Ato Forson Ambulance case: Govt breached contract clause on LCs —Jakpa

The businessman, Richard Jakpa, who has been accused of causing financial loss to the state in an ambulance deal, has denied responsibility for the loss.

He claimed that the government breached certain clauses of the contract agreement, specifically clause 5.1, by establishing letters of credit (LC) directly with Big Sea, the principal company, instead of his company, Jakpa at Business.

Under cross-examination by the Attorney-General, Jakpa explained that this breach relieved his company of any responsibility for the financial loss. He also revealed that he had commenced a civil suit which resulted in the Commercial Division of the High Court ruling that all LCs should be established in the name of Jakpa at Business.

“All LC should be established in the name of Jakpa and the court was surprised how government was able to establish the LC in the name of Big Sea”.  Jakpa also clarified that 28 per cent of the amount paid under the transaction went to his company, but he couldn't specify the exact figure.

Seal

When asked by the Deputy Attorney-General, Alfred Tuah-Yeboah, to identify the designation of the minister on the seal of the letter requesting the establishment of the LCs, Jakpa claimed the writing was not legible.

The court also admitted into evidence a letter allegedly written to dismiss Jakpa from the Ghana Armed Forces (GAF) due to misconduct and breach of military protocols. Jakpa's lawyers had objected to the tendering of the letter, but the presiding judge, Justice Afia Serwah Asare-Botwe, allowed it as evidence.

Jakpa and Dr Forson have been accused of causing financial loss to the state in a deal to purchase 200 ambulances between 2014 and 2016. They have pleaded not guilty to charges, including willfully causing financial loss to the state, abetment, contravention of the Public Procurement Act, and intentionally misapplying public property.

The case involves a complex web of contracts, payments and breaches, with the government alleging that Jakpa's company received payments for ambulances that did not meet specifications, and were therefore "not fit for purpose". The trial continues, with the court set to hear further evidence and testimony in the coming days.

Background

In 2009, the then-President, Prof. John Evans Atta Mills, announced plans to purchase new ambulances to expand the operations of the National Ambulance Service. Jakpa's company, Jakpa at Business, was appointed as the local representative of Big Sea General Trading Limited, a company based in Dubai, to supply the ambulances.

Parliament approved the financing agreement between the government and Stanbic Bank, and the letters of credit were established in favour of Big Sea. However, the government alleged that Jakpa's company received payments for ambulances that did not meet specifications, resulting in a financial loss to the state.

The trial has been ongoing for several months, with both sides presenting evidence and witnesses. The court's decision is eagerly awaited, as it will determine whether Jakpa and Dr Forson are liable for the alleged financial loss to the state.