The High Court in Accra has ordered the Minority Leader, Dr Cassiel Ato Forson to open his defence in the case involving the purchase of some ambulances.
He has been accused of wilfully causing financial loss to the state in the purchase of the ambulances during his time as Deputy Minister for Finance, which prosecutors argued, were unfit for purpose.
Dr. Ato Forson has been charged together with former Chief Director at the Ministry of Health, Seth Anemana, and businessman Richard Jakpa who have also been ordered to open their defence.
The three have been accused of wilfully causing financial loss of €2.37 million to the state as part payment in a deal to purchase 200 ambulances for the country between 2014 and 2016.
The orders followed the court’s decision that the prosecution has proven a prima facie case against the accused persons that is worthy of an answer.
The Court in its ruling noted that every party in the case has admitted in one way or the other that the ambulances that were imported were defective.
“If you have spent money on a vehicle that cannot be used, then there is a case to be answered,” trial Judge, Afia Serwah Justice Asare Botwe stated.
The trial of the case, which has been ongoing since 2022, has seen the state call five witnesses including Minister for Health Kwaku Agyeman-Manu, officers from the Finance Ministry, Health Ministry, Ambulance Service, and the Economic and Organised Crime Office to make its case.
Defence counsel
Lawyers for Dr. Ato Forson accused argued that aside from the fact that their client never conducted any illegality intentionally leading to the alleged financial loss to the state, the claim that he authorised or caused irrevocable letters of credit (LC) to be established for the ambulances was also false.
Dr. Abdul Baasit Aziz Bamba, head of Dr Forson’s legal team, submitted that the letter bearing the signature of Dr Forson asking for the establishment of the LC were transmitted to Bank of Ghana under the authority of and on behalf of the Minister of Finance.
“Therefore, assuming for the purpose of argument (which is denied) that Dr Forson authorised or caused the setting up of the LC, the claim that this was done without due cause and authorisation is patently false”, he added.
The lawyer added that the then Minister for Finance, Seth Terkper, confirmed in an exhibit before the court that it was the ministry that requested the establishment of the LC.
Dr. Bamba further submitted that prosecution witnesses from the Ambulance Service confirmed to the court that the alleged defects on the imported ambulances could be fixed.
Court’s ruling
On the question of whether Dr Forson was authorised to write the letter, the trial Judge, Justice Asare-Botwe said lawyers for Dr Forson seem to have misapprehended the law.
“It is a misapprehension of the law to state that the AG should have called Seth Terkper to prove that Dr Ato Forson did not have the authorisation to write the said letter”, she pointed out.
Justice Asare-Botwe indicated that once the Attorney-General stated that Dr Forson did not have such authority and Dr Forson replied that he had authority, the responsibility was on Dr Forson to show that he had authority.
The case is back in court on April 13.
Case against Dr. Ato Forson
Dr Forson is alleged to have contrary to the terms of the agreement, written to the Bank of Ghana “urgently requesting…to establish letters of credit for the supply of 50 ambulances amounting to €3,950,000 representing 25 per cent of the contract sum while arrangements are being made to perfect and sign the loan agreement…in favour of Big Sea”
He is also alleged to have written to the Controller and Accountant General authorising the release of the sum of GH¢806,688.75 to the Minister for Health to enable him to pay the bank charges covering the cost establishment of the LC for the supply of 50 Mercedes Benz Ambulance and Related Services”.
The Ministry of Health, the AG said, failed to conduct a pre-shipment inspection of the 20 ambulances which were ready for shipment before payment was made.
This, he argued, was contrary to the contract.
Some 30 ambulances said to have fundamental defects and declared not fit for purpose were shipped into the country.
A total amount of €2,370,000 has been paid for these 30 vehicles.
The Attorney General called five witnesses to testify in support of the case, believes the testimony so far shows that there was a financial loss to the state, that the loss was caused through the action or omission of Dr Forson and that he should have foreseen such a loss as being probable.
Thorny issues
On the thorny issue of whether Dr Forson’s request for letters of credit meant an authorisation of payment, the AG described the argument against it as “mind-boggling”.
According to the AG, the evidence so far shows that the letters of credit were irrevocable and once established, payment was guaranteed.
Another issue that formed a key aspect of Dr Forson’s defence was that he wrote the letters on behalf of the substantive Minister for Finance, Mr. Seth Terkper.
However, the AG argued the letters were written without any authorisation from any quarters.
Background
A Chief Director at the Ministry of Health was alleged to have requested approval from the Public Procurement Authority (PPA) to engage Big Sea through a process of single sourcing for the supply of 200 ambulances.
The Attorney General described this letter as falsely representing that “the reason for the single sourcing was that Big Sea had arranged for financing for the project.”
The PPA was reported to have approved the engagement of Big Sea by a single-source method of procurement for the supply of the 200 ambulances.
Court documents filed by the AG showed that the Ministry of Health in December 2012 contracted with Big Sea to supply the ambulances at a price of €15.8 million.
The agreement stipulated that 25 ambulances were to be delivered within 120 days of execution of the agreement.
The remaining were to be delivered in batches of 25 every 30 days thereafter.
Advance payment, according to the AG, was prohibited and payment was to be by “raising an irrevocable and transferable letter of credit” from the Government of Ghana’s bankers.
