Cablegate: Former Foreign Minister Indicted for Corruption

VZCZCXRO9927
PP RUEHMA RUEHPA
DE RUEHAR #1125 2991129
ZNR UUUUU ZZH
P 261129Z OCT 09
FM AMEMBASSY ACCRA
TO RUEHC/SECSTATE WASHDC PRIORITY 8413
INFO RUEHZK/ECOWAS COLLECTIVE

UNCLAS ACCRA 001125

SIPDIS
SENSITIVE

E.O. 12958: N/A
TAGS: PGOV KCRM KCOR PREL GH
SUBJECT: FORMER FOREIGN MINISTER INDICTED FOR CORRUPTION

REF: (A) ACCRA 1068, (B) ACCRA 1085

1. (SBU) Summary: On October 14, the State Prosecutor indicted
former Foreign Minister Akwasi Osei-Adjei and former Chief Executive
Officer of the National Investment Bank (NIB) Daniel Gyimah on
corruption charges over their role in importing 10,000,000 Pounds
worth of rice from India during the former government. The charges
were brought in the Financial High Court, which required the former
officials to post bail of $150,000 in real property. The case
illustrates the high profile that corruption is receiving under
President Mills, and represents the first prosecution of officials
from the Kufuor government. End Summary.

2. (U) According to the charges, Osei-Adjei and Gyimah used theirgovernment positions to import some 300,000 bags of rice from India
between April 2008 and February 2009. However, they are alleged to
have diverted 2,997 bags of rice to private use, leading to a
financial loss to the state of about $1 million. The two former
officials are charged with stealing, causing financial loss to the
state, abuse of public office, conspiracy to commit crime, and
contravention of the Public Procurement Act. Osei-Adjei and Gyimah
both pleaded not guilty to the charges, and the case has been
adjourned until November 4, 2009.

3. (SBU) A highly placed member of the opposition New Patriotic
Party (NPP) told us October 20 that "something fishy happened"
regarding the rice deal, and said he believes Akwasi Osei Adjei
personally gained about $4 million from the deal. He also noted
that Daniel Gyimah, who was CEO of the State-owned bank, was a key
financier of the transaction, contracted with a company owned by his
son, and that friends handled the import of the goods.

4. (SBU) Comment: While there are several pending corruption
investigations involving the government of former President Kufour,
this is significant as the first case to result in the prosecution
of senior NPP officials. Revelations of corruption during the
Kufuor administration will take center stage and will likely remain
politicized. However, the fact that the President quickly fired two
National Democratic Congress (NDC) ministers implicated in the Mabey
& Johnson case (reftels) will make it difficult for the NPP to claim
Mills is pursuing a partisan vendetta. The previous government's
perceived inability to address corruption charges was an important
factor in Mills' election victory in 2008 and this case demonstrates
the President's seriousness in addressing public corruption. End
Comment.

FURUTA-TOY

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