Court adjourns rice importation case to January 26

Counsel for Daniel Charles Gyimah, Former Managing Director of National Investment Bank (NIB) on trial for the alleged importation of rice from India to Ghana on Tuesday said his address for the court was missing.

Colonel Alex Johnson (Rtd) told an Accra Fast Track High Court presided over by Mr Justice Phillip Bright Mensah, that he had reported the matter to the police.

The court ordered him to file the address by December 31.

Mr Anthony Gyambiby, Chief State Attorney prayed to the court for  time to file his response to the submission of “no case” by Mr Godfred  Yeboah Dame, Counsel for Akwasi Osei-Adjei, Former Minister of Foreign  Affairs and Regional Integration and Colonel Johnson.

Mr Justice Mensah ordered the prosecution to file his response on or before January 26, and adjourned the case to January 26, 2011.

The accused persons are facing eight counts of conspiracy, contravention of the provisions of the Public Procurement Act (Act 663), use of public office for profit, stealing and wilfully causing financial loss to the State to the tune of 1,408,590 dollars.

They have pleaded not guilty and granted GH¢200,000 bail each with two sureties.

The sureties are to consist of immovable property and title deeds to be deposited at the Court’s Registry.

The facts are that sometime in February 2008, Former Minister of Trade and Industry, Mr Joe Baidoo-Ansah initiated the importation of rice from India.

In a letter dated February 13, 2008, he requested Government of Ghana through the Indian High Commission in Ghana, to purchase 100,000 metric tonnes of (25 per cent to 35 per cent broken rice).

The rice was expected to arrive in Ghana by May 2008 “to help curb the severe increase of price of staples in Ghana” and the designated consignee was Ghana National Procurement Agency.

Mr Baidoo-Ansah in another letter dated April 10, 2008 addressed to the Minister of External Affairs of India, referred to an earlier meeting between Former President John Agyekum Kufuor and Indian Minister of Commerce.

In the said letter Mr Baidoo-Ansah drew attention to “severe food situation looming in Ghana” and sought to procure from the Government of India 300,000 metric tonnes of low grade white 25 per cent broken rice for shipment to Ghana by June 2008.

However, in April 2008, Osei-Adjei took over the efforts of Mr Baidoo-Ansah and nominated NIB as the sole consignee.

Gyimah represented NIB and negotiated terms of the contract with State Trading Corporation of India through Ghana High Commission in India.

Osei-Adjei instructed Ghana High Commissioner in India to sign the contract on behalf of Government of Ghana.

The contract was executed and 15,000 metric tonnes of rice was shipped by Amira Foods Limited of India, a private shipping company.

On February 18, 2009, the consignment arrived at the Tema Harbour.

Initially, exportation of the rice to Ghana was supposed to be a grant but later turned into commercial transaction, and Gyimah approached the management of Citibank to issue Letters of Credit to cover the value of the consignment.

On arrival of the rice, efforts by management of NIB to acquire import tax exemption from the Ministry of Finance and Economic Planning to clear the rice were turned down, owing to the commercial nature of the contract and in addition, the Ministry was not involved in the transaction.

The consignment was kept in Customs Excise and Preventive Service bonded warehouse.

However, after counting the consignment, 2,997 bags were found missing and the remaining were in varying stages of unwholesomeness.

Prosecution said management of NIB was making efforts to sell the rice through tender.

It said investigations conducted by Bureau of National Investigations revealed that provisions of the Public Procurement Act were not followed and the missing 2,997 bags had been diverted for sale elsewhere for huge private profit.

Source: GNA

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