EOCO to probe sacked PPA boss for money laundering

The Economic and Organised Crime Office (EOCO) would probe alleged inordinately large volumes of cash that passed through the bank accounts of the sacked Chief Executive Officer (CEO) of the Public Procurement Authority (PPA), Adjeinim Boateng Adjei.

This is contained in the report of the Commission on Human Rights and Administrative Justice (CHRAJ) which investigated the PPA boss over allegations of conflict of interest in a documentary by investigative journalist Manasseh Azure Awuni, titled “Contracts for Sale,” which the respondent, Adjenim Boateng Adjei, has denied through his solicitors.

However, the Commission said it could see from the records received from the Financial Intelligence Centre of the bank accounts of the respondent that he handled large volumes of cash exceedingly in excess of his known income as CEO of the PPA.

“The respondent opened USD Account Number 9040002473180 at the Stanbic Bank on 03 April 2017, after his appointment as CEO of PPA. As of 28 August 2019, a total amount of USD516,225 had been credited to the account, and his debits stood at USD504,607.87.

“In respect of his Cedi Account No. 9040002313337 at the same bank, opened on 21 January 2017 before his appointment, a total of 3.83 million cedis was credited, and 3.81 million cedis debited to the account between the date of his appointment as CEO and 29 August 2019.

“His Euro Account at the same bank also had EU54,500.00 credited and 37,333 debited for the same period, in addition to his UMB USD Account No. “428872” which had seen cash flow of over 110,000 USD between December 2018 and March 2019 alone,” the report noted.

It continued: “When confronted with the evidence of the sheer volume of cash that passed through his accounts, the Respondent indicated that Frosty Ice Natural Mineral Water Ltd does not have a bank account, and that proceeds from the sales of the water is lodged in his account. Frosty Ice Natural Mineral Water Ltd is the company the respondent owns with his wife, Mercy Adjei. He also claimed that he receives money from other family businesses but could not name the family businesses. The records from the Registrar-General show that Frosty Ice Natural Mineral Water Ltd was incorporated on 29th January 2019. So how could a company established in 2019 accumulate so much revenue in 2017 and 2018, before its establishment?”

Signed by the Commissioner, Joseph A. Whittal, the CHRAJ said the pattern of deposits and withdrawals raised suspicions about money laundering on the part of the dismissed CEO.

In the 188-page report on the matter, the Commission said the transactions were far in excess of his known income, but he could not provide satisfactory explanations (unexplained wealth).

“Besides the excessive nature of the volumes of cash, the pattern of the deposits and withdrawals also raised suspicions about the nature of the transactions.

“Accordingly, the Commission is referring the suspicious transactions in the Respondent’s bank accounts to the Economic and Organized Crimes Office (EOCO) for further investigation under the Anti-Money Laundering Act, 2008 (749) as amended,” the report said.

It was in accordance with section 18(1) of Act 456, that the Commission made the above recommendation among others after the probe.

The Commission’s report also stated that primarily, the investigation was initiated on the basis of conflicts of interest allegations. However, in the course of the investigation, the Commission came across evidence of seeming unethical practices by the company, Talent Discovery Limited (TDL), the company owned by the Respondent and his brother-in-law.

It furthered that in the circumstances the Commission was constrained to refer the evidence of the seeming unethical practices of TDL to the Registrar of Companies and the PPA for further investigation and appropriate action.

In its summary of key findings, the Commission said the TDL, which was incorporated in 2017, three months after the PPA CEO was appointed, had the latter as both director and shareholder.

It concluded that in effect, he had a personal interest in TDL – financial and relational.

The report added that though Adjenim claimed to have resigned as Director in September 2017, all relevant official records of the company showed that he remained a Director at all material times.

“The evidence supports the allegation that TDL participated in a number of restricted tenders, which applications came before the Respondent in his capacity as CEO of PPA and member of the Board of PPA for approval. TDL was awarded 10 contracts through restricted tender between June 2017 and 22 August 2019. However, the evidence did not support the allegation of award of contracts through sole sourcing,” CHRAJ said.

In its decision, the Commission, having found as facts that Mr Adjenim had put himself in several positions where his personal, relational, and pecuniary interest in TDL and other companies actually conflicted with the performance of the functions of his office as CEO and Board Member of PPA, the Commission held that he had contravened article 284 of the 1992 Constitution.

“Given all the circumstances, including the overwhelming evidence and Respondent’s explanation and spirited defence, the Commission considers the following actions as appropriate and proportionate having regard to the result of this investigation: The Commission has determined that the Respondent is unfit to hold public office and is, therefore, disqualified from holding any public office for a period of five years. Accordingly, it is hereby directed that no appointing authority of the state should engage or appoint the Respondent (Mr. Adjenim Boateng Adjei) into any public office, however, described for the said five (5) year period, beginning from the date of this Decision.

It continued that: “Consequent upon the above determination of His Excellency the President of the Republic of Ghana, as the appointing authority of Respondent, should terminate the appointment of the Respondent as CEO of the PPA.”

On commendations, the Commission’s report commended President Akufo-Addo for promptly submitting the complaint together with the documentary and requesting expeditious investigations into the allegations of conflict of interest against the Respondent.

It said: “This is the second time in the history of the Commission that a sitting President has brought a complaint before the Commission in respect of his own appointees. The first was former President Jerry John Rawlings in the mid-1990s.”

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