Wikipidia defines ‘fraud’ as wrongful or criminal deception intended to result in financial or personal gain.

The synonyms for ‘fraud’ include, swindling, scam, hanky-panky, shenanigans, crookedness, embezzlement, deceit, monkey-business and rip-off.

The Economic and Organised Crime Office (EOCO) is said to have forwarded a case docket involving an alleged $36 million procurement fraud of electric meters, to the office of the Attorney-General for prosecution.

The $36 million procurement fraud is reported to have taken place in the Republic of Ghana in 2016.
The submission of the case docket to the office of the Attorney-General follows the conclusion of over four good years of investigations into ‘the fraudulent matter’ by the EOCO and the National Security.

Many concerned Ghanaians and institutions have questioned the long delay in the investigations and prosecution of officials involved in the ‘procurement fraud’.

The fraud was alleged to have ‘germinated’ in September 2016 when L&R Investments and Trading Company, which is incorporated in China, entered into a contract with the Government of Ghana, to supply electric meters to the Electricity Company of Ghana. Reportedly, the contract was to be executed within a period of 26 weeks, and an advanced payment of $12 million was made to L&R Investments plus a Letter of Credit for $24 million.

The 2020 Auditor-General’s Report on state-owned institutions, however, revealed that the meters, which were procured at a huge cost to the state, were abandoned by the Electricity Company of Ghana (ECG) because they were not manufactured to meet the required specifications.

A brief background of the fraudulent deal dates back to September 2016, when the then Ministry of Power wrote to the Managing Director of the ECG , alerting him of a-$40-million financing, secured by the Government of Ghana for the procurement of electric meters.

Reportedly, the letter named Messrs L&R Investments, whose local representatives are Messrs First Grace Limited, to be given the contract to supply the meters.

The ECG management, upon the receipt of the letter from the Ministry of Power engaged Messrs L&R Investments and their local Ghanaian representatives. After ECG had evaluated the proposals from L&R Investments, a pre-contract meeting was said to have been held in October 2016 between the technical team of ECG and the Managing Director of L&R Investments Company. Reportedly, at that meeting, the scope of supply; technical classifications; due diligence; pilot studies; factory acceptance tests and training of ECG metering staff were agreed upon.

Indeed, the two key conditions before the supply of the meters after signing the contract were; the pilot studies to assess the meters for two months and the factory acceptance tests. Sources, however, say :”The 200 electric meters that were to be provided as samples for the pilot studies were not taken to the ECG and the agreed travel of three representatives from ECG to undertake the factory acceptance tests in China before manufacturing of the said meters , did not take place.”

The Executive Director of the Institute for Energy Policies and Research (INSTEPR), Mr Kwadwo Poku, insists that; “without any of these conditions being met, the management of ECG was sent shipping documents for containers of meters at the Tema Port.” Expectedly, the ECG management notified L&R Investments that they could not accept the meters because the processes agreed upon per the contract had not been followed.

Disturbingly, the meters in the containers were not the specifications as per the supply contract, when the containers were cleared at the Tema Port. According to the Executive Director of INSTEPR, the contract was terminated in 2017 after legal consultations but strangely, the company was able to discount the $24 million Letters of Credit given to them under the contract. “We have sighted documents that state that on the 16th of August 2017, at a time when Capital Bank had ceased to be a bank under the laws of Ghana; Capital Bank discounted the Letters of Credit and made a payment of $22.5 million to L&R Investments”, the Executive Director of INSTEPR, has said.

For instance, Mr. Kwadwo Poku is asking the following relevant questions: “Why has it taken four years for the state security agencies in investigating this transaction? “Who are the people behind L&R Investments and Trading Company in Ghana? “The initial $12 million was paid to First Grace Limited, their local representatives in Ghana.

Who are the people behind the Ghanaian company? “Why is the management of Capital Bank not being prosecuted for the illegal discounting of the Letters of Credit?” Readers, the initial investigation into the fraudulent electric meter-deal was reportedly carried out by Kroll and Associates; a corporate investigations and risk consulting firm contracted by the government to investigate various transactions under former President Mahama’s administration.

Readers, remember? How Mr Yao Domelovo, the immediate past Auditor-General was angered by the audits of Kroll and Associates, sanctioned by the then Senior Minister, Mr Yaw Osafo Maafo ? The $36 million fraudulent deal was among other deals uncovered by Kroll and Associates.

A lot of well-meaning Ghanaians, however, hold the view that our government has been ‘very slow’ in taking action about this very disturbing fraudulent act. And this column challenges the government to quickly do the needful!!! Contact email/ WhatsApp of author: asmahfrankg@gmail.com (0505556179)

By G. Frank Asmah