| It
has emerged that the Ghana Cocoa Board (COCOBOD) has saved the nation a
whooping US$50 million in the controversial multi-million dollar
agreement between the Dr. Stephen Opuni-led COCOBOD and companies of
businessman Seidu Agongo for the supply of fertilizers worth $46.4
million. This was contained in a final ruling by the Tribunal that sat on the matter. It could be recalled that the businessman, Seidu Agongo and others were seeking to force COCOBOD to take delivery of some fertilizer worth over $46.4m, a contract he entered into with the former COCOBOD Boss, Dr. Opuni. The said contracts with three of Seidu Agongo’s companies; Agricult Ghana Limited, Sarago Ltd and Alive Industries Ltd, were signed on December 19, 2016. The companies involved Agricult Ghana Limited, was billed to supply Lithovit liquid fertilizer estimated at $26.5 million, Sarago Limited, was contracted to supply Duapa Fertilizer worth $14 million and Alive Industries Limited, had been contracted to supply Acati Power estimated at $5.960 million. However, the Ghana Arbitration Centre unanimously held that the agro-chemical products did not go through ‘proper testing’ protocols and therefore the claimant, Seidu Agongo, is not entitled to the whopping $46.460 million sought as relief against COCOBOD. It emerged that Stephen Opuni, former Chief Executive of COCOBOD under the erstwhile Mahama administration, who was the respondent in 2014, 2015, and 2016 entered into various agreements with the Claimant, Agongo to supply various quantities of agro-chemicals for use on cocoa. After the 2016 general elections, the matter of the contracts for agro-chemicals was deliberated upon by the Transitional Team set up to oversee the handover of the reins of government from the outgoing administration to the incoming administration. However, the Transitional Team noticed some malpractices in the testing of agro-chemicals at CRIG and therefore recommended among others, that the new management of Respondent should, upon assumption of duty, conduct full investigations into the matter. Upon taking office in February 2017, the new management of Respondent conducted preliminary investigations into the testing and certification of agro-chemicals and found that some of them, including claimants’ agro-chemicals Lithovit Fertilizers, Duapa Fertilizer and Acati Power Insecticide did not go through the full testing cycle before certification. COCOBOD being the regulator, has a system for testing and certification of chemicals and fertilizers for use on cocoa, hence the system for testing was conducted by Respondent’s Division, the Cocoa Research Institute of Ghana (CRIG) which has the mandate, among others to undertake research into diseases and pests’ problems affecting cocoa and other crops, as well as into soil fertility and agricultural practices. It also has a system for the testing and certification of chemicals and fertilizers for use in cocoa. In respect of the Lithovit fertilizer, the COCOBOD specifically accuses the 1st Claimant (Agricult Ghana Limited) of fraud. Agricult Ghana Limited, by submitting powdery Lithovit for testing and subsequently submitting a quotation for liquid Lithovit and Dr. Stephen Opuni’s (i.e. the Respondent’s then Chief Executive) request and actually supplying liquid Lithovit, was fraudulent because the liquid fertilizer was not what was tested by the CRIG. The Respondent (COCOBOD) averred that the 2015 to 2016 contracts entered into with the Claimant were based on the results of the testing of the powdery and not the liquid product which the Claimant supplied to the Respondent, meaning that the contract were procured by fraud. The Tribunal ruled that the two 2015 contracts and 2016 contracts executed with the 1st Claimant arose out of a “fundamentally fraudulent report” generated by an officer of CRIG, Dr. Afrifa (the Chief Scientist), in collusion with Dr. Opuni and the Claimant, and intended to unjustly enrich themselves. It also indicated that the 1st Claimant falsely misrepresented in it quotation of 26th February 2014 that the Liquid Lithovit was to be manufactured in and imported from Germany, thereby, quoting it sale price in US dollars, when in fact, it was manufactured in the Claimant’s facility in Ghana. Contrary to laid down procedures, the 1st Claimant did not apply for renewal of its initial certificate, though its certificate was renewed for 2015 and 2016 by officers of the Respondent without conducting the requisite field and laboratory tests. “In support of its allegation of collusion between the 1st Claimant and Dr. Opuni, the Respondent claims that in its procurement practices, the norm is that a request to procure an item is regenerated by a user department, but the request for procurement of the Lithovit Fertilizers was initiated by r. Opuni without recourse to any user department,” the Tribunal ruled. The ruling by the Arbitration Chaired by revered nana Dr. S.K.B Asante means that the Joseph Boahen-Aidoo led COCOBOD has saved the nation about $50M. |
| Source: The Ghanaian Observer |
COCOBOD Floors Opuni, Seidu Agongo – Saves Almost $50m In Shady Fertilizer Deal
