Paul Ofori Agyiri, Acting Deputy Managing Director of the Agricultural Development Bank (ADB), yesterday appeared before the Commission of Inquiry set up by President John Evans Atta Mills to investigate the alleged misuse of some $72 million during the Ghana@50 celebrations in March 2007.
He hinted that the bank’s involvement in the whole event started in August 2006.
According to him, a letter dated July 10, 2006 was addressed to Stephen Sekyere Abankwah, MD of Prudential Bank, who doubled also as the Chairman of the AU Development Consortium Limited, requesting his outfit, National Investment Bank, and ADB to raise funds for the construction of 30 presidential mansions
situated at Ridge in July 2007. The said letter came from the office of the then President.
The buildings were to house several Heads of State who attended both the Ghana@50 celebrations and the AU Summit held in Accra.
The three-member Commission probing the matter has the powers of a High Court and it is made up of Justice Isaac Duose of the Court of Appeal as Chairman, with former Auditor-General, Osei Tutu Prempeh and Mrs. Marietta Brew Appiah-Opong, a Legal Practitioner, as members.
It was established by the President on June 1, 2009 under Article 278 Clause 1 (a) of the 1992 Constitution.
It also has Mrs. Barbara Tetteh-Charway and Mrs. Evelyn Keelson as Counsel/Secretaries.
As its terms of reference, the Commission is to inquire into and report within three months, allegations of improper use of public or any other funds; and inquire into the use by the Secretariat of any property, movable and immovable.
However, as a result of the request, the three banks incorporated into a liability company which turned out to be AU Development Consortium Limited (AUDCL) and applied to member banks to contribute towards the financing of the project at a cost of $9million.
The houses were to be used as security for the liabilities that the consortium would incur.
Later, AUDCL realized it could not go back to the banks to raise an amount of GH¢10million to execute the project and therefore asked for a GH¢10 million loan facility from the Social Security and National Insurance Trust (SSNIT) to finish both the La and Ridge buildings.
Records brought forward indicated that the Ministry of Finance appealed to SSNIT to release some plots of land for AUDCL to carry out its project at Ridge.
After consultation among the three banks, Mr. Agyiri noted that ADB provided an amount of $3.5 million to AUDCL which received approval by the Board.
He consequently mentioned that government had instructed the sale of those houses to facilitate the liquidation of the loan while the surpluses will be paid to the Government of Ghana.
The sale of the buildings was however delayed because government at the time requested to use them for other events such as the UNCTAD conference.
In the meantime, AUDCL had engaged the services of some consultants to get prospective buyers – a move aimed at defraying the outstanding debt.
Mr. Agyiri was discharged and proceedings would continue with SSNIT on Monday, 27 July, 2009 at the Old Parliament House in Accra.
By Nathaniel Y. Yankson