A Supplementary Report of the Auditor-General on the financial and procedural improprieties in the divestiture of the Nsawam Cannery, dated January 2006, which was intercepted by the Crusading Guide newspaper, has indicted former first lady Nana Konadu Agyeman Rawlings and former finance minister, Kwame Peprah.
The Auditor General said having observed the sale and purchase agreement it was detected that Mr. Kwame Peprah, former Finance Minister; Nana Konadu Agyemang Rawlings, former first lady and President of the 31st December Women's Movement- owners of Caridem Development Company Limited – and Mr. E.A Agbodo, former executive secretary of DIC, falsified the outstanding balance of ¢7,941,298,870.97 owned by Caridem as at December 31,2002, and inserted in its place a lower figure of ¢1,320,776,440 “with the intent to deceive the Government of Ghana.
According to the Report, a memo form one Vivienne Gadekpo dated 18/10/99 to the executive secretary on the subject, GIHOC Cannery Nsawam stated in an earlier request from him (executive secretary) that 'it is virtually impossible
To draft a sale and purchase agreement based on the offer letter dated March 27, 1995. This is because the entire amount is long overdue rendering the terms redundant'.
The Auditor- General stated in this report that my conclusion based on the receipts, statements of payments and sale and purchase agreement that was signed on October 5, 2000, was that the directors of Caridem and the company, together Mr. E.A Agbodo, Mr. Kwame Peprah and Nana Konadu Agyemang Rawlings acted together to fraudulently cause the Government of Ghana to make substantial financial loss.
He therefore referred the matter to the director of CID, Ghana Police Service, for further investigation. Further more, Caridem should take steps to settle the indebtedness of 21,147,145,136.45 cedis as at December 31, 2005 to DIC.
Touching the genesis of the Divestiture of GIHOC Nsawam Cannery to Caridem, the Report revealed that a letter No DIC/1/1/039 dated February 2, 1995 and signed by Mr. E.A Agbodo maintained that Caridem had fulfilled the terms of the agreement, but that was not true.
“ Mr. Agbodo wrote the letter to fraudulently assist Caridem to take over Nsawam Cannery and thus causing substantial financial loss to the Government of Ghana,” it asserted.
Official receipts issued by the DIC to Caridem showed that Caridem issued cheques, “ Fraudulently to deceive DIC, to cover two or more debts”.
On receipt number 0002216-dated 30-1-97,cheque number 756098 for 35,500,000.00 cedis was issued in payment for GNTC Supermarket, Dansoman, GNTC Bakeries & Nsawam Bakeries without indicating the amount each payment. Also on receipt number 002814-dated 9-7-95 for cash payment of ¢15,000,000, it was just stated on the face of the receipt of ¢10,000,000 and ¢5,000,000 for Nsawam Cannery and GNTC Bakery.
“ In spite of all these over whelming evidence that Caridem had not fulfilled the terms of the divestiture agreement, Mr. Emmanuel A. Agbodo contended that Caridem had fulfilled the terms of the agreement, and allowed Caridem to take over the GIHOC Nsawam Cannery” the Report said.