS), who cited the station as the source of the fire that swept through the station and adjoining buildings during a downpour.
“We cannot conclude the fire started from the station. We sympathise with the bereaved families. We lost staff and we are grieving.
“We are not happy; we are not criminals. People should not rub salt into injury,” he stressed.

Inspection

The NPA inspects fuel filling stations twice a year and at random when the need arises.
The documents Mr Akorli showed to journalists indicated that checks were made on underground storage tanks, pumps and dispensers.
Permits from the Environmental Protection Agency (EPA), the NPA licence, the availability of a Ghana Standards Authority (GSA) certificate for dispensing pumps, verification stickers on dispensing pumps, fire certificates and the availability of building permits and insurance certificates were all inspected and cleared by the NPA.
The technical, infrastructure, waste management storage and disposal, pollution prevention and controls and occupational health and safety requirements of the filling station were all checked and passed by the NPA.

Friday, June 12, 2015

Ghana wins appeal against US firm in relation to Accra Sewer Dev Project

Mrs Marietta Brew Appiah-Opong  — Attorney-General and Minister of Justice.
Marietta Brew Appiah-Oppong - Attorney General of Ghana and Minister for Justice of Ghana
The Court of Appeal of the United States of America has thrown out an appeal brought by a US company against the Government of Ghana which challenged the dismissal of a $425-million suit against the state.
Ghana, on December 31, 2013, won a landmark case in a US court in which the company, Tjgem LLC, had sued the country for punitive damages totalling $425 million.
The case, which was related to the award of a contract to the Accra Sewer Development Project, also had the Accra Metropolitan Assembly (AMA) and its chief executive, the Minister of Finance and Economic Planning and Conti Construction Company Inc. of the US as co-defendants.
Tjgem LLC filed the case at the United States District Court of Columbia on March 22, 2013, alleging common law fraud, racketeering and economic espionage, conspiracy to defraud and misappropriation and conversion of trade secrets against the Government of Ghana and its officials.
But in its judgement on December 31, 2013, the court, with Judge Beryl A. Howell presiding, dismissed the case, saying “the claims by Tjgem are at best those of a disappointed bidder that failed to win a contract with a foreign government”.

The dismissal

In a unanimous decision, the appeal court held that “the order of the district court be affirmed in its entirety. The district court correctly concluded that it lacked subject-matter jurisdiction and dismissed the complaint pursuant to Federal Rule of Civil Procedure 12(b)(1)”.

Preamble

Tjgem LLC, a domestic corporation, was formed to pursue infrastructure projects in Ghana.
It entered into discussions presumed to be negotiations for a contract to reconstruct the Accra sewer system but ultimately was not awarded the contract.
It filed a suit alleging that the Republic of Ghana and the defendants committed a number of torts, but the district court dismissed the complaint for lack of subject-matter jurisdiction under the Foreign Sovereign Immunities Act (FSIA).
According to the court of appeal, “Tjgem fails to show that the district court erred in concluding the conduct alleged in the complaint, as supported by the attached exhibits, did not come within the FSIA commercial activity exception.
The legal theories underlying the complaint are difficult to discern, but with respect to the claim that a misappropriation of trade secrets occurred in the United States, there is no proffered evidentiary basis to support such a claim.
“Where jurisdiction depends on plaintiff asserting a particular type of claim, the claim may not be immaterial and made solely for the purpose of obtaining jurisdiction.”
According to the Court of Appeal’s decision, a copy of which is available to the Daily Graphic, “Tjgem pointed to nothing more than bare assertions and a brief reference in an Internet news story to a memorandum of understanding being signed in the United States. “Nothing in the record indicates the memorandum involved Tjgem’s trade secrets or that any trade secrets were disclosed by any of the defendants to the Export-Import Bank of the United States,” it said.

Financial Harm

The court further argued that financial harm to a US business abroad was not a direct effect for purposes of the FSIA commercial activity exception.
It held that “Tjgem’s theory that Ghana has waived its sovereign immunity” was not raised in the district court and was, therefore, forfeited, adding: “In any event, Tjgem points only to Ghana’s waiver of sovereign immunity in its own courts. It proffers no evidence of a waiver of immunity in the United States’ courts, which have uniformly concluded that the domestic waiver of sovereign immunity does not imply such waiver in other countries’ courts.”
The court indicted Tjgem for “failing to show that the district court abused its discretion by dismissing the non-sovereign defendants, pursuant to Federal Rule of Civil Procedure 19(b)”.

Gratitude

Commenting on the decision, the Attorney-General and Minister of Justice, Mrs Marietta Brew Appiah-Opong, expressed Ghana’s gratitude to the external solicitors, Dorsey and Whitney, represented by Juan Basombrio, for their hard work.

Tuesday, June 9, 2015

Audit 2,500 fuel stations in the country; CBOD calls on government

Mr Senyo Hosi- Chief Executive Officer of the Chamber of Bulk Oil Distributors (CBOD) presenting a cheque for GHC20,000 to Mr Nortey Dua (left) of Joy FM
Mr Senyo Hosi- Chief Executive Officer of the Chamber of Bulk Oil Distributors (CBOD) presenting a cheque for GHC20,000 to Mr Nortey Dua (left) of Joy FM
The Chief Executive Officer of the Chamber of Bulk Oil Distributors (CBOD), Mr Senyo Hosi, has called on the government to conduct an immediate safety audit of all fuel filling stations and fuel storage depots across the country.
He said that would assist in bringing to the fore all shortcomings at filling stations and storage dumps for them to be addressed for the good of consumers.
“We urge the government to conduct a thorough safety audit of all facilities to prevent the Circle GOIL tragedy from recurring,” Mr Hosi noted.
Making the call against the backdrop of the Wednesday, June 3, 2015 fire outbreak that resulted in the death of more than 150 people, he said, “What happened was most unfortunate and it is important that the government take steps to ensure it never occurs again.”
Mr Hosi made the call when he presented a cheque for GHc20,000 to the fund set up by the Multimedia Group Limited to support the surviving victims of last Wednesday’s flood and fire tragedy which also displaced many Ghanaians, rendering them homeless.

Safety paramount

While emphasising the need to preserve the safety of fuel station workers, the public and motorists, Mr Hosi said the safety audit would ensure that the highest safety standard was maintained at all material times.
“Every life is important and we must all be vigilant, observe happenings at filling stations and report any anomaly to the authorities for redress.
“What happened was very unfortunate and tragic. It is our collective duty as Ghanaians to ensure it never occurs again. That duty includes reporting any form of irregularity at fuel filling stations and storage sites,” he noted.

The safety audit

There are currently more than 2,500 fuel filling stations and fuel storage sites in the country.
According to Mr Hosi, it was not adequate for pressure checks to be conducted every five years.
“The Ministry of Energy, the National Petroleum Authority (NPA) and the Environmental Protection Agency (EPA) must be up and doing to ensure this tragedy does not occur again,” he stressed.

CBOD donates

“Safety is paramount. As BDCs, we don’t operate filling stations. We feed the Oil Marketing Companies (OMCs) who operate fuel filling stations. But as stakeholders, we felt the need to assist the victims of this tragedy. We are, therefore, donating GHc20,000 to help in this noble gesture.
“We hope and pray that other corporate bodies will donate to a worthy cause,” Mr Hosi added.
He lauded the Multimedia Group, individuals and all persons who had so far contributed to the fund.

July 2 ultimatum

Meanwhile, families of persons who died from last Wednesday’s flood and the fire disaster at the GOIL Fuel Station have up to July 2, 2015 to claim the bodies.
According to the Manager of the Korle Bu Mortuary Department, Mr George Denkyi, the law permitted unidentified bodies to be buried within 28 days of being received at the morgue.
In effect, bodies at other public health facilities will be affected by this ultimatum.
He explained that a mass burial would be held for the unclaimed bodies after July 3, 2015.
“Post mortem examination will be performed on the bodies to find the cause of death. The unclaimed ones will then be buried in a mass grave after the July 2 deadline,” Mr Denkyi told the Daily Graphic in Accra Monday.

Bodies identified

So far, the remains of 64 people who died from the disaster at the GOIL Station at the Kwame Nkrumah Circle in Accra have been identified.
The 37 Military Hospital received 65 bodies, out of which 32 have been identified, while two are charred beyond recognition.
Four persons are currently receiving treatment at the Intensive Care Unit (IOU) of that hospital.
“There are 65 bodies in our morgue right now. They are 22 females and 43 males, while 22 victims are currently on admission. A male child is among those admitted,” a source at the hospital disclosed.

The Police and the Korle-Bu hospitals

Fifty-seven bodies are in the Police Hospital morgue, with families having managed to identify 30 bodies as of the time of going to press yesterday.
The Korle Bu Teaching Hospital received 11 bodies. Six of the deaths were flood-related.

Monday, June 8, 2015

Electrical fault caused Defence Ministry fire - officials


Electrical fault caused Defence Ministry fire - officials

The timely intervention of personnel from the Ghana National Fire Service (GNFS) saved the Ministry of Defence (MOD) building in Accra from destruction Monday morning.
It took fire tenders less than 10 minutes to extinguish what could have been a major fire outbreak atop the government building, which is valued at several million cedi. The fire resulted in no injuries.
An explosion from an air conditioning unit on the roof nearly resulted in a fire outbreak, according to the Deputy Chief Fire Officer in charge of Operations at the GNFS, Mr William Jesse Mensah. The GNFS received a distress signal about the explosion at exactly 10 AM; it took fire engines five minutes to arrive at the scene.
Officers and staff of the Ghana Armed Forces (GAF) rushed out of their offices to an assembly point while fire crews operated.
Situation under control
Briefing journalists at the scene, Mr Mensah said the GNFS responded expeditiously, and in the process, identified the unit that was on fire.
“We used our turntable ladder to douse the fire... The situation is under control and staff can go about their duties,” Mr Mensah assured.
Attributing the explosion to an electrical fault, Mr Mensah urged the members of staff not to turn on the air conditioners until an electrical engineer assessed the extent of damage and replaced the spoilt unit He advised the staff to open the windows to access fresh air until the air conditioning unit was fixed.
Minister assures
The Minister of Defence, Mr Benjamin Kunbuor, addressed the staff members who gathered at an assembly point during the incident, and assured them that the situation was under control.
He commended the GNFS for its quick response, and counseled the MOD staff  members to go on with their duties.

Oil distributors call for audit of fuel stations


The remains of the Goil filling station at Nkrumah Circle in Accra where over 100 people died from fire last Wednesday

The Chief Executive Officer of the Chamber of Bulk Oil Distributors (CBOD), Mr Senyo Hosi, has called on the government to conduct an immediate safety audit of all fuel filling stations and fuel storage depots across the country.
He said that would assist in bringing to the fore all shortcomings at filling stations and storage dumps, and the need to address them for the good of consumers.
“We urge the government to conduct a thorough safety audit of all facilities to prevent the Circle GOIL tragedy from recurring”, Mr Hosi noted.
Making the call against the backdrop of the Wednesday, June 3, 2015 fire outbreak that resulted in the death of more than 100 people, he said, “What happened was most unfortunate and it is important that the government take steps to ensure it never occurs again.”
Mr Hosi made the call when he presented a cheque for GHc20,000 to the fund set up by the Multimedia Group Limited, to support the surviving victims of last Wednesday’s flood and fire tragedy, which has also displaced many Ghanaians, rendering them homeless.
Safety paramount
While emphasising the need to preserve the safety of fuel station workers the public, and motorists, Mr Hosi said the safety audit would ensure that the highest safety standards are maintained at all times.
“Every life is important and we must all be vigilant, observe happenings at filling stations and report any anomaly to the authorities for redress.
“What happened was very unfortunate and tragic. It is our collective duty as Ghanaians to ensure it never occurs again. That duty includes reporting any form of irregularity at fuel filling stations and storage sites,” he noted.
The safety audit
According to Mr Hosi, it was not adequate for pressure checks to be conducted every five years.
“The Ministry of Energy, the National Petroleum Authority (NPA) and the Environmental Protection Agency (EPA) must be up and doing to ensure this tragedy does not occur again,” he stressed.
There are currently more than 2,500 fuel filling stations and fuel storage sites in the country.
CBOD donates
“Safety is paramount. As BDCs [bulk distribution companies], we don’t operate filling stations. We feed the Oil Marketing Companies (OMCs) who operate fuel filling stations. But as stakeholders, we felt the need to assist the victims of this tragedy. We are, therefore, donating GHc20,000 to help in this noble gesture.
“We hope and pray that other corporate bodies will donate to a worthy cause”, Mr Hosi added.
He lauded the Multimedia Group, individuals and all persons who had so far contributed to the fund.
July 2 ultimatum
Meanwhile, families of persons who died from last Wednesday’s flood and the fire disaster at the GOIL Fuel Station have up to July 2, 2015 to claim the bodies.
According to the Manager of the Korle Bu Mortuary Department, Mr George Denkyi, the law permitted unidentified bodies to be buried within 28 days of being received at the morgue.
In effect, bodies at other public health facilities will be affected by this ultimatum.
He explained that a mass burial would be held for the unclaimed bodies after July 3, 2015.
“Post mortem examination will be performed on the bodies to find the cause of death. The unclaimed ones will then be buried in a mass grave after the July 2 deadline,” Mr Denkyi told Graphic Online in Accra Monday.
Bodies identified
So far, the remains of 64 people who died from the disaster at the GOIL Station at the Kwame Nkrumah Circle in Accra have been identified.
The 37 Military Hospital received 65 bodies, out of which 32 have been identified, while two are charred beyond recognition.
Four persons are currently receiving treatment at the Intensive Care Unit (IOU) of that hospital.
“There are 65 bodies in our morgue right now. They are 22 females and 43 males, while 22 victims are currently on admission. A male child is among those admitted”, a source at the hospital disclosed.
The Police and the Korle-Bu hospitals
Fifty-seven bodies are in the Police Hospital morgue, with families having managed to identify 30 bodies as of the time of going to press yesterday.
The Korle Bu Teaching Hospital received 11 bodies. Six of the deaths were flood-related.
Desperation
The heavy downpour recorded in some parts of Accra left in its wake death and misery, as some persons are still unaccounted for.
Scores of family members have been trooping to various health centres in search of their missing relatives.
Grief stricken Ghanaians are moving from one hospital to another, in search of either bodies or family members receiving treatment.

Saturday, June 6, 2015

Govt still owes US $552 million---Chamber of Bulk Oil Distributors

Chief Executive Officer (CEO) of the chamber, Mr Senyo Hosi
Chief Executive Officer (CEO) of the chamber, Mr Senyo Hosi
The Chamber of Bulk Oil Distributors (CBOD) says although the government has paid GH¢412 million of its debt to the members of the chamber, there is still an outstanding balance of $552 million.
Out of the amount, $480 million represents under-recoveries from 2013 to 2014, while $72 million stands for interest on pre-financing of the price under-recoveries from July 2011 to December 2014.
Under-recovery refers to the inability to fully recover the contract sum at which products are supplied to the market as a result of negative differential between the exchange rate applied by the National Petroleum Authority (NPA) in determining prices at the pump and the exchange rate at which the Bank of Ghana supplies foreign exchange to honour the supply contract.
This situation is the resultant effect of the depreciation in the cedi.
The chamber, however, acknowledged that more than GH¢412 million had been accrued in over-recoveries (profit) to pay off price under-recoveries (loss) due to its members.
According to the chamber, the GH¢412 million was the balance for under-recovery for subsidies on petroleum products for the period from July 2011 to December 2013.
In an interview with the Daily Graphic in Accra yesterday, the Chief Executive Officer (CEO) of the chamber, Mr Senyo Hosi, explained that the money was recouped from gains made from the drop in crude oil prices on the world market.
In June last year, the government released an amount of $150 million to enable Bulk distribution Companies (BDCs) to lift petroleum products to feed the market.

Reconciliation

“The impression being created is that the government has fully settled its debts with the BDCs but let it be on record that the government still owes us,” Mr Hosi noted.
He said the BDCs were reconciling their figures for onward submission to the NPA for audit.

Turmoil

Ghanaians faced shortage of petroleum products in the last week of June 2014 due to liquidity challenges faced by the BDCs.
Financiers of the BDCs declined to release more funds for the purchase of petroleum products because the BDCs were highly indebted to them.
The government on the other hand was also indebted to the BDCs.
An international audit firm, Ernst and Young, was contracted by the Ministry of Finance in the second week of June 2014 to audit the claims of the Bulk Distribution Companies (BDCs) before payment.
It has since completed its work and it was based on its final report that the government settled the rest of its July 2011 to December 2013 debt.

Cause of debt

The government’s indebtedness to the BDCs was as a result of forex losses, which was attributed to the depreciation of the cedi.
The government did not pass on the loss to the consumer through forex subsidy, which in the end piled up the debt from June 2011 to December 2013.

Thursday, June 4, 2015

State appeals against conviction of three : Fined GH¢30,000 for stealing GH¢623,030

The state has appealed the conviction and fine of three persons who stole a total of GH¢623,030 belonging to the Tema Oil Refinery (TOR).
The High Court, presided over by Mr Justice John Ajet-Nasam, on May 18, 2015 convicted three persons to a fine of GH¢30,000 each for stealing GH¢623,030 from the accounts of TOR in 2007. 
Frank Kpemli, alias George Owusu; Richard Afari, alias Wofa, and Mohammed Sanusi Bagigah, alias Parker, were each fined GH¢30,000 or in default serve 15 years’ imprisonment each with hard labour.
Another aspect of the judgement complained of by the state was the acquittal and discharge of the fifth accused person, Bernard Sallah.
Notice of appeal
A notice of appeal filed on behalf of the Attorney-General’s Department said the state was dissatisfied with the judgement of the High Court and was, accordingly, urging the Court of Appeal to quash it.
The decision complained of, according to the state, “is the part of the judgement acquitting and discharging the fifth accused Bernard Sallah and the part of the judgement sentencing the first, second and fourth accused persons to a fine of GH¢30,000 and in default 15 years’ imprisonment”.
Grounds of appeal
According to the prosecution, the judgement of the court in respect of Sallah could not be supported, having regard to the evidence on record.
The state argued that the judge erred in law when he imposed a fine on the three convicts, instead of a custodial sentence.
“The sentence of a fine of GH¢30,000 each and in default 15 years’ imprisonment imposed on the first, second and fourth accused persons is not proportionate to the offences for which they were convicted,” it said.
Reliefs sought 
Consequently, the state wants the Court of Appeal to set aside Sallah’s acquittal and order his conviction, as well as the correction of the conviction of Kpemli, Afari and Bagigah.
Background
A fourth accused person, Joseph Nyanor, was acquitted and discharged during the trial after his lawyers had filed a submission of ‘no case’.
The five were all charged with one count of conspiracy to commit crime, namely, stealing, contrary to the Criminal Offences Act, 1960 (Act 29), while Kpemli was also charged with four counts of stealing contrary to section 124 (1) of the Criminal Offences Act, 1960, (Act 29).
Afari, alias Wofa was charged with one count of stealing, whereas Bagigah faced 15 counts of forgery.
Facts
The facts of the case were that on July 6, 2007, Kpemli, using the false name George Owusu, went to the Stanbic Bank, headquarters branch in Accra, to cash GH¢20,000. 
In the course of processing the money for Kpemli, officials at the bank, who had become suspicious of the huge sums of money passing through the accused’s account purporting to come from the TOR account at the GCB, alerted TOR and the police. 
The police rushed to the bank and picked up Kpemli for interrogation. 
In the course of interrogation, Kpemli revealed that he was part of a syndicate working to siphon various sums of money from TOR accounts by using TOR cheques.
He mentioned Sallah as a member of the syndicate who assisted him to open a number of accounts with various banks where money drawn on TOR accounts at the GCB had been lodged and withdrawn. 
He also cited Afari as the one who recruited him into the syndicate and also lodged the various amounts of money belonging to TOR into the various accounts opened in his name. 
Meanwhile, a mini statement requested by TOR from the GCB revealed a number of unauthorised withdrawals from the company’s account at GCB. 
Investigations revealed that those withdrawals had been made on the TOR account through 15 TOR cheque leaflets. 

A-G, ex-NIB boss in legal tango


The Supreme Court will, on June 23, 2015, hear two related applications in a dramatic case in which the two main protagonists are invoking the supervisory jurisdiction of the highest court of the land to quash a judgement delivered by the Accra High Court on February 27, 2015.
While the Attorney-General’s (A-G’s) Department is asking the Supreme Court to nullify the conviction of Mr Daniel Charles Gyimah, a former Managing Director of the National Investment Bank (NIB), and order his trial in another court, Mr Gyimah, on the other hand, is praying the court to quash his conviction.
Background   
The High Court, presided over by Mr Justice Charles Quist, convicted Mr Gyimah to a fine of GH¢500,000 after finding him guilty of causing financial loss of $60 million to the state. Mr Gyimah was to serve 12 months in prison if he defaulted in the payment of the fine.
Mr Gyimah, who was first arraigned at the court in March 2010, was convicted together with Arvind Kumar Bhatnagar. Bhatnagar had been on the run from the onset of the trial and was, therefore, convicted in absentia.
The former NIB boss was said to have used the bank as a guarantor without the consent of the board of directors and issued 30 promissory notes, valued at $60 million, in May 2007 to a private business, Eland International (Ghana) Limited.
He was said to have conspired with Bhatnagar to commit the offence.
Mr Gyimah was on a GH¢500,000 bail bond after pleading not guilty to charges of conspiracy, attempting to defraud by false pretence, forgery of documents and use of public office for profit.
AG’s beef
But the A-G’s Department claims that the trial judge convicted the former NIB boss without the knowledge of the convict and the state.
Aside from that, the convict had neither filed a submission of ‘no case’ nor opened his defence before the judgement.
According to the state, it also found it unwarranted for the trial judge to fine Mr Gyimah GH¢500,000 for causing financial loss of $60 million to the state. 
The trial judge, it emphasised, erred in not inviting Gyimah to open his defence before delivering the judgement. It also maintained that the trial judge erred in law by not serving hearing notices on the parties before passing judgement.
According to the state, it became aware of the judgement on April 20, 2015 when it enquired about the status of the case and was informed by the trial judge that judgement had been delivered in February.
The state claims that Mr Gyimah, who was billed to open his defence after the court had ordered him, failed to show up to testify, after several adjournments, thereby causing the trial judge to deliver the judgement.
Grounds of appeal
According to the grounds of appeal filed by Mr Matthew Amponsah, a Chief State Attorney, the High Court committed an error of law patent on the face of the record when it proceeded to deliver its judgement without notice to any of the parties to the case and when the interested party had not been called upon to set up a defence.
“Thus, per the state’s arguments, the proceedings of February 27, 2015 were a nullity because the court’s action violated the Audi Alteram Partem rule, which refers to the right of persons to be heard,” it stated.
It said the record showed that to date the interested party had not filed or made his submission of ‘no case’. 
“The trial was plagued by a number of adjournments, and in the process both the accused person and the prosecution stopped attending court.
 “Out of the blue and without notice to any of the parties, the court below, on February 27, 2015, delivered its judgement, even though the court had on no occasion called on the interested party to open his defence, in the light of his failure to make the submission of ‘no case’ that he had indicated he was going to file,” the state said.
It contended that the court below had no jurisdiction to proceed to deliver judgement without notice to any of the parties.
It also said the High Court exceeded its jurisdiction and committed an error apparent on the face of the record in denying the accused person his statutory right to either be heard on his defence or not, after the earlier intimation of a desire to file a submission of ‘no case’.
It further argued that the proper thing for the court to have done was issue hearing notices on the parties, but that did not happen.
“It is utterly incongruous for a judge, when the accused had indicated that he intended to file a submission of ‘no case’, to proceed to deliver judgement without notice to any of the parties in the matter and without first calling on the accused to set up a defence,” it added.
“The Attorney-General thus seeks an order of certiorari to quash the judgement given by the High Court, without an accused person having been duly given the right to open his defence,” a statement of case accompanying the application said.

Gyimah’s grounds
The grounds of appeal filed on behalf of Gyimah by his lawyer, Mr Thaddeus Sory, stated that the Judgement was flawed because it was not based on the face of the court’s record.
According to the defence team, the court lacked jurisdiction to give judgement after it had adjourned the case to allow Gyimah to file a submission of no case.
Counsel further argued that until his client had filed the submission of no case, the court could not proceed to give judgement.
The defence further submitted that the judgement was against rules of natural justice because Gyimah had been denied the right to be heard.

Trial
The prosecution closed its case on July 23, 2013, after having called four witnesses.
The court called upon Mr Gyimah to open his defence, but in the exercise of his statutory rights under Section 173 of the Criminal Procedure and Juvenile Justice Act, 1960 (Act 30), Mr Gyimah intimated that he wanted to make a submission of ‘no case’ against him. 
The court obliged his request, but he failed to file it, thereby resulting in the delivery of the judgement.