Former Board Chairman of the Ghana Infrastructure Investment Fund (GIIF), Professor Christopher Ameyaw-Akumfi, has told the High Court in Accra that the controversial Accra SkyTrain project was duly considered and approved by the Fund’s Governing Board before the release of US$2 million for the investment.
Professor Ameyaw-Akumfi, who is the second accused in the trial involving the alleged financial loss to the state over the uncompleted SkyTrain project, said the Board did not simply approve the project without scrutiny.
In his witness statement filed before the High Court, presided over by Justice Audrey Kocuvie-Tay, he said the proposal was first subjected to GIIF’s established investment process, including consideration by the Investment Committee.
He said the project was subsequently presented to the Governing Board at its meeting on October 24, 2018, where it was considered alongside other projects. “Following the deliberations of the Board, the SkyTrain Project was approved,” Professor Ameyaw-Akumfi stated.
He stressed that the approval was the result of the established institutional process, which involved consideration by the Investment Committee followed by presentation and consideration by the Governing Board.
According to him, “the procedure adopted for the SkyTrain project was the same as for every other approved project of GIIF and there was no departure in relation to the AI SkyTrain project.”
US$2m transfer
Professor Ameyaw-Akumfi said that following the Board’s approval, he was presented with a letter dated February 25, 2019, instructing GIIF’s bankers to transfer US$2 million to Africa Investor Holdings Limited as payment for GIIF’s equity shares.
He explained that his involvement in the transaction was because GIIF’s disbursement policy required the Board Chairman to countersign transactions above GH¢500,000.
He, therefore, countersigned the transfer instruction together with the then GIIF Chief Executive Officer, Solomon Asamoah, who is the first accused in the case.
“My signature on the transfer instruction was therefore not an independent decision by me to commit GIIF’s funds. It was an act performed in my official capacity and pursuant to the established signing arrangements applicable to transactions of that nature,” he said.
The former Board Chairman further stated that the Finance or Accounts Department was responsible for ensuring that the necessary approvals, supporting documents and procedural requirements were in place before the transfer was processed.
GIIF received share certificate
Professor Ameyaw-Akumfi also told the court that after the acquisition, GIIF received a certificate evidencing the equity shares acquired from the Special Purpose Vehicle (SPV).
He said the certificate was consistent with his understanding that the transaction had been completed as an investment by GIIF and that the Fund had acquired an interest in the SPV for the consideration paid.
He further stated that the project was captured in GIIF’s financial statements and annual reports and was presented to the relevant Advisory Committee as an approved investment.
According to him, reputable audit firms, including PricewaterhouseCoopers (PwC) and Deloitte Ofei and Boateng, audited GIIF’s accounts during his tenure and did not characterise the AI SkyTrain investment as a loss. He added that the investment was also captured in the Auditor-General’s report, which, he said, did not characterise the investment as a loss.
COVID-19 and end of tenure
Professor Ameyaw-Akumfi attributed the failure of the project to take off, during his period of involvement, partly to the outbreak of the COVID-19 pandemic, which he said materially affected the commencement and implementation of the project. His tenure as Chairman of the GIIF Board ended in December 2020.
He told the court that after leaving office, he no longer had any authority to direct the affairs of GIIF, supervise its management, instruct its officers or monitor its investments.
He said a new Governing Board was constituted in January 2021 and responsibility for the governance and oversight of GIIF thereafter rested with the new Board and executive management.
“I had no capacity, after my tenure ended, to direct or compel the new Board or the management of GIIF to track, monitor or take any particular action in respect of the SkyTrain investment,” he stated.
Emergency meeting
Professor Ameyaw-Akumfi also addressed an emergency Board meeting which, according to him, had been relied upon to suggest that concerns were raised about the approval of the SkyTrain project.
He said the meeting was sanctioned by him as Board Chairman and that no Board member, including prosecution witnesses PW1 or PW2, raised an objection that the project had not been approved by the Board.
“The fact that an emergency meeting was subsequently convened did not alter or invalidate the Board’s approval of the Project,” he stated.
Professor Ameyaw-Akumfi maintained that throughout his involvement, the SkyTrain investment went through GIIF’s institutional process, including Investment Committee consideration, Governing Board approval and the subsequent financial process for implementation. He also denied personally benefiting from the transaction.
“I have at no material time personally enriched myself in any way in relation to the AI Skytrain project,” he stated, adding that he discharged his duties with dedication, integrity and in accordance with his fiduciary responsibilities to GIIF and the Republic of Ghana.
Professor Ameyaw-Akumfi and Mr Asamoah are standing trial over allegations surrounding the US$2 million investment in the uncompleted Accra SkyTrain project.
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