Former Finance Minister under the Presidency of John Mahama, Seth Terkper, has revealed to the Economic and Financial Court in Accra, that Dr Cassiel Ato Forson, his Deputy at the time, had his full backing to request for Letters of Credit from the Bank of Ghana with respect to the supply of ambulances by Big Sea General Trading Ltd of Dubai.
Mr Terkper made this known in his testimony as star witness in defence of Dr Ato Forson in the case involving Dr Ato Forson and two others for causing financial loss to the state through the purchase of the ambulances.
He told the court presided over by Justice Afua Serwaa Asare Botchwey, that he authorized Dr. Forson to request for the establishment of the Letters of Credit(LCs) was given at a special management meeting he chaired at the Finance Ministry, to enable Big Sea General Trading Ltd of Dubai supply thirty ambulances to the Ministry of Health
Mr. Terkper said that the LCs in question were set up on an “approval basis” which meant that the Ministry of Health had to indicate their approval of documentation from Big Sea proving the shipment of the ambulances and then proceed to authorize the Bank of Ghana to make payment under the LC if they were satisfied that Big Sea had met all conditions.
He said the establishment of the LC which fell within the purview of the Finance Ministry, was distinct from payment which had to be approved by the Ministry of Health and wondered how the Ministry of Finance could be blamed for any defects in the ambulances when the responsibility for ascertaining their state and condition rested with the Ministry of Health.
The former minister of finance said the meeting followed a legal opinion they received from the Attorney General and the Ministry’s Legal Department to ensure the execution of a contract between the Government of Ghana and Big Sea for the supply of 200 ambulances to avert the payment of judgment debt if Big Sea sued the government due to lengthy delays and breaches of the contract.
He said claims by the Attorney General that Dr. Forson caused the LCs to be set up without due cause and authorization were untrue.
Mr Terkper elaborated further in his witness statement that he received an opinion from the Attorney General in 2014 which said that failure to execute the contract with Big Sea would result in judgment debt.
Mr Terkper indicated that the AG’s opinion to him was emphatic that “all governmental approvals had been obtained” for the contract and that the opinion was binding on all government agencies engaged in the transaction.
Dr. Ato Forson has been charged with two counts of wilfully causing financial loss to the state by causing Letters of Credit to be established in favour of Big Sea for the supply of Ambulances “without due cause and authorization”.
In 2021, Deputy Minister of Finance, Dr Cassiel Ato Forson, and two others – Sylvester Anemana, a former Chief Director of the Ministry of Health and Richard Jakpa, a businessman – were charged with allegedly causing financial loss of €2.37 million to the state in a contract with Big Sea General Trading Ltd to purchase some 200 ambulances for the country between 2014 and 2016. They were slapped with five counts of wilfully causing financial loss to the state, abetment to wilfully cause financial loss to the state, contravention of the public procurement act and intentionally misapplying public property.
Dr Ato Forson’s main role in the case was that he issued letters of credit from the Bank of Ghana without due authorisation. Now though, Mr Terkper, who was his boss, the Finance Minister at the time, has told the Court that he duly authorised him to request the letters of credit.
