An Accra High Court has heard how Dr. Stephen Opuni while in charge at the Ghana Cocoa Board (COCOBOD) under the Mahama NDC administration allegedly signed a contract for the supply of fertiliser for the 2014/2015 crop season with an expired certificate from the supplier.
Director of Finance at COCOBOD, Peter Osei Amoako, told the court about Dr. Opuni’s letter to the Public Procurement Authority (PPA) to single source the purchase of 700,000 litres of lithovit liquid fertiliser at an estimated price of $19.25 million.
The company that was given the contract was Agricult Ghana Limited owned by businessman Seidu Agongo, who was on trial alongside his company and Dr. Opuni, charged with causing financial loss to the state.
Evidence-in-chief
Mr. Amoako, who is the sixth prosecution witness in the trial, told the court that the letter dated December 10, 2014, was addressed to the CEO of PPA, with the heading “Application for approval to procure fertilisers for cocoa Hitec programme for 2014/15.”
He said the request was for 700,000 litres, of lithovit fertiliser with a unit per price of $28.5 with an estimated cost of $19.5million. The document was tendered with no objection.
Sole Sourcing
In his evidence-in-chief led by Director of Public Prosecutions (DPP), Yvonne Atakora-Obuobisa, the witness told the court that PPA approved the request made by Dr. Opuni to sole source lithovit fertiliser for 2014/15 in a letter dated December 31, 2014.
The witness told the court that the basic requirement of awarding a contract to a supplier was a valid certificate issued by CRIG for the fertiliser.
But for the contract that was entered into by Dr. Opuni and Agricult Ghana limited for the supply of 700,000 litres of lithovit fertiliser on February 6, 2015, the certificate that was attached to the contract had expired on December 31, 2014.
The witness said a certification of award signed by the CEO (Dr. Opuni) and a certificate from the Cocoa Research Institute of Ghana (CRIG) expired in December 2014, but there was no certificate before the signing of the contract.
Legal Objection
Samuel Codjoe, counsel for Dr. Opuni, raised an objection over the CRIG certificate attached to the contract, saying there should be a mistake somewhere since the CRIG certificate could not be the one attached to the contract since it expired in December of the previous year.
He said they would have had no objection if the proper certificate was attached.
DPP’s Opposition
The DPP described the objection as ‘strange’ since the certificate was attached to the contract, saying it was for them to explain why as CEO Dr Opuni failed to notice that he was signing a contract with an expired certificate.
She said that was part of their case and it was absolutely untrue that “we have in this court tendered a valid CRIG certificate for 2015, because it does not exist.”
The prosecution said the document was coming from proper custody, absolutely essential and relevant for the conduct of the case as charges included the conduct of Dr. Opuni for the supply of lithovit for 2014/15.
“It is our case that he signed this contract even though Agricult did not have the valid certificate at the time that it was being signed,” he said.
Objection Overruled
The court presided over by Justice Clemence Honyenuga, a Supreme Court judge sitting with additional responsibility, upon hearing the arguments, said the document ought to be admitted into evidence because it was relevant.
The judge said if counsel had any issues with the document, he would have the opportunity to cross examine the witness on it.
2015/2016 Season
The witness also told the court about how Dr. Opuni signed another contract with Agricult for the supply of a million litres of lithovit for the 2015/2016 crop season.
He said COCOBOD wrote to the PPA to seek approval to procure a million litres of lithovit fertiliser at a cost of $26.5million.
The PPA granted the approval for COCOBOD to go ahead with the procurement and a notification of award was issued to the supplier, who submitted a performance guarantee.
The certificate of Agricult Ghana Limited expired on December 31, 2015 but COCOBOD went ahead and signed a contract with the company for the supply of a million litres of lithovit liquid fertiliser.
Payment List
Giving the litany of payments allegedly made to Agricult, the witness said the first payment, was made on August 13, 2014 by a letter of instruction to the Ghana International Bank for the transfer of $11 million from COCOBOD’s account to the beneficiary: Royal Bank/Agricult Ghana Limited.
He also said the transfer of the $11 million was for 400,000 litres of lithovit liquid fertiliser out of 700, 000 litres procured by COCOBOD.
The witness said the second payment was made on October 15, 2014, instructing the Ghana International Bank to transfer $8.25 million to Agricult Ghana Limited to their Stanbic Ghana Limited account.
He said the transfer was the final payment for the supply of 300,000 litres of lithovit liquid fertiliser for the contract to supply 700,000 litres ordered by COCOBOD.
Attached was the suppliers invoice, inspection of lithovit, a copy of the contract, a notification of award, account details from Agongo, a copy of COCOBOD’s bank statement from GIB confirming the transfer and a swift advice confirming credit to Agricult.
The DPP asked the witness to explain to the court how the procurement was done in 2013/2014 crop season.
Budget Plan
The witness said 2014/15 procurement started after approval of the budget and then the procurement plan.
The witness said a request for quotation was submitted by Agricult Ghana Limited but per the records “I did not see any request to the company from COCOBOD but I have the quotation being submitted by Agricult for the supply of lithovit liquid fertiliser.”
He said after that COCOBOD then wrote to the PPA for approval to secure lithovit liquid fertiliser.
He said PPA then approved the request from COCOBOD and the board issued a notification of award to the supplier.
“The supplier responded with a performance guarantee, after which, the contract was signed between COCOBOD and Agricult for the supply of 700,000 litres of lithovit liquid fertiliser at a cost of $19.95million.
“You have said that you cited a quotation from Agricult for the supply of lithovit liquid fertiliser for 2014/15. Take a look at this,” the DPP asked and the witness said, “I have here a letter dated November 19, 2014, addressed to Dr. Opuni, for the supply of lithovit liquid fertiliser at a unit price per litre of $28.5 signed by Seidu Agongo.”
Opuni Application
The prosecution asked the witness if he told the court that COCOBOD through Dr. Opuni applied to the PPA for approval to single source fertiliser from Agricult and the witness answered in the affirmative.
He said a letter dated December 10, 2014 addressed to the CEO of PPA, heading “Application for approval to procure fertilisers for cocoa Hitec programme for 2014/15.”
He said the product was lithovit, the quantity was 700,000 litres, the unit per price was $28.5, estimated cost $19.5million and signed by Dr. Opuni.
He said after that the PPA approved the request made by Dr. Opuni to sole source lithovit fertiliser for 2014/15 in a letter dated December 31, 2014 with a heading: “RE: Application for approval to procure fertilisers for cocoa Hitec programme for 2014/15” granting approval for COCOBOD to procure 700,000 litres of lithovit for 2014/2015 addressed to Dr. Opuni.
He said after the approval, a contract was signed between COCOBOD and Agricult for the supply of lithovit fertiliser, adding that the agreement was made on February 6, 2015 and was signed on behalf of COCOBOD by Dr. Opuni and on behalf of the supplier by Seidu Agongo.
The witness said a certification of award signed by the CEO and a certificate from the Cocoa Research Institute of Ghana (CRIG) expired in December 2014 but there was no certificate before the signing of the contract.
Dr. Opuni and Mr. Agongo are facing 27 charges, including defrauding by false pretences, willfully causing financial loss to the state, money laundering, corruption by a public officer and contravention of the Public Procurement Act.
They have both pleaded not guilty to the charges and are on a GH¢300,000.00 self-recognisance bail each.
Sitting continues on November 12.
BY Gibril Abdul Razak with Additional Files from GNA