Akufo-Addo’s Lawyer, ‘Jubilee House’, Implicated in Ibistek, GIIF Booty-sharing.
A legal brawl among the directors of Ibistek Limited, a Ghanaian estate development company, has exploded into a ruthless, dog-eat-dog affair, uncovering a scandalous US$8 million windfall from a murky share transfer deal with the Ghana Infrastructure Investment Fund (GIIF).
The fallout from this “chobo” or cream-off is revealing explosive details that are now dragging the erstwhile Akufo-Addo government into the mess.
The core of the dispute centers on a principal character, Professor Kwame Djan, a prominent law lecturer at the University of Ghana and the Executive Director and Board Chairman of Ibistek.
According to a demand notice dated December 8, 2023, Djan is accused of diverting US$3.4 million of the ill-gotten gains into his private Access Bank account.
This alleged act of greed was the catalyst. The US$8 million itself was apparently not a problem and might have remained a secret, but when Prof. Djan reportedly siphoned off a portion, his co-directors and Ibistek founders, Nana Yaw Boahene and Eric Owiredu Akrofi, moved to oust him.
Instead of returning the money, Prof. Djan has taken the fight to court, seeking to block his removal and revealing a treacherous web of accusations against his colleagues. This litigation has become a goldmine of information, exposing the shady deal with GIIF and the fact that the state lost millions of dollars in the process.
The Shady Deal and the Jubilee House Connection
According to a final demand notice from Ibistek’s lawyers, Gaisie Zwennes Hughes & Co, the diverted US3.4 million was part of a larger US8 million payment.
This money was meant for “transaction advisors” after Ibistek’s subsidiary, Atlantic Terminal Services Limited (ATSL), sold a 16% stake to a Turkish firm, Yilport Ghana Holdings Limited, for US$34 million.
Here’s where it gets interesting: ATSL was a “special purpose vehicle” set up with GIIF to develop and manage an on-dock terminal at the Takoradi Port.
GIIF had financed the entire project, but the arrangement was structured in a way that GIIF and Ibistek co-owned the shares.
The Turks demanded a 51% controlling stake to take over operations. They bought 35% from a Nigerian partner (AFC) for a whopping US$78 million but still needed 16% more. Ibistek then approached GIIF to sell the state’s 16% share. The then-CEO of GIIF refused.
Enter Philip Addison, President Akufo-Addo’s lawyer and the newly appointed Board Chairman of GIIF. He reportedly wrote to President Akufo-Addo, seeking executive intervention to force the deal through.
The President allegedly gave his approval, and Addison issued a “no-objection” letter, clearing the way for the dubious transaction.
Addison told TNR reporters that the decision was a collective Board decision, and he sees nothing wrong with it.
“I am not a valuer but to the best of my knowledge the board took a decision based on sound grounds”, Kwame Djan stretched in a conversation with this paper.
What he failed to acknowledge however is that, as a lawyer he ought to have known better that his role as the Board chair preclude him from interfering with administrative duties of the company.
The New Republic’s investigation reveals that compared to the US78 million Yilport paid for AFC’s 35% stake (which had no sovereign guarantees), the US34 million for Ghana’s 16% was a raw deal for the state.
Out of this paltry sum, US$8 million was carved out for “transaction advisors,” and it is from this pot that Prof. Djan allegedly diverted the US3.4 million. In the end, Ghana, the financier of the entire terminal, received a meager US24.6 million.
Accusations and Counter-Accusations
In his defense, Prof. Djan claims the US$3.4 million diversion was consensual, alleging the decision was made at a board meeting where his co-directors were present or represented.
He is now accusing Nana Yaw Boahen of orchestrating his removal because Boahen has been misappropriating company funds and using Ibistek’s name for personal, shady business dealings, including bid-rigging on government contracts.
As Prof. Djan’s lawsuit continues, more secrets are tumbling out of the closet, including claims that some directors allegedly forged documents for Agenda 111 Hospitals contracts under the Akufo-Addo government, squandered the funds, and failed to deliver.
This is a classic tale of thieves falling out, and the unfolding drama promises more bombshells.
More Anon!