By Sapati, B. A.
The assertion by 18th century French novelist and playwright, Honore de Balzac, that “Behind every great fortune, there is a crime” is definitely not true when it comes to how some men and women became wealthy. However, per investigations by the Serious Fraud Office in 1995, this is so in the case of Ghanaian businessman cum politician, Dr. Paa Kwesi Nduom
The SFO investigation was carried out in 1995 and a report, on request, was submitted to the Office of the First Deputy Speaker of Parliament & Chairman of the Appointment Committee of Parliament in 2001. The First Deputy Speaker of Parliament & Chairman of the Appointment Committee of Parliament at the time was Freddy Blay, currently the Acting National Chairman of the NPP.
According to the report, Paa Kwesi Nduom ripped Ghana off of monies running into billions of cedis through fraudulent representation, conflict of interest and tax invasion in his dealings with the State Enterprises Commission (SEC) in the late 80s.
The conclusion of the SFO report is that Nduom’s conduct was criminal and led to financial loss to the state. The report concludes that Nduom should be prosecuted.
Starting from today’s issue, we reproduce for the benefit of readers and all Ghanaians the report the SFO, on request, sent to parliament in 2001 about how Paa Kwesi Nduom defrauded Ghana of billions of cedis.
Please read serious fraud:
Hon. Freddie Blay First Deputy Speaker & Chairman Of The Appointments Committee Parliament House Accra Dear sir,
RE: REQUEST FOR INVESTIGATION REPORT ON DR. KWESI NDUOM, MINISTER OF ECONOMIC PLANNING AND REGIONAL CO-OPERATION DESIGNATE
Your letter No. OP/A of 6th February 2001 on the above subject refers. The following are the answers to your specific questions: 1. (a) Question : Has Dr. Nduom ever been officially investigated by your outfit, When and for what?
Answer : In November 1995, the Serious Fraud Office commenced investigations Into allegations of fraud and malpractices in the State Enterprise Commission (SEC). Specific allegations covered irregularities in the areas of (a) Management
(b) Discipline
(c) Corporate Director
(d) State Enterprise Commission Board
(e) The Executive of the Commission
(f) The Administration of the Commission
(g) Disposal of vehicles
(h) Use of vehicle
(i) Reform Programme
(j) Consultancy Agreements
(k) Consultancy Fees
(l) Courses and Seminars
(m) A publication on the Executive Chairman of the Commission, Mr. William Adda.
In the course of investigations, Dr. Kwesi Nduom’s transactions with the State Enterprises Commission (SEC) during the period were examined for their relevance to the State Enterprises Commission (SEC) affair.
Among the issues were:
(i) The means by which Dr. Nduom obtained contracts from State Enterprises Commission (SEC); for example, holding himself out as a representative of Deloitte and Touche USA and at the same time purporting to be operating another Deloitte and Touche Consultancy, under which he undertook various contracts with State Enterprises Commission (SEC).
(ii) Allegations of conflict of interest involving Dr. Kwesi Nduom while he was a consultant and at the same time an Executive Director of the State Enterprises Commission (SEC). (iii) Payments received from the State Enterprises Commission (SEC) for contracts not executed.
(iv) Illegal repatriation of income accruing to Dr. Nduom from State Enterprises Commission (SEC) contracts into his personal account abroad in breach of aspects of the Exchange Control Act, 1961, Act 71 with attendant tax evasion on these incomes.
Question : what were the findings? Answer : The findings are contained in the attached document entitled:
REPORT OF INVESTIGATIONS INTO ALLEGED IRREGULARITIES AT THE STATE ENTERPRISES COMMISSION (SEC) CONDUCTED BY THE SERIOUS FRAUD OFFICE (SFO) – JUNE 1996
A summary of events pertaining to Dr. Kwesi Nduom is also attached comment.
It is important to mention that the Serious Fraud Office does not issue REPORTS to any authority. Documents on Serious Fraud Office investigations titled “Reports” are part of the internal records of the Serious Fraud Office.
If there are criminal charges arising out of any Serious Fraud Office investigation, a DOCKET is prepared for study and advise by the Attorney General. A fiat is then obtained from the Attorney General for prosecution in court.
In the specific case of the State Enterprises Commission (SEC) no docket was sent to the Attorney General because the former Acting Executive Director of the Serious Fraud Office during whose tenure of office the investigation was conducted did not act accordingly. The State Enterprises Commission (SEC) case, therefore, can still be pending, the findings notwithstanding.
Yours faithfully B. A. SAPATI Ag. Executive Director
Read Part 2 of the SFO’s report on how Nduom allegedly criminally enriched himself by ripping Ghana off billions of cedis in tomorrow’s issue. Message 1 of 14
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