The Minister for Health, Kwaku Agyemang Manu, says he would eat back his words that advance payment was made for the purchase of some ambulances before letters of credit were established if substantial documents prove otherwise.
This was as Mr. Agyemang Manu under cross-examination by Dr. Abdul Aziz Bamba, defence counsel for the former Deputy Finance Minister, Dr.Cassiel Ato Forson, yesterday, that he was not privy to some documents in relation to the procurement of the ambulances.
With that Dr. Bamba suggested to the Health Minister that “In [the] light of your lack of knowledge about the submission of documents to the paying bank, will you still maintain your view that there was advance payment in the ambulance transaction?” to which the latter answered, “Yes I will until I get some evidence.”
According to the counsel there was evidence before the court, presided over by Justice Afia Serwaa Asare-Botwe, that the Ministry of Health approved all payments under the Letters of Credit for the purchase of the ambulances.
The following are some questions and answers from the cross-examination:
Q. You have stated in your testimony that the contract that was executed between government through the Ministry of Health and Bank of Ghana did not allow for advance payment. Is that correct?
A. Yes.
Q. And you have also confirmed that Letters of Credit are not payments, but guarantees of payment subject to certain conditions being met?
A. That is correct.
Q. Is it your testimony that as far the ambulance contract was concerned an advice payment was made to Big Sea?
A. That is so.
Q. I suggest to you that no advance payment was made to Big Sea?
A. I do not agree to that.
Q. You admitted in your testimony that payment for the ambulances was done by Letters of Credit?
A. That is correct.
Q. Have a look at Exhibit B. Read clause 4 on the terms of the payment?
A. Reads. There shall be no advance payments…
Q. What do you understand by the term Letters of Credit on sight of goods?
A. To establish Letters of Credit as guarantee of payment…
Q. Letters of Credit on sight of goods means payment is made when the required documents are presented to the bank?
A. Yes.
Q. And in this particular transition, the Bank of Ghana made payment only after the requisite documents had been presented to the recipient bank. Are you aware of that?
A. No.
Q. I suggest to you that payments under the Letters of Credit were made upon the requisite documents had been presented to the paying bank?
A. I am not aware of any requisite documents submitted to any bank that will meet the requirements to enable the bank to make the payments. My lady, Exhibit C on page 6(a) …copy of pro forma invoice… these are documents that were supposed to be submitted to the bank, and as I said, I am not aware any of these were presented.
Q. I am putting to you that these documents were submitted to the paying bank?
A. I still insist that I am not aware.
Q. And the Ministry of Health was aware of the submission of these documents?
A. I have stated that through my search at the Ministry, I have never sighted any correspondence that indicated so.
Q. And there is evidence before this court that the Ministry of Health approved all payments under the Letters of Credit?
A. I am not aware of any such documents.
Q. In the light of your lack of knowledge about the submission of documents to the paying bank, will you still maintain your view that there was advance payment in the ambulance transaction?
A. Yes, I will until I get some evidence.
Q. Are you also aware that it was the Controller and Accountant General who wrote to the Bank of Ghana to establish the Letters of Credit for the ambulances?
A. I am not aware of that.
Q. Have a look at Exhibit B. Read the second paragraph?
A. You are hereby advised to establish an irrevocable Letters of Credit of…
Q. Who signed the exhibit?
A. The Deputy Controller and Accountant General.
Q. So you will agree with me that when you stated that A1 (Ato Forson) instructed the Bank of Ghana to establish Letters of Credit that wasn’t correct?
A. My Lady, can I make reference to Exhibit A. I will like to read the whole text. Reading. “Heading: Request to establish Letters of Credit. It is a letter to Governor of Bank of Ghana for the establishment of Letter of Credit of €3.950m for 50 ambulances in favour of Big Sea. This was signed by A1, and I rely on this letter.”
When I go back to Exhibit B, it makes reference to the Ministry of Finance letter of request.
To be continued
