Seth Terkper admits €2.37m Payment For Ambulance Was In Error

Seth Terkper admits €2.37m Payment For Ambulance Was In Error

Seth Terkper, the former Finance Minister, has acknowledged that he paid the wrong amount for the substandard ambulances that his subordinate, Dr. Cassiel Ato Forson, is currently on trial for.

In addition to this acknowledgement, Mr. Terkper was unable to produce a specific document in which he gave permission for Dr. Forson to write to the Controller and Account General’s Department (CAGD) and ask for the creation of the letters of credit (LC), which served as the ambulances’ payment method.

He further admitted that prior to the loan arrangement outlined in the contract being signed, the Bank of Ghana (BoG) ought not to have established the letters of credit for the payment of the ambulances.

Under cross-examination by Attorney General Godfred Yeboah Dame, Mr. Terkper also confirmed that prior to Dr. Forson’s letter seeking the creation of the letters of credit, no contract had been written in accordance with the arrangement for the delivery of the ambulances.

“Are you saying that the BoG should not have proceeded to establish the LC until the loan agreement had been signed?” Mr. Dame asked.

“Yes, that is what the contract specifies and therefore it is the responsibility of the Ministry of Health to ensure that this provision relating to signing the contract had been made before payment were made,” Mr. Terkper responded.

“It is your case that the payment for the ambulances was made in error?” Mr. Dame further asked.

“Yes, but nothing that major conditions in the contract had been breached and attention had been drawn to it by the Attorney General,” Mr. Terkper said.

Additionally, Mr. Dame questioned the former Finance Minister about whether or not any contracts for the 50 ambulances specified in the contract agreement had been signed prior to the Ministry of Finance’s approval for the establishment of the LC.

“It is not my recollection that this was done but I had confidence in the AG and in my own staff who requested that we should establish the LC to avoid default,” Mr. Terkper answered.

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