The Republic Newspaper HOME POLITICS SPORTS BUSINESS ENTERTAINMENT HEALTH STORIES WORLD NEWS GALLERY CONTACT November 13, 2014 at 9:52 am Pension Suckers $2.24m Obotan Scandal: The Devils in the Detail Posted by The Republic 1The opposition New Patriotic Party’s (NPP) sponsorship of civil agitations against the government’s latest arrangment to safeguard the 2nd Tier Pension Fund of workers has exposed serious double standards of the main opposition party as facts emerge of the party’s cover-up of “criminal” and “fraudulent” acts pepertrated against workers pension funds several years ago by its leading members. A 2003 Serious Fraud Office (SFO), now referred to as the Economic and Organised Crime Office(EOCO) report available with the Republic newspaper indicted several leading members of the party, including NPP financier, Mr. Ken Ofori-Atta, the cousin of the NPP’s flagbearer, Nana Addo Dankwa Akufo Addo as having defrauded pensioners in the infamous Obotan scandal. The scandal involved Ken Ofori-Atta and his conspirators fleecing the Social Security and National Insurance Trust (SSNIT) of over US$ 2.24 million in a phony residential property project by misrepresenting HFC Bank, misusing SSB Investments without the knowledge of the Bank, and using his Directorship of Enterprise Insurance and Databank to perpetuate fraud on pension funds. When the SFO report was released to the then Attorney General and Minister of Justice, Nana Akufo Addo, no action was taken by the state to secure justice for the people of Ghana. The SFO proffered criminal charges bordering on conspiracy and fraud on Ken Ofori-Atta and his partner Kelli Gadzekpo, Ekow Awoonor, a Director of SSB investment (A company which Ken Ofori-Atta was a Director and held major stakes in). Others were George Otoo, a Director at Enterprise Insurance (which belongs to Ken Ofori-Atta and Kelli Gadzekpo), Mr. Charles Asare, the then Director-General of SSNIT and Daniel Seddoh, a Director at Obotan Developers Limited. These individuals are all linked to the NPP and were major players during the party’s regime between 2000 and 2008. The charges were the outcome of an investigation triggered by the erstwhile NPP administration of John Agyekum Kufour. Even though the SFO issued a comprehensive report that shoud have forced the Akufo Addo’s cousin and his conspirators to face trial, the then Attorney General swept the report under the carpet. Till date, the Republic can confirm that the architects of what the SFO report found to be a fraud against workers fund, were shielded by the NPP government, although it is the most blanttant fraud yet, committed against workers pension fund in thi country, under the Social Security and National Investment Trust (SSNIT). According to critics, the NPP’s feverish attempt to discredit the current government’s arrangment to select a Corporate Trustee to oversee the running of the newly initiated 2nd Tier Pension scheme is a deliberate ploy to hide its past questionable dealings with pensioners’ fund. It is mindboggling to many that after sucking $2.24 million of pension funds with nothing to show in return, the same NPP bigwigs are using treacherous means to get their hands on another tranche of pension funds. The Obotan scandal broke in 2000 when it was discovered that the Treasurer of the Akufo Addo 2008/2012 Campaign, Mr. Ken Ofori-Atta and his friends conspired officers of SSNIT into a phantom real estate project in the heart of Accra named Obotan Development Project. According to the investigative report of the SFO, the clique of individuals involved in the Obotan Project arm-twisted SSNIT to part with US$ 2.24 million for the project which never took off. The indicted individuals involved in the Obtan scandal used Enterprise Insurance Company Limited, Home Finance Company Limited and SSB Investment Limited; and Databank Investments to front for the Obotan Project. According to the report, Charles Asare, Director General of SSNIT was who appears to have an interest in the deal was instrumental in facilitating events from SSNIT’s end. “The names of the Directors and shareholders of the companies involved in the Obotan project indicate very close business relationship among the companies, the Directors and Shareholders. Ken Ofori-Atta and Kelli Gadzekpo are shareholders and Directors in all the companies…The acts of these companies in the Obotan project were effectively the acts of these two persons. Daniel Seddoh being an employee of Enterprise Insurance is effectively acting under the instructions of Ofori-Atta; and Ekow Awoonor is acting with Ken Ofori-Atta in SSB investments,” the report stated. Under the Obotan project, the investors were supposed to acquire a property known as the Massila House located in a prime area in Accra and was to be converted into luxurious residential properties. However, unknown to the general public before the Obotan investment was proposed to SSNIT, Massilia House had already been bought by Enterprise Insurance which belongs to Mr. Ofori-Atta and Kelli Gadzekpo who were incidentally the main facilitators of the project. The 2008/2012 Campaign Treasurer used the name of HFC Bank and did misrepresent the bank as partners of the Obotan project, yet the management and board of HFC bank had established no communication with Mr. Ken Ofori Atta to that effect. According Mrs Baeta Ansah, the then Managing Director of HFC Bank, her company never at any time responded to the request made by Mr. Ken Ofori Atta inviting her bank to partner in the Obotan project. She was therefore amused that the NPP financiers (Ken Ofori-Atta and Kelli Gadzekpo) used the name of her bank to trick SSNIT into paying the huge sums of money. “According to the Secretary of SSB, Mrs. Marian Barnor the subsidiary SSB Investments was created to contain certain non-performing investments of the bank. Ken Ofori Atta and Ekow Awoonor being directors of SSB were appointed Directors of SSB investments. From that position, the two men used SSB Investments for the Obotan Project without the knowledge of approval of the SSB Board of Directors”, the report stated. Facts from the SFO investigations revealed that the Massila House was bought from CFAO by Enterprise Insurance for 300 million old Ghana cedis (about US$125,000) however they claimed Enterprise Insurance invested US$1.8 million. Enterprise Insurance therefore misled SSNIT into paying $2.24 million for that same edifice. Since the property was sold to Obotan by Enterprise Insurance (a member of the Obotan fraud), it smacked of a case of conflict of interest and calculated fraud on pensioners in Ghana. Another shocking revelation captured in the SFO report was that, Mr. Ken Ofori-Atta who used his Databank Brokers, his Enterprise Insurance and his Directorship of SSB Investments to mislead SSNIT into paying the $2.24 million turned around to pocket US$300,000 as fees for services rendered to the phony project. The SFO report submitted to Attorney General Nana Akufo Addo further stated: “The same consideration applies to the legal and advisory fees. It must be clear that these services were rendered by parties involved in the project as shareholders or directors” ‘The conspirators’ charged as much as US$ 300,000 on fees including legal fees, advisory fees, mobilization fees and Agent fees. Hidden identity of promoters The 38 page document which is the basis of SSNIT’s participation in the project is not dated and its authors identities are not stated. The statement on the first page that Home Finance Company Limited and Enterprise Insurance and SSNIT are the “proposed investors” did not make them the authors. “A document that is effectively an invitation to investors to participate in a residential development project, must state who the promoters are in the first place and secondly what their relationship is to the enterprise being promoted and finally what they themselves stood to gain in the project. The absence of these facts is an indication of an intention on the part of the promoters not to fully disclose their aims in the project”. By: therepublicnewsonline facebooktwittergoogle_pluslinkedinrssyoutubeby feather facebooktwittergoogle_plusredditpinterestlinkedinmailby feather Share this:
Posted on: Sat, 27 Dec 2014 20:08:41 +0000
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