The prosecution’s first witness (PW1), Yaw Odame-Darkwa, a former board member of the Ghana Infrastructure Investment Fund (GIIF), told the Criminal Division of the High Court in Accra that the Accra Sky Train Project was a pipeline project that never got board approval.
The sky train project was one of several projects at different stages of development that were presented to the Investment Committee (IC) and the board as part of GIIF’s project pipeline, according to Mr Odame-Darkwa, who testified under intense cross-examination by Victoria Barth, counsel for the first accused (A1), Solomon Asamoah, former CEO of GIIF.
On Wednesday, the witness appeared before the court, which was presided over by Her Ladyship Justice Audrey Kocuvie-Tay.
PW1 maintains that the lack of official board approval was caused by the sky train project’s failure to complete all required approval procedures, including comprehensive third-party due diligence by outside experts.
Counsel for A1 directed PW1 to Exhibit 5, the minutes of a June 2019 GIIF board meeting, during cross-examination.
The witness attested to the fact that Ms. Nana Agya Ababio, the IC chairwoman at the time, gave reports from IC meetings on May 23 and June 13, 2019, including an update on the project portfolio.
PW1 acknowledged that the On-Dock Container Terminal, Platinum Plaza, Woodfields Fuel Storage Depot, and other projects were featured with the Accra Sky Train Project.
He emphasised, nevertheless, that a project’s inclusion in IC or board updates did not imply approval.
“The update you see here is the project pipeline – all the projects that come to the IC,” PW1 clarified, noting that some of the projects on the list, like the Woodfields Fuel Storage Depot, were never funded while he was in office.
He further explained to the court that due diligence was “the most important aspect” of the GIIF approval process.
The Auditor-General’s Report (Exhibit 20), which mentioned a US$2 million payment to the Accra Sky Train Project, was shown to the witness by counsel.
PW1 admitted that item 925 of the report said the payment was paid on February 20, 2019, after first pointing to the incorrect item.
PW1 acknowledged that GIIF does not routinely distribute money for pipeline projects that were not approved, but he maintained that he was not aware of the disbursement at the time and only learnt about it after leaving the board.
PW1 refused to acknowledge that he knew or should have known about the transaction when asked if the 2019 and 2020 financial statements, which he and other board members authorised, revealed the payment took place during his tenure.
He frequently told the court, “I don’t agree,” but he didn’t contest the truth of the financial statements or the Auditor-General’s report.
The witness agreed that written board minutes are official records of proceedings and that personal memories cannot take precedence over them. Additionally, he affirmed that board members had a chance to amend minutes before to adoption.
Although PW1 acknowledged that later board minutes included updates on the Accra Sky Train Project, they maintained that these revisions did not constitute approval.
He also concurred that while the board approved a US$1 million investment in the Asian Infrastructure Investment Bank (AIIB) unconditionally, it approved conditional approvals for other initiatives, such as the US$10 million further investment in the Platinum Plaza Project.
In contrast to the sky train project, he attempted to differentiate the AIIB investment on the grounds that it was a reputable and well-known multilateral development organisation.
When questioned, PW1 admitted that, like directors under the Companies Act, GIIF board members have fiduciary duties under Section 10 of the GIIF Act, including the obligation to use independent professional judgement.
He also revealed that while serving on the boards of two banks, he received necessary corporate governance training.The witness also testified about the Audit Committee’s role in budget development and approval, stating that he delivered the 2020 draft budget to the board in January 2020.
Counsel for A1 also challenged him with an email dated January 25, 2019, purportedly sent by Solomon Asamoah to board members discussing an addition to the 2019 budget projections, which PW1 confirmed receiving.
The court set January 22 as the date for the commencement of cross-examination.
Source: newsthemegh.com