December 22, 2024

As minister faces inflated prices claim in multimillion-dollar procurement

The scandal involving the purchase of the 307 ambulances for the One-Constituency-One-Ambulance, is getting murkier by the day with suggestions that the prices of the Mercedes Benz, had been inflated by Mavis Hawa Koomson, when she was in charge of the now defunct Ministry of Special Development Initiatives.

Another finding by The Herald, is that the Akufo-Addo government either failed to do due diligence or deliberately awarded the deal to an ex-convict as one of the persons involved in the transaction, had spent time in a UK jail, and was on trial for one of his multiple criminal cases when he jumped bail to Ghana.

Service Ghana Auto Group Limited (SGAGL), a company in which Stephen Okoro, son-in-law of the President, Nana Akufo-Addo, has been cited as one of the beneficiaries of the transaction yesterday stated that it offered the lowest price of US$133,000 per ambulance, “compared to offers by competitors, including Silver Star Auto Limited, ranging from $250,000 to $300,000, as revealed by the Tender Evaluation Report”.

The US$133,000 per ambulance as mentioned in the statement of the SGAGL, is, however, contrary to the US$177,000 Mavis Koomson, told the Appointment Committee of Parliament when she appeared on Thursday, February 18, 2021, to be vetted as the Minister for Fisheries and Aquaculture Development, putting the total cost of the ambulances at US$54.339 million.

The same woman, had on Asempa FM’s Ekosii Sen programme on Wednesday, January 29, 2020, “Each of the ambulances costs US$133,000 with two years warranty and full premium insurance being handled by a local company.” This meant that a total of US$40.831 million.

The statement by Service Ghana Auto Group, which said it had been a consortium of seven companies, had a signature, but no name, although the telephone numbers on it had been traced to one Charles Oppong-Kyekyeku, owner of Luxury World Auto Group Limited.

Interestingly, about a year ago, a certain Dr Christian Siaw-Missah, was signing documents for and on behalf of the company, as its Managing Director.

Another interesting thing about Charles Oppong-Kyekyeku, is that he is an ex-convict with multiple criminal cases.

In one such case, Charles was a suspect who jumped bail in March 2010. His criminal records were all along through the state security agencies, the Financial Intelligence Centre (FIC) to the government, specifically the Ministry of Special Development Initiatives, yet the government kept dealing with him.

In the UK, Mr Oppong Kyekyeku, then a security boss is reported to have swindled more than a quarter of a million pounds from a major London property firm, skipping bail while awaiting sentence.

Mr Oppong Kyekyeku, was jailed in the UK for fake invoices faxed totaling £245,000 to Jones Lang LaSalle over two years.

In Ghana, the Daily Guide newspaper on June 27, 2022, reported that he was hauled before an Accra High Court for fraud, charged with forgery in a matter involving the procurement of the One-Constituency-One-Ambulance.

The suspect, who is the Chief Executive Officer (CEO) of Luxury Auto Group, one of the seven companies involved in the 307 ambulance deal, was charged with forgery of documents contrary to section 169 of the Criminal and Other Offences Act 1960 (ACT 29), and altering forged documents contrary to section 169 of the Criminal and Other Offences Act 1960 (ACT 29).

He has since been granted bail by the Accra Circuit Court 4 presided over by  His Lordship Justice Emmanuel Essandoh, after spending a day in police custody due to his inability to meet the bail conditions.

According to the facts of the case, as presented to the court by the Prosecutor, Inspector Princess Tetteh Boafo, during the month of March 2020, the company secured a contract from the Government of Ghana through the defunct Ministry of Special Development Initiatives (MSDI) to supply spare parts to Ambulance Services.

The accused then initiated a process to procure the spare parts from AL Armani L.L.C (herein referred to as AL Amani), a Dubai-based company.

During the period, AL Amani, received a purchase order from the company for supply of spare parts. AL Amani sent a proforma invoice via email to Luxury World Auto Group Limited with a total invoice amounting to US$130,910.00.

The accused upon receiving the original proforma invoice tried and succeeded in falsifying the proforma invoice and inflated the amount to US$189,982.00.

The accused caused the faked proforma invoice to be used for the procurement of goods through Fidelity Bank East Legon Branch, for which an Import Declaration Form (IDF) was generated by the Ministry of Trade and Industry.

A case was reported to the police, leading to the arrest of the accused.

During investigation, the accused person declined to speak on the issue. A request was sent to the Financial Intelligence Centre (FIC) to contact and verify the authenticity or otherwise of the proforma invoice with a total face value of US$189, 382.00 from AL Amani.

A response from the Financial Intelligence Centre indicated that the proforma invoice presented by the accused was forged. After thorough investigations, the accused was charged and hauled before court. This came after he had earlier been denied entry into Dubai by Interpol because he was under investigation by Ghana Police on the matter.

Then 41-year-old, had fake invoices faxed totaling £245,000 to Jones Lang LaSalle over two years and laundered his gains through his UK Star Security company in East Ham, East London.

Tens of thousands of Pounds were said to have been wired abroad by Oppong-Kyekyeku.

Oppong-Kyekyeku, had also recruited fellow security firm boss Paul Eskdale, 44, to help wash the dirty money through his Guardsman Security Services and Investigations in Welling, Kent.

Eskdale admitted conspiring with Oppong-Kyekyeku and was spared jail, after Judge Georges Khayat QC, suspended his 12-month jail term for two years.

Oppong-Kyekyeku, was convicted by a jury at Snaresbrook Crown Court last month, but is believed to have fled to Ghana.

However, Mr Oppong Kyekyeku, failed to turn up for his sentence hearing that day and Judge Khayat, jailed him for three years in his absence.

David Owusu-Yianoma, defending, claimed Oppong-Kyekyeku breached his bail and ran in fear after being unfairly treated during his trial.

“The only reason he is not here today is the very real emotional stress and indeed the deep sense of despair that was brought upon him as a result of what he saw in this court,” the barrister said.

But Judge Khayat, said the exposure in the witness box of Oppong-Kyekyeku’s lies were the cause for his absence.

The judge described Oppong-Kyekyeku as a ‘thoroughly dishonest person’.

Judge Khayat, also disqualified Oppong-Kyekyeku from working as a company director for eight years. Oppong-Kyekyeku, will face confiscation proceedings should he be apprehended.

Judge Khayat suspended Eskdale’s jail term after hearing he returned a total of £51,000 to Oppong-Kyekyeku and took no further part in the scam.

Oppong-Kyekyeku, of (28) Devon Road, Barking, Essex, was convicted of conspiracy to steal between March 2005 and October 2007. Eskdale, of (80) Orchard Rise West, Sidcup, Kent, admitted the same charge.

Back home in Ghana, Service Ghana Auto Group Limited (SGAGL) is busily refuting claims of not qualifying for its contract with the government for the after-sales and maintenance of 307 ambulances after concerns were raised about the qualification of the company for the contract.

The Member of Parliament (MP) for North Tongu, Samuel Okudzeto Ablakwa, has indicated for instance that the company was handpicked without a competitive procurement process.

SGAGL’s statement released yesterday, Thursday 1 August 2024, noted that it “takes a serious view of utterly false claims and outright lies about its contract with the government for after-sales service and maintenance for 307 ambulances.”

It failed to respond to the many claims by the Auditor General, including the use of the staff of National Ambulace Service (NAS) while collecting money from the state.

It revealed having only two workshops which are functional to provide after-sale services for the vehicles; one is in Kumasi and the other is at NAS headquarters, while sites meant similar workshops in Ho in the Volta Region and Takoradi in the Western Region, have suffered land litigation.

It, however, stated, “Notice is hereby served on those peddling the false allegations, including by the media without attempts to verify same, that they, particularly the unprofessional and uncritical media shall be held liable for reckless damage to genuine business and reputations.”

SGAGL, stressed that the companies the transaction have at all material times, including during the competitive procurement processes, conducted themselves with integrity and complying with due process of law.

“SGAGL is an SPV of a consortium of 7 companies that participated in a competitive procurement process, not sole-sourced, and adjudged on merit to procure, and to provide After-Saies Service and Maintenance for 307 Mercedes Benz Sprinter Ambulances for the National Ambulance Service (NAS).

The competitive procurement process commenced by the Ministry of Special Development Initiatives via an Invitation for Tenders dated 15th November 2018 with reference number MSDl/lPEP/AMB/RST/2018 for 275 units of 4×4 Ambulance Vehicles (varied to 4×2 for 307 vehicles).”

“A total of 16 companies participated inclusive of the 7 companies that eventually formed the Consortium during the pre-tender workshop round and they are: Luxury World Auto Group Limited, Elok Consult, RDC Company Limited, Beft Engineering Works Limited, Prestige Era Company Limited, Bluemix Company Limited, Quality Supply and Builders Company Limited.”

“These companies came together, leveraging their expertise and resources, and emerged with exceptional value-for-money proposition in their compelling lowest bid of $133,000 per ambulance, compared to offers by competitors, including Silver Star Auto Limited, ranging from $250,000 to $300,000 as revealed by the Tender Evaluation Report. The Consortium’s Turkey-based supplier, EMS Mobil Sistemler AS AQ by letter dated 22nd February, 2019, obtained manufacturer’s authorisation from Mercedes Benz, an essential prerequisite for participation in the process,” it further said.

SGAGL noted that the manufacturer’s authorisation for the medical equipment to be installed in the ambulance vehicles was also duly obtained from the EMSA AMBULANCES by letter dated 23rd February, 2019, another critical tender requirement.

“The authorisation provides a warranty guarantee for the medical equipment and ambulances. In full compliance with tender specifications, a comprehensive on-site inspection of the suppliers’ facilities was undertaken with technical officers of the NAS, Ghana Health Service, Ministry of Health and two other relevant sector ministries in Turkey and Amsterdam at the expense of the Consortium.”

“The individual companies in the Consortium had specific allocations and duly supplied the ambulances, paying all applicable duties and insurance costs in full for seamless delivery of same,” it stated failing to give details as to what the individual allocations members of the consortium.

Samuel Okudzeto Ablakwa, has been very determined on the $34.9 million (GH₵538 million) ambulance spare parts procurement deal given to SGAGL.

Mr Ablakwa is concerned about possible corruption in the deal, prompting him to petition the Office of the Special Prosecutor.

According to Ablakwa, the deal was hastily approved by the Finance Minister five days before his removal from office.

The contract, included after-sales service and maintenance for the 307 Mercedes Benz Sprinter 315 CDI ambulances secured by the government in 2019.

He also questioned the legitimacy of the beneficiary company, Service Ghana Auto Group Limited, which was incorporated on April 24, 2020—one year after the ambulances were commissioned in 2019—raising doubts about their capacity to service the ambulances.

He wondered why the government went ahead to award the contract to a company that had been indicted in a report of the Auditor General.

In a statement issued on Thursday, August 1, the company described these claims as false.

The statement clarified that all companies involved in the transaction adhered to competitive procurement processes, maintaining integrity and complying with due legal processes.

Service Auto Group refuted the assertion that it was “handpicked,” stating that it participated in a competitive procurement process alongside 16 companies and was selected on merit to procure and provide after-sales service and maintenance for 307 Mercedes Benz Sprinter ambulances for the National Ambulance Service.

The companies used by the presidential familial gang are: Elok Consult and Services Limited; BEFT Engineering Works Limited; Bluemix Company Limited; Prestige Era Company Limited; RDC Company Limited; Luxury World Auto Group Limited and Quality Suppliers and Builders Company Limited.

Instructively, a majority 6 out of the 8 companies were formed between April and September 2017 — the year Akufo-Addo became President of Ghana. All 8 companies have no track record and expertise in the importation of ambulances.

Elok Consult and Services Limited was incorporated on 25th July 2017. The directors are Stephen Okoro, the man who gave President Akufo-Addo his first granddaughter, and another gentleman who used the name Solomon Okereke for the company registration.

Stephen Okoro, is also a business partner of Gyankroma Akufo-Addo. They have incorporated numerous companies together including one which is into wee farming called “Good Grow Limited”.

Further background checks on Solomon Okereke revealed that he is a direct brother of Stephen Okoro.

Solomon Okereke’s intercepted passport confirms that his full name is Solomon Okoro Okereke. It is not immediately clear why Solomon concealed Okoro when he was registering Elok Consult with his brother, Stephen.

Elok Consult, was paid an impressive GHS32, 203,322.14 on 27th December 2019 for importing 40 ambulances.

BEFT Engineering Works Limited was incorporated on 20th April 2017. The directors of BEFT Engineering are; Frank Agyekum and Alvin Mensah.

Alvin Mensah is a longtime associate of Edwina Akufo-Addo. BEFT Engineering was paid GHS26, 694,249.13 on 24th December 2019 for importing 40 ambulances.

Bluemix Company Limited was incorporated on 5th September 2017. Its directors are Katumi Nambiema and Prince Osei. This company is also a subscriber of Service Ghana Auto Group Limited. Bluemix was paid GHS15, 910,697.68 on December 24, 2019 for supplying 35 ambulances.

Prestige Era Company Limited was incorporated on April 19, 2017. Their directors are Abdul Sumaila and Yousiph Abdulkadir. Prestige Era is another subscriber of Service Ghana Auto Group Limited.  Prestige Era was paid GHS32,203,452.19 on December 27, 2019, for importing 40 ambulances.

RDC Company Limited was incorporated on June 27, 2014. Their directors are Alberta Baidoo and Stephanie Bannerman. RDC is a subscriber of Service Ghana Auto Group Limited. They were paid GHS17, 067,138.41 on December 27, 2019 for the importation of 40 ambulances.

Luxury World Auto Group Limited was incorporated on November 24, 2015. Their directors are Elisha Enti, Vivian Oppong-Kyekyeku, Charles Oppong-Kyekyeku and Jeannette Affram. Luxury World is yet another subscriber of the notorious Service Ghana Auto Group Limited. Luxury World was paid GHS32,202,026.99 on December 27, 2019 for the supply of 40 ambulances.

Quality Suppliers and Builders Company Limited did also receive a payment of GHS26,679,812.23 on December 27, 2019, for the procurement of 40 ambulances. They remain subscribers of the discredited Service Ghana Auto Group Limited.

 

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