Africa-Press – Ghana. The Office of the Attorney-General will next year prosecute Wontumi Farms and its directors with defrauding by false pretences, forgery and causing financial loss to the state in the sum of GHS24 million.
This figure, the Attorney-General, said represented the principal sum plus the interest that had accrued so far from a loan facility taken by Wontumi Farms Ltd from Exim Bank.
Wontumi Farms Limited is a corporate entity established by Bernard Antwi Bosiako, the New Patriotic Party (NPP) Ashanti Regional Chairman, also known as Chairman Wontumi.
Dr Ayine made the disclosure when he presented the final investigations reports into some cases by the Economic and Organised Crime Office (EOCO) at the Government Accountability Series Press briefing at the Presidency in Accra.
He noted that by the time the charges were filed after the Christmas break, the amount could increase because of the compound interest on the principal.
He said in March this year, the Economic and Organized Crime Office arrested Chairman Wontumi on reasonable suspicion of the commission of a crime. He said Chairman Wontumi was the sole shareholder, director and chief executive officer of Wontumi Farms Limited.
He said the arrest was pursuant to credible intelligence gathered by the EOCO that the company and its director and CEO were involved in a fraudulent transaction in connection with a purported loan facility granted by the Ghana Exim Bank under the Mining Alternative Livelihoods Initiative of the Bank.
He noted that the Alternative Livelihoods Initiative was designed by Exim Bank to provide alternative sources of livelihoods for the youth in areas of the country affected by illegal mining.
Dr Ayine said in doing so, the Bank intended that the loans under the programme would go to companies committed to ensuring the realization of the objectives of the initiative, especially in relation to job creation for young persons in mining communities.
He said in December 2017, Wontumi Farms Limited submitted its application for a loan of Ghs18 Million purportedly to cultivate maize on 100,000 acres of farmland and to employ the youth on the farm.
He said at the time that the application was submitted by Wontumi Farms Limited together with a purported board resolution, the company was not registered; declaring that “in short, the company did not exist at the time of the loan application by its sole shareholder and director”.
Dr Ayine said investigations established that Wontumi Farms Limited was incorporated on December 14, 2017, and issued a certificate to commence business on the same day.
He said the principal business activities of the company, as stated in its corporate registration documents, were general farming, agribusiness and agro-processing. Dr Ayine said the directors of the Company were Bernard Antwi Boasiako and Thomas Antwi Boasiako with Bernard Antwi Boasiako being 100 per cent shareholder of the Company and also listed as company secretary.
He noted that Thomas Antwi Boasiako was believed to be the brother of Bernard Antwi Boasiako domiciled in the United States.
He said prior to the registration of Wontumi Farms Limited, Chairman Wontumi wrote to Exim Bank that the board of directors of Wontumi Farms had met on December 9, 2017, and had resolved to seek a loan facility of GHS19 Million from the Bank to support its farm project at Asare Nkwanta in the Ashanti Region under the Mining Alternative Livelihood Initiative.
He said the application letter stated among other things that the credit facility was meant for a farming venture and that the company had secured 100,000 acres of land for that purpose.
Dr Ayine said on January 16, 2018, based on the application submitted by Bernard Antwi Boasiako, chief promoter of Wontumi Farms, Exim Bank approved a medium term-loan facility of Ghs18,734,260.00 which included a grant component of Ghs6,768,260.00.
He said this offer was accepted via a letter dated January 23, 2018, and Chairman Wontumi, acting as the Chief Executive Officer of Wontumi Farms Limited and Thomas Antwi Boasiako, as director of Wontumi Farms Limited.
He said the offer letter indicated that the approval of the medium-term loan facility was subject to the Bank’s terms and conditions.
The Attorney-General said the loan offer letter further stated that the loan was secured with 10,000 acres of the farmland of Wontumi Farms Limited at Asare Nkwanta.
He said the breakdown of the approved Ghs18,734,260.00 loan as per the offer letter were: Purchase of agricultural plant and machinery – GH₵3,865,000.00
Working capital – GH₵8,101,000.00 and
Grant -staff cost and consultancy fees – GH₵6,768,260.00.
Dr Ayine said that it was clear from investigations that Chairman Wontumi and his company, Wontumi Farms Limited, made fraudulent misrepresentations to Exim Bank with a view to obtaining the loan facility and in fact did obtain the loan facility.
He said the equipment they represented were to be purchased, were never procured.
He said the farming enterprise never materialized, and so no young persons were employed in Asare Nkwatia.
He said, however, more importantly, the company and its director and CEO forged a receipt in order to deceive Exim Bank that they were in compliance with the loan conditions.
He said these were not mere breaches of a loan contract but acts of criminality by no means a person than the regional chairman of the then ruling Party.
“In the circumstances, and in the face of the evidence gathered in this investigation thoroughly conducted by the Economic and Organized Crimes Office, the decision has been made to prosecute Wontumi Farms and its directors with defrauding by false pretences, forgery and causing financial loss to the state in sum of GHS24,255,735,” Dr Ayine said.
“This figure represents the principal sum plus the interest that has accrued.”
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