Three LOC officials cited for theft

Pages 24/25: Daily Graphic, November 13, 2009.
Story: Albert K. Salia
THREE persons, including the former Chief Executive of the Local Organising Committee (LOC) for the Africa Nations Hockey Championship in Ghana, Mr Magnus Rex Danquah, have been cited by the Serious Fraud Office (SFO) for allegedly attempting to steal GH¢72,141.50 belonging to the state.
The other suspects are Mr Herbert Prebi, a Principal Auditor at the Audit Service, and one Ebenezer Lomotey.
Deferring his comments on the SFO’s findings till later, Mr Danquah said he would prefer to wait till a committee which was auditing the LOC’s accounts finished its work before making any statement on the issue.
According to the SFO, its investigations had revealed that after the completion of the July 2009 hockey tournament, which Ghana hosted, some amount of money was left in the LOC’s account at the Bank of Ghana which Messrs Lomotey and Danquah decided to withdraw for their personal use.
It said Mr Prebi, who was seconded to the Ghana Education Service, was contacted to find a company to assist in withdrawing the money.
The SFO findings indicated that Mr Prebi, on agreeing to assist in withdrawing the money, renewed an enterprise registration of his company, IBERP Enterprise, which, until then, had become dormant.
It said an account was then opened at the Makola branch of the International Commercial Bank (ICB), with number 10260259504, in the name of IBERP Enterprise.
It noted that the plot was to fake supplies of furniture and other office equipment and five cheques were issued to cover a range of items on five vouchers and sent to one Mr Jones Ocloo for verification and processing, after Mr Danquah had authorised the "ghost" transaction.
According to the SFO, the cheques were then lodged into the account of IBERP Enterprise at the ICB.
“Messrs Danquah, Lomotey, Ocloo and Prebi then met in Mr Lomotey's office at the Ministry of Youth and Sports to decide on a formula for sharing the booty,” it noted.
It alleged that at the said meeting, the parties adopted a formula to distribute the net amount of GH¢72,141.50, with Mr Danquah due to take GH¢25,000; Mr Lomotey, GH¢10,000; Mr Jones Ocloo, GH¢10,000; Mr Prebi, GH¢10,000, while GH¢10,000 was set aside for Mr Lomotey, the external auditor.
It said fake VAT returns of GH¢7.141.50 was paid to Mr Prebi, bringing the total sum to GH¢72,141.50.
The investigators indicated that the cheques for withdrawing the money were not issued in bulk to any of the conspirators.
Instead, Mr Prebi allegedly issued between three to four cheques to each of the conspirators and post-dated them to be cashed as and when they were due.
It said when investigations started, GH¢3,200 withdrawals had been made, of which Mr Lomotey took GH¢2,000 and Prebi GH¢1,200.
It said Mr Prebi had also cashed GH¢700 and withdrawn GH¢8,350 and sent to Mr Danquah through Lomotey.
The SFO said the suspects were made to refund the amounts they had withdrawn from the account so far, including the tax component deducted in favour of IBERP Enterprise.
“An amount of GH¢15,928 was retrieved and paid into the LOC 2009 Hockey Account, while the balance stands frozen in the ICB account belonging to IBERP Enterprise,” it said.
The Executive Director of the SFO, Mr Biadela Mortey Akpadzi, confirmed to the Daily Graphic the submission of such findings to the Ministry of Justice and Attorney-General but declined further comment on the issue.
“I suggest you wait until we go to court when all the facts and all that you need to know will be put before the court,” he said.