Richard Jakpa
Richard Jakpa, the businessman involved in the €2.37 million ‘defective’ ambulance trial, yesterday admitted that his company was paid about €700,000 out of the amount paid by the government to Big Sea under the ambulance contract.
The accused, while under cross-examination by Attorney General Godfred Yeboah Dame, admitted receiving 28.7 percent (although he said he was not sure of the nominal figures) commission as a result of his agency agreement with Big Sea, the supplier of the ambulances.
The Attorney General had earlier pointed out to him that per the agency agreement his company signed with Big Sea, Jakpa At Business Limited was entitled to 10% of all monies paid under the ambulance contract.
The accused said that was one of the entitlements, but added that it was not his total entitlement as he was entitled to more by other clauses under the agreement, including fees, remunerations, among others.
He also added that payments made to Jakpa At Business Limited were made pursuant to court orders which are still valid and not set aside.
NDC Govt’s Breach
The accused yesterday told the court that the then National Democratic Congress (NDC) government which executed the contract breached the terms of payment.
According to him, the then government acted contrary to the terms of the payment for the ambulances when it established the Letters of Credit (LCs) for the payment directly to Dubai based Big Sea instead of establishing it in the name of his company, Jakpa At Business Limited.
The accused, while making a case for himself that he did not cause any financial loss to the state under cross-examination by Mr. Dame, said government breached certain clauses of the agency agreement between Big Sea and Jakpa At Business Limited, its agent in Ghana.
“Clause 5.1 was breached when government established the LC direct to Big Sea and paid direct to Big Sea. So Jakpa At Business is not responsible for any financial loss caused to the state. It wasn’t the duty of government to have raised LC direct to the principal in breach of this clause. Government should have raised the LC in the name of Jakpa At Business instead of direct to Big Sea,” Mr. Jakpa told the court yesterday.
The accused also indicated that government ignored clauses and established LC to Big Sea, giving Big Sea the opportunity not to honour this clause which resulted in Jakpa At Business Limited initiating a legal action against Big Sea.
He added that the commercial court which dealt with the case was even surprised how government was able to establish the LC in the name of Big Sea in the first place.
Last week, he told the court that former Minister of Finance, Seth Terkper and former Minister of Health under the NDC administration, the late Sherry Ayittey, deliberately sabotaged the then government’s project to procure 200 ambulances for the state.
Parliamentary Approval
Jakpa, while under cross-examination yesterday, admitted that the parliamentary approval for the procurement of the ambulances did not mention either Big Sea, the supplier of the ambulance or his company, Jakpa At Business Limited.
He also admitted that what was approved by Parliament was a Stanbic Bank loan facility for the procurement of the ambulances.
Mr. Dame then asked him to look at the contract approved by Parliament and put it to him that Big Sea was never approved by Parliament to undertake the transaction.
Mr. Jakpa answered that he was not the Minister of Health then, neither was he a Member of Parliament to know this.
When the AG asked him whether the Stanbic Bank loan facility was procured at all, the accused said as to whether it was used or not used, it is Seth Terkper who can explain why he defied the sovereign will of Ghanaians.
Security Seal
There was a sharp disagreement between Jakpa and the prosecution team yesterday regarding the security seal embossed on the letters Dr. Ato Forson wrote to the Controller and Accountant General and the Governor of the Bank of Ghana for the establishment of Letters of Credit.
Jakpa prior to yesterday had indicated that the presence of the Minister of Finance’s security seal on the letter meant it was written with the authorisation of the Minister of Finance.
But while under cross-examination, he was asked to take a closer look at the inscription on the seal, and the accused said he could see Hon. Minister of Finance written at the top of the seal, adding that, “It didn’t state Deputy Minister of Finance.”
He also said, “Inside the seal you have Controller and Accountant General then on top of the seal is Hon. Minister Finance. So there are two inscriptions.”
Deputy Attorney General, Alfred Tuah-Yeboah, then pointed it out to the accused that the seal on the letter is that of the Controller and Accountant General Department.
Jakpa said that was false and explained that because this is a seal on a letter signed by the Deputy Minister of Finance, which letter emanated from the Ministry of Finance, on top of that is written Hon. Minister Finance just as it is also written Controller and Accountant General.
The accused was then given the two letters to read what was written around the security seal, and when the Deputy Attorney General pointed out to him that there was Deputy Minister written there, Mr. Jakpa denied it and said, “What I see here, I see honourable, I see Minister of Finance. A lot are not legible”
“On the right, the first alphabet after Hon. reads Deputy Minister of Finance,” the Deputy AG queried and the accused said, “No, I don’t see it that way. It is not legible.’
Jakpa went on to complain about the legibility of the inscription until Mr. Tuah-Yeboah asked him to “Take a look at the letter and tell the court the first alphabet you see there.”
“The first alphabet I see is D,” Jakpa answered, and when the Deputy AG put it to him that the seals on the two letters do not signify the authorisation of the Finance Minister, the accused said, “That is not true.”
BY Gibril Abdul Razak