Opuni tells witness: Your testimony is based on institutional memory

Dr Stephen Kwabena Opuni, former Chief Executive Officer (CE) of Ghana Cocoa Board (COCOBOD) says the sixth Prosecution Witness (PW6), Peter Osei Amoako, is only basing his testimony on institutional memory and not that he has information as an official of the company.

Dr Opuni told the court trying him, Seidu Agongo and Agricult Ghana Limited that PW6, who now happens to be the Board’s Director of Finance, gave his Police statement as recent as October 12, 2020.

The former  COCOBOD CEO, in proving that the witness did not participate in the transactions that directed Agricult to sole source the supply of  700,000 litres of Lithovit liquid fertiliser at the cost US$19,500, 000 in 2014/15 cocoa season, said between  2013 to 2016, Mr Amoako was not at the Corporate Finance.

He also told the court presided over by Justice Clemence Honyenuga on Thursday that the witness was working at Finance Department of the Takoradi branch of Cocoa Marketing Company (CMC).

The witness, however, denied the assertion.

Conversely, the answer attracted a follow-up question by defence counsel of Dr Opuni, while cross-examining the witness, asking: “But you have been on transfer to Takoradi. Isn’t it?”

The witness answered in affirmative and said it was between January 2015 and December 2016, adding that in January 2017, he was transferred to the Corporate Head Office.

Counsel further asked whether it was a normal practice required of a Chief Executive for Dr Stephen Opuni to approve payments to Agricult and the witness answered yes.

The following are excerpts of questions (Q) and answer (A):

Witness, being led in evidence by Principal State Attorney, Stella Ohene Appia Q: Kindly tell the court how payments were made for the 2014/15 purchases?

1. For the 2014/15 purchases, after the procurement processes and the contract had been signed between COCOBOD and Agricultlimited, the company delivered Lithovit liquid fertilizer of 700,000 liters. Inspection carried out…

Payments were made in 4 tranches. The first payment was made on 21st July 2015 with a letter of instruction to Ecobank for the transfer of GHC39, 032, 118 paid to Stanbic account of Agricult.

The second payment was made on 6th August 2015 with a letter of instruction to National Investment Bank (NIB) GHC7, 169, 113 paid to Agricult’s Stanbic account.

The 3rd payment was made on 17th September 2015. A letter of instruction addressed to Barclays, GHC2, 000, 000 to Agricult’s Stanbic account.

The 4th payment was made on 9th Oct 2015 letter of instruction addressed to GCB, GHC25, 275, 223 to Agricult’s Stanbic account.

1. Please tell the court how 2015/16 purchases were made?
2. After all procurement processes had been completed and a contract was signed, the supplier delivered one million litres of Lithovit liquid fertilizer. Inspection carried out. Approval was granted and payment was made in seven tranches at a value of $26,500,000.00. All payments were made in equivalence of Ghana Cedis

1^st payment 18th March 2016from NIB to Agricult’s Stanbic account GHC30million; 2nd payment 18th March 2016 from Standard Chartered to Agricult’ Stanbic account, GHC4 million; 3rd payment 18th March 2016 from UT Bank to Agricult’s Stanbic account, GHC 4million;

4th payment 18th March 2016 from Stanbic Bank to Agricult’s Stanbic account GHC6 million; 5th payment 18th March 2016 from Fidelity Bank to Agricult’s Stanbic acount GHC20 million; 6th payment 18th March 2016 from ADB to AgricultStanbic account, GHC5.5 million; 7th payment 18th March 2016 from Barclays Bank to Agricult Stanbic account GHC27, 435, 974.50.

1. Looking at exhibit EE series to GG series, who authorised all these payments?
2. Dr Opuni.
3. You told this court that the contract for 2016/17 was terminated by COCOBOD. Why?
4. Available reports show that 2016/17 contract between COCOBOD and Agricult was terminated because the product tested at CRIG was powder, however, the product procured was Lithovit liquid fertilizer.

Again the product did not go through the two years minimum testing regime. Although the product tested was on seedlings, the product procured was applied on mature cocoa.

Cross examination by Samuel Cudjoe

1. Mr Osei Amoako, how long have you worked with the Finance Department of COCOBOD?
2. 16 years and 3 months.
3. How long did you work in the finance Department of Cocoa Marketing Company (CMC)?
4. One year, four months.
5. Can you give us specifics?
6. From January 2013 to 2014 April,
7. How long were you with the Takoradi branch of CMC?
8. I have never worked in Takoradi Branch of CMC.
9. But you have been on transfer to Takoradi. Isn’t it?
10. Yes, My Lord, I have been on transfer to Takoradi.
11. During which period?
12. Between 2015 January to December 2016.
13. I am, therefore, right to state that at the time the transactions between 2013/14 and 2016 took place you were not at the Corporate Finance.
14. Yes
15. Because you were not there, all your evidence you gave to this court for the past three sessions are based on institutional memory. Isn’t it?
16. No, my Lord. I have an explanation. I was transferred back to corporate head office in January 2017 and during that period I have custody over COCOBOD finance documents so my evidence is based on available documents in my possession.
17. In fact, do you have personal information by way of being an official who worked on the transactions?
18. Yes, but with explanation. As a finance person in COCOBOD records are there for everybody to review. The fact that I wasn’t part of the transaction doesn’t change the records available.
19. COCOBOD as a well-structured institution has documents, which concerns all aspects of procurements?
20. Yes.
21. In fact, you gave a statement on the 12th day of October 2020?
22. Yes
23. Have a look at this statement. This is the statement you gave to the police on 12th October 2020?
24. Yes
25. In your statement you stated “all documents for procurement activities and payments are in the custody of the Finance & Procurement Departments for reference”?
26. Yes
27. On page 1, you stated the procedure upon award of contract and delivery of goods and service?
28. Yes
29. According to your statement, it is “the Procurement department which initiates all payments after procuring the goods by preparing documentation and forwarding to internal audit?
30. Yes
31. You also stated that after internal audit recommendation, all payments are forwarded to the Deputy Chief Executive Finance & Administration (DEC F&A) or the Chief Executive depending on the amount on the approval limits?
32. Yes
33. What is the limit of money approval of the DCE F&A?
34. GHC10, 000.00.
35. So that between 2014 January and December 2016, what was the limit of the DCE with respect to approval for payment of money?
36. GHC10, 000.00.
37. You also stated as follows: “payment documents approved by the approving authority are forwarded to the Finance Department for confirmation with the budget”?
38. Yes
39. Then you stated again “for Finance Department after review initiates payment to the beneficiary through either cheque or in online transfer”?
40. Yes
41. Then you also stated “payments are then referred to by the bank and evidence of payment effected in the form of Swift Advice / bank statement from…is placed on file?
42. Yes
43. From your statement then the only person who approves payment for all fertilizers in COCOBOD can only be the CE?
44. Yes
45. When, therefore, in your evidence before this court this morning, you stated that the then Chief Executive, Dr Stephen Opuni gave approval for payments to Agricult, he was doing something which every Chief Executive is required to do?
46. Yes
47. In fact, from your statement, which I have referred above i.e. that “…” By this statement, Finance Department has to confirm before payment is effected?
48. Yes
49. If you look at exhibit GG series, which covers payments in 2016, which you tendered, shows the names of the persons who after approval, authorised payments. Isn’t it?
50. My Lord, yes, but with an explanation, in COCOBOD we have two signatories responsible for signing cheques and letter of instructions for the payments and online payments if the need be. The instruction is the Chief Executive and his three deputies. The four of them are on the A side of the mandate. The Director of Finance (DOF), his or deputy and the accounts manager are on the B side of the mandate. The mandate is A and B for signing of cheques and transfers so the Chief Executive and his deputies, any of them is eligible to sign on the A side. The DOF, his deputy and accounts manager on the B side, any of them is also eligible to sign on the B side. However, generally the Deputy CE F&A and the DOF sign most of the contract instructions after approval by the Chief Executive.
51. From the exhibit GG series, which you tendered this morning in court, which officials authorized payment for the Agricult fertilizers in 2016?
52. The payments were authorised by the deputy CE F&A and the DOF and my Lord, this authorization was derived from the approval of the CE.
53. Before payment was authorized by the deputy CE and DOF, all the necessary and relevant authorities in the Finance Department gave the necessary Okays, as can be seen from the documents accompanying the authorisation for payments?
54. Yes but with explanation. If you look at the document being referred to, there was an approval on the 2nd February 2016 by the CE and that approval was sought by the deputy CE F&A on the 19th of February 2016, which gave the DCE and Finance Director the authorization to pay.
55. I am putting it to you that this is the right and normal procedure, which governs payment in COCOBOD?
56. Yes
57. The Finance Department of COCOBOD together with the audit department after the approval will not effects payment if these departments are not satisfied?
58. Yes but I have explanation. The audit department will look at the documents available to them and when those documents are okay, will make a recommendation. The recommendation is not approval. The approving authority has the right to approve or reject payments. When the approval is given then the finance department comes in to make payment.
59. In all approvals by the Chief Executive, the Audit Department recommends payment before the CE gave approval?
60. Yes but with explanation. At the point of approval by the CE he has all documents in front of him with the audit recommendation and he can decide whether to approve or not.
61. The officers who worked on this approval are in the employment of COCOBOD?
62. I cannot tell whether all of them are in employment?

Case adjourned to Tuesday 17th November

 

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