Construction Pioneers receives €94m Ghana judgment debt without paying tax
The Public Accounts Committee (PAC) of Parliament has established that Construction Pioneers Ltd (CP) was owing the government 284 million deutsche marks and GH¢5.2 million in tax liabilities at the time the government entered into an agreement to pay the company 94 million euros as settlement debts.
Irrespective of this, CP was able to claim the 94 million euros without paying what was due the government in respect of its tax liabilities to the state.
This came to light at the committee’s sitting Thursday at Parliament House.
When asked why the amount was not deducted when CP’s claims came up for payment, Mr Enoch Cobbina, Chief Director of the Ministry of Finance and Economic Planning, said documents for both the claims by CP and its tax liabilities should have been prepared simultaneously to enable the tax to have been deducted while the claims were being paid.
He said, however, that the CP’s claims were prepared separately and as a result the company’s tax liabilities were not captured by officials in charge of the Public Sector Financial Management Systems of the Ministries, Departments and Agencies.
Mr Cobbina conceded that he learnt about CP’s tax liabilities to the state as far back as 2005 in a report prepared by Mr James Quarshie, an official of the Ministry of Finance in charge of special duties, who compiled a report on CP’s activities.
He said since parliamentary approval was not obtained before the tax was waived for CP to walk away without paying the tax liabilities, the action amounted to a breach of the Constitution which stipulates that only Parliament has the mandate to waive taxes in respect of companies in the country.
Mr Cobbina said the Ministry of Finance authorised the payment based on a letter from the Attorney General (AG) and Minister of Justice because its officials were certain that the Attorney General had done her homework with due diligence before sending a memo to the Ministry of Finance to pay and they had no reason to doubt the integrity of the AG.
At this juncture the chairman of the committee asked whether they could make payment of that colossal amount based only on the memo from the Attorney General and Minister of Justice which was signed without a witness and without a proper title, to which the Chief Director replied that, that was outside the normal practice.
When the members of the committee asked for the authorisation limit for officials in respect of cheques, Mr S. P. Kyei, Director of Budget at the Finance Ministry, said directors at the ministry had authorisation limit of GH¢50,000 and any amount above that had to be referred to the higher authority such as the chief director whose authorisation limit was GH¢I00,000.
He said a Deputy Minister’s authorisation limit was GH¢300,000 and any amount above that had to be referred to the Minister of Finance and Economic Planning.
Mr Kan-Dapaah and the committee members were surprised that basic controls such as insisting on the provision of supporting documents before payments were made as it was the practice in the payment systems, were breached.
They wondered why the alacrity used to honour payments to companies like CP was missing when it came to retrieving monies due to government from such companies.
Mr Kan-Dapaah called on public officials to put an end to such unpatriotic attitude and let the government’s interest become paramount in such matters.
Source: Daily Graphic
I was the first CP member in Ghana 1976 , was General Manager
from 1977 – 1979 — 1985 – 1988 ………..
Iam very surprised and wondering …….is unbelievlabel !!!!!
Carl Ploetner began operations in Ghana in 1975 .Carl Ploetner Ghana ltd was registered under Ghana law with 100,000 ordinary shares in Ghana. Carl Ploetner Ghana ltd was a joint Company with a local partner called Mijinyawa Mahatma General Contractor Company in Bawku Ghana in 1975.
We the family of the late Mijinyawa Mahama of Bawku have all the valid documents proof that it was a joint company between Carl Ploetner gh ltd and Mijinyawa Mahama a general contractor of Bawku in 1975.And it was a fifty fifty percent shares each.Bernhard Ploetner an d the late Mijinyawa Manama signed on the agreement documents in Ghana on 5 August,1975.
Carl Ploetner gh ltd which is later became Construction Pioneers gh ltd.
(.MAHAMA &SONS LTD.General Contractor.A letter to Carl Ploetner on 7May,1982 by Mijinyawa MAHAMA of Bawku). Dear Carl Ploetner/ I told you of the development of some disease in me . For the past 3 years fell sick and I am now incapacitate (Half Paralisis) on the right side. As a Partner and Friend I would be grateful if you would endeavour to send me to your country for treatment. I hope you will send some one to come and bring me down because I have trust in you. I believe your company is functioning well. Best compliment to you and all your friends.Yours Faithfully. M. MAHAMA AND SONS.
REINHOLD OSCAR HITLER signed on the joint company agreement between Mijinyawa Mahama and Sons ltd of Bawku and Carl Ploetner gh ltd in 1975. Reinhold Oscar Hitler signed as a witness on behalf of Carl Ploetner gh ltd in 1975
In one of the Court cases involve Bernhard Ploetner pension the name of Reinhold Oscar Hitler ,saying he send down Reinhold Oscar Hitler in 1975 for registration of Carl Ploetner gh ltd in 1975
I mean Bernhard Ploetner mention the name Reinhlod Oscar Hitler.This same man Hitler signed the Principle and Management agreement of the joint company called Mahama Ploetner Construction Company Ltd.
Bernhard Ploetner was the Executive Chairman in the joint company called Mahama Ploetner Construction Company Ltd In 1975 according to the Management Agreement of the joint company in 1975 while Reinhold Oscar Hitler signed as witness on behalf of Carl Ploetner Ghana Limited in 1975
The STATUTORY DECLARATION FORM of the joint company between Mijinyawa Mahama and Sons ltd and Carl Ploetner gh ltd in 1975 on which the company was named MAHAMA PLOETNER CONSTRUCTION COMPANY LIMITED,was signed by Mijinyawa Mahama of Bawku,Bernhard Ploetner of West Germany and the joint company secretary who signed was Emmanuel Mettle Sackey of Accra and the Commmissoner of Oats name was K.D. GWIRA in 1975.
Dugbartey was Major General in 1970s he signed on behalf of Mijinyawa Mahama and Sons ltd as witness to the Principle agreement and Management agreement between Mijinyawa Mahama and SonsLtd and Carl Ploetner gh ltd in 1975.
EMMANUEL METTLE SACKEY was the secretary of the joint company called Mahama Ploetner Construction Comapny Ltd in 1975.Emmanuel Mettle Sackey signed on the STATUTORY DECLARATION FORM of the joint company shares in 1975.Mijinyawa Mahama of Bawku signed,Bernhard Ploetner of Bremen signed.
KOBINA DENIEL GWIRA was the commissioner for Oats (K.D.) GWIRA who commissioned the joint company called Mahama Ploetner Construction Company Ltd statutory declaration shares Form in 1975.
Mijinyawa Mahama procured the incorporation of the joint company being registered with 100,000 ordinary shares of no value divided into 50,000 “A” shares and “B” shares.
Issiful Ali & Co were the Auditors of the joint company Mahama Ploetner Construction Company ltd in 1975.While the OPERATIONAL NAME was Carl Ploetner gh ltd in 1975.
THE JOINT COMPANY NAME:Mahama Ploetner Construction Company ltd. OPERATIONAL NAME: Carl Ploetner gh ltd.
THE DIRECTORS OF JOINT COMPANY name MAHAMA PLOETNER CONSTRUCTION COMPANY LTD IN 1975 were MIJINYAWA MAHAMA OF BAWKU AND BERNHARD PLOETNER OF BREMEN WEST GERMANY.
Carl Ploetner Ghana Limited was registered under Ghana law with 100,000 shares in 1975.And the joint company name MAHAMA PLOETNER CONSTRUCTIOn N COMPANY LIMITED was also registered with the same 100’000 ordinary shares in 1975.According to the ( The Ghana Investment Policy Decree in 1975).The requirement has been reached.
THE GHANA INVESTMENT POLICY DECREE IN 1975.
The joint comapny agreement between Mijinyawa Mahama and Son ltd a general contractor of Bawku and Carl Plotner gh ltd was signed on 5 day of August in 1975 and the first Carl Ploetner gh ltd signed was in December 1975 which the road stretch from YAMORANSA TO TAKORADI in 1975 december in which the contract completion in between 1978 to 1979.
The first Carl Plotner gh ltd contract was a WORLD BANK project from YAMORANSA TO TAKORADI ROAD stretch in DECEMBER 1975.
In the 19 -page SFO report from 2002 the information regarding the local joint venture is primarily found on 2 through 4,Which cover the company”s historical background and its legal registration in Ghana.The specific local company mentioned in relation to the original joint venture is MAHAMA Ploetner Construction Company Limited.The report highlights that Construction Pioneers (CP) did not start purely foreign entity but as a joint venture formed in 1975.Here are the key details found in that section of the report Partnership Structure.The Venture was a 50/50 partnership between Mijinyawa Mahama(a prominent general contractor from Bawku) and Bernhard Ploetner(representing the German interests).Opertioanal Name Change: The report notes that while the legal joint venture name was Mahama Ploetner Construction Company Ltd,the firm began eventually began operating under the name Carl Ploetner Ghana Limited(and later simply Construction Pioneers).The “Fronting” Allegation:The SFO used these pages to argue that over time, the foreign partners( the Ploetner) effectively sidelined the local partner.By the time of the 2002 investigation,the SFO alleged that CP was operating as a foreign-controlled entity while still benefitting from the local status and Tax considerations established during the 1975 joint venture.
CARL PLOETNER GHANA LIMITED change to CONSTRUCTION PIONEERS GHANA LIMITED but CARL PLOETNER NIGERIA LIMITED remains the same.
In 1977 to 1980s the NIGERIA Indigenous law of local participation in the construction policy was stronger than in GHANA.BARNABAS GEMADE was the SeniorManager/Site for Carl Ploetner in (1979-80).
MAHAMA PLOETNER CONSTRUCTION COMPANY LIMITED IN 1975 AND REPBLIIC v HIGH COURT, ACCRA;EX PARTE PLOETNER[1984-86] 2 GLR 107-133. SUPREME COURT, ACCRA 24 MARCH 1986
MAHAMA PLOETNER CONSTRUCTION COMPANY LIMITED IN 1975 IS THE BEST EVIDENCE AGAINST REPUBLIC V. HIGH COURT , ACCRA; EX PARTE PLOETNER [1984-86] 2. GLR 107-133 SUPREME COURT,ACCRA 24 MARCH 1986
REINHOLD OSCAR HITLER name was in both Principle agreement and Management agreement of the joint company name Mahama Ploetner Construction Company. Limited 1975. Ploetner mention Reinhold Oscar Hitler name in matter of the REPUBLIC v . HIGH COURT, ACCRA: EX PARTE PLOETNER [1984-86] 2 GLR 107-133. SUPREME COURT, ACCRA. 24. MARCH 1986.
CARL PLOETNER GHANA LIMITED AND MIJIINYAWA MAHAMA. AND SONS LIMITED IN 1975.
Mahama Ploetner Construction Company Limited in 1975 which was a joint venture between Carl Ploetner gh ltd and Mijinyawa Mahama and Sons ltd 1975. While Carl Ploetner gh ltd and in Trust with Mr. Martin Ofusohene in 1976.1975 and 1976 which is which
Joint Venture in 1975 and Trustee in 1976 which was first and followed the The GHANA INVESTMENT POLICY DECREE IN 1975, MIJINYAWA MAHAMA OR MR MARTIN OFUSOHENE?