The letters of credit requested by former Deputy Finance Minister, Cassiel Ato Forson prior to purchasing some ambulances for the country were only good on condition of the fulfilment of the conditions of the contract.
This was said by the Health Minister, Kwaku Agyeman Manu, during his testimony before the High Court (Economic and Financial Division 2) on Thursday, July 21, 2022.
The Health Minister, while under cross-examination, admited that, letters of credit are not payments in themselves but guarantees of promise of payment upon certain conditions being met.
He however insisted that the “request” of Mr. Ato Forson to the Central Bank to establish letters of credit, served as an “instruction” to the Bank for the purpose.
Ato Forson who is currently the Ranking Member on Parliament’s Finance Committee has been accused of “instructing” the establishment of letters of credit in favour of Big Sea without recourse to the “Ministry of Health as well the Commercial Agreement that was signed between Big Sea and the Ministry of Health”, in the purchase of the controversial 50 ambulances.
On the issue of liability of Dr. Ato Forson in “requesting” the establishment of the letters of credit, the Health Minister also conceded that it was “not unusual in the public service for a Deputy Minister to sign a letter on behalf of a substantive Minister.
This, he maintains, must however be done “under express instruction”, “or with the Minister’s approval”.
The Minister insisted that where a Deputy Minister signs a letter “on the blind side of the Minister,“ then [the said Deputy Minister] can be cited for personal liability.
When quizzed as to whether he was aware that the then Finance Minister, Seth Terkper, confirmed authorizing Dr. Ato Forson to request the letters of credit, Mr. Kwaku Agyeman Manu said he was “not aware.”
The case has been adjourned to July 26, 2022.
Posted by: Emmanuel Romeo Tetteh.
