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Press Release
NPP, December 22, 2003
STATEMENT BY THE MINORITY IN PARLIAMENT
DUBIOUS SETTLEMENT OF CLAIM OF GH¢41,811,480.59
We have invited you here to draw the attention of all
well-meaning Ghanaians to the apparent fraud, negligence,
recklessness, collusion and financial loss associated with
the payment of GH¢41,811,480.59 (over 418 billion cedis) to
one Alfred Agbesi Woyome by the Minister of Finance and
Economic Planning in purported “settlement of claim
involving rehabilitation of three stadia.”
This huge and unjustified payment, is said to be based on
terms of settlement brokered by the then Attorney General
Hon. Betty Mould-Iddrisu. Hon. Betty Mould-Iddrisu as
Attorney-General did not file any defence to the patently
strange, dubious and expensive claim against the Government
of Ghana (GoG) by Alfred Woyome,in his personal capacity and
who had neither put in a bid nor entered into any contract
with the GoG to construct any stadium in Ghana between 2001
to 2006.
Through Mrs. Mould-Iddrisu’s negligence and admission of
mistake, the said Alfred Woyome obtained judgement of GH¢105,540,548.24
(one hundred and five million, five hundred and forty
thousand, five hundred and forty eight and twenty four Ghana
cedis) and costs of GH¢25,000.00 against the State on 24th
May, 2010. This amount is over one trillion cedis.
Background
When Ghana was awarded the right to host the 2008 Africa Cup
of Nations, the then New Patriotic Party (NPP) government
decided to build two new stadia at Essipong, (Sekondi) and
at Tamale. It was also decided to refurbish the Ohene Djan,
Accra, Baba Yara, Kumasi, and El-wak stadia towards the
hosting of the prestigious tournament.
Following the publication of the invitation to tender and
the opening of bids for the stadia, the then Ministry of
Education and Sports, on 5th July, 2005 appointed a three
member Committee to review, evaluate and make
recommendations on financial proposals made by eight
short-listed companies for the construction and
rehabilitation of the five stadia for the CAN 2008
tournament in Ghana. The Committee was chaired by the former
Deputy Governor of the Bank of Ghana, Lionel Van Lare Dosoo.
Other members were from the Legal and Aid and Debt
Management departments of the Ministry of Finance and
Economic Planning.
RECOMMENDATION BY VAN LARE DOSOO COMMITTEE
On 20th July, 2005, the Van Lare Dosoo Committee met one of
the short-listed companies VAMED Engineering Company to
ascertain the credibility, viability, timeliness and current
status of the financial proposals from the firm. VAMED, an
Austrian firm had proposed to raise funding of about
€764,117,646 from Bank of Austria for the project. Alfred
Woyome, then Deputy Honorary Consul for Austria in Ghana,
was part of the negotiating team of VAMED. The Austrian
firm’s conditions for raising funds for the project
included:
1. The requirement to subject the project to MIGA Guarantee
and charges.
2. The approval of the credit terms by the IMF.
3. The setting up of a Special Purpose Company by VAMED and
the Government of Ghana (GoG).
4. The issuing of irrevocable Sovereign Guarantee by the GoG
to Bank of Austria.
5. The attachment of Health and Wellness Centres to the
stadia to be built across the country.
The Van Lare Dosoo Committee advised the GoG that the
conditions and processes to be met by both GoG and VAMED
could span three to four months, thus a potential source of
delay. Given the urgency of the project, the Committee
further recommended that the GoG should have an alternative
option of securing its own line of funding.
On 22nd August, 2005, the then Ministry of Education and
Sports informed VAMED that it was discontinuing with the
tendering process due to the time constraints and the high
financial commitments implied in the submissions.
On 27th August, 2005, Waterville Holdings Limited (BVI) said
to be part of the VAMED consortium which also included
Micheletti and Co limited responded to the letter by the
Ministry of Education and Sports and requested for
negotiations to resolve what they regarded as “breach of
process.” Bank of Austria subsequently declined to fund the
project.
Eventually, Waterville Holdings could not raise the funds
and collaborated with Micheletti and Co to build the Ohene
Djan, Accra and El-wak stadia, and with CONSAR Limited to
build Baba Yara stadium, Kumasi.
Letters from the then Attorney General, Hon. Joe Ghartey
dated August 1, 2006 and from the Office of the President
dated October 24, 2008 confirm that the GoG had no claims to
settle with any other party or individual after Micheletti
and CONSAR had agreed to pay amounts outstanding to
Waterville Holdings.
THE DUBIOUS CLAIM AND ADMISSION OF MISTAKE BY HON. BETTY
MOULD-IDDRISU
Ladies and Gentlemen, as earlier stated, in the course of
the bid for the construction of the stadia, m-Powapak said
to be the Ghanaian representative of VAMED acted on behalf
of the firm. Mr. Alfred Agbesi Woyome was neither known as a
shareholder or Director of the said firm and had never made
any claim in respect of the construction of stadia from 2001
to 2006 nor did the government deal with him in his personal
capacity. Indeed the construction of the stadia started in
2006 and not in 2001.
In a bizarre and highly controversial manner, the first NDC
Attorney General, Betty Mould-Iddrisu started dealing with
Alfred Woyome, who had become a kingpin and bankroller of
the NDC. She facilitated and advised the government on the
payment of GH¢41,811,480.59 (over 411.8 billion cedis) to
Alfred Woyome contrary to available evidence and information
at the Ministry of Finance, the Attorney General’s
department, the Ministry of Youth and Sports and her own
subsequent admission of a defence to the claim.
The sequence of events outlined below confirm the role of
Betty Mould-Iddrisu:
A. In April, 2010, before the matter was commenced in court
Hon. Mould-Iddrisu advised Dr. Kwabena Duffuor to pay two
percent (2%) of the total value of the stadia project to
Alfred Woyome (a total stranger) and Austro Invest (an
unknown company), for an alledged breach of agreement with
GoG.
B. On 19th April, 2010 Alfred Woyome sued the Attorney
General and Ministry of Finance and Economic Planning and
amended the endorsement on the writ on 6th May, 2010,
seeking the following reliefs:
i. An order for the payment of the sum of €44,259,009.48 or
its cedi equivalent for cost of “services rendered” by the
Plaintiff (Woyome) to GoG in securing €1,106,587.00 for the
construction of sports stadium medical facilities,
irradiation plant and tissue culture facilities between 2001
to 2006.
ii. An order for payment of the sum of €11,600,289.44 being
accrued interest on the sum of €44,259,00.48 from September
2006 up to April 2010 at the rate of Eurobar 1 year plus
three points.
iii. Interest on the sum of €44,259,009.48 … from May 1,
2010 up to and inclusive of the day of final payment.
iv. Costs including Lawyers’ fees.
C. The Attorney General filed entry of appearance but did
not file any defence (stating there was no defence to the
claim in a later application).
D. On 24th May, 2010, within 18 days of the amended claim
the court entered judgement in favour of Alfred Woyome
totalling GH¢105,540,548.24 and awarded cost of GH¢25,000.000
against the Republic of Ghana.
E. On 28th May, 2010 just 4 days after the judgement, Hon.
Mould-Iddrisu wrote to Hon. Dr. Duffuor, Finance Minister
with a copy to the Chief of Staff that she had negotiated
with Alfred Woyome for him to accept the negotiated amount
of GH¢41,811,480.59 and that “having regard to the judgement
debt against the State, I am of the opinion that we resolve
this matter once and for all.”
F. On 4th June, 2010 the Attorney General’s office and
Alfred Woyome filed the terms of settlement at the court’s
registry stating that:
i. The Defendant (A.G.) shall pay to the Plaintiff (Woyome)
the sum of GH¢51,283,480.59 in three equal monthly
instalments in the sum of GH¢17,094,493.53 beginning June
2010 and ending August 31, 2010 in full and final settlement
of the judgement debt.
ii. “The terms of settlement shall be entered as consent
judgement subject to the usual default clause.”
G. Within 7 days of filing the terms of settlement, the
Attorney General on 11th June, 2010 filed an application for
an Order to set aside the terms of settlement between her
office and Alfred Woyome.
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