An ex-banker of Goldman Sachs’ subsidiary in London, Asante Berko, is alleged to have facilitated a $4.5 million in bribes to some Ghanaian officials.
The amount, according to US regulators, Security and Exchange Commission was aimed at helping a Turkish company to secure a power contract in Ghana.
He is reported to have arranged the amount to be paid to Ghanaian government officials.
“From approximately 2015 through at least 2016 (the “relevant period”), while employed at the Subsidiary, Berko schemed to bribe various government officials in the Republic of Ghana (“Ghana”) so that a client of the Subsidiary, a Turkish Energy Company (the “Energy Company”), would win a contract (the “Power Purchase Agreement”) to build and operate an electrical power plant in Ghana and sell the power to the Ghanaian government (the “Power Plant Project” or “Project”),” according to SEC in its lawsuit.
“To effect the corrupt scheme, Berko arranged for the Energy Company to funnel between $3 million to $4.5 million to a Ghana-based company (the “Intermediary Company”) to bribe various government officials responsible for approving the Power Plant Project.”
“The Energy Company transferred at least $2.5 million of the planned $3 million to $4.5 million to the Intermediary Company, all or most of which was used to bribe Ghanaian government officials.”
“Berko crafted, developed and carried out the bribery scheme with the knowledge, or under circumstances that made it substantially certain, that all or a portion of the money paid to the Intermediary Company would be paid as bribes to Ghanaian government officials to secure support for the Power Plant Project.”
“Berko and the Energy Company timed the largest transfers of funds to coincide with key milestones in the approval process of the Power Plant Project so that funds would be available to bribe the corrupt officials who were in positions to help accomplish those milestones.”
The Securities and Exchange Commission says the Company (name not disclosed) funneled money to an intermediary which then paid bribes to Ghanaian officials.
Mr. Berko, is reported to have left Goldman Sachs in 2016.
The regulators say in addition, he personally paid bribes amounting to $66,000 to state officials.
The $66, 000 was said to have been paid to members of the Ghanaian parliament and other government officials.
In a statement, SEC observes that Mr. Berko tried to hide the scheme from the bank, whose compliance officers questioned how the deal was put together.
Accordingly, Goldman Sachs which ended its involvement with the project after the energy company purportedly refused to explain the intermediary firm’s role, the SEC’s legal complaint indicated.
“Goldman Sachs fully cooperated with the SEC’s investigation and as stated by the SEC in its press release, the firm’s compliance personnel took appropriate steps to prevent the firm from participating in the transaction,” said Nicole Sharp, a spokeswoman for Goldman.
“The energy company paid Mr. Berko $2 million for successfully coordinating the effort, the SEC alleges. The payments violated Mr. Berko’s employment agreement with the bank,” the SEC’s lawsuit observed.
Mr. Berko knew the bank stood to earn $10 million in fees if the energy company won the contract and organized financing for it, the lawsuit alleges. The deal would have “enhanced Berko’s performance and stature within” the bank, according to the SEC’s complaint.
In the suit, which was filed in Brooklyn Federal court, the SEC asks for Mr. Berko to pay fines and give back any compensation he earned through the scheme.
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By Melvin Tarlue