Identifier
Created
Classification
Origin
05ACCRA2619
2005-12-30 07:06:00
CONFIDENTIAL
Embassy Accra
Cable title:  

GHANA'S PRESIDENT REJECTS CORRUPTION ALLEGATIONS

Tags:  ECON EFIN PHUM PINR PREL PGOV GH 
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C O N F I D E N T I A L SECTION 01 OF 03 ACCRA 002619 

SIPDIS

STATE PASS USTR FOR LAURIE-ANN AGAMA
TREASURY FOR LUKAS KOHLER
USDOC FOR MARIA RIVERO
MCC FOR JONATHAN BLOOM

E.O. 12958: DECL: 12/27/2015
TAGS: ECON EFIN PHUM PINR PREL PGOV GH
SUBJECT: GHANA'S PRESIDENT REJECTS CORRUPTION ALLEGATIONS
AND DISMISSES CONCERNS OVER QUESTIONABLE PROCUREMENT
PRACTICES

REF: A. ACCRA 2517


B. ACCRA 2427

C. ACCRA 2425

Classified By: Ambassador Pamela E. Bridgewater for reasons 1.5 (d) and
(e)

Summary
-------
C O N F I D E N T I A L SECTION 01 OF 03 ACCRA 002619

SIPDIS

STATE PASS USTR FOR LAURIE-ANN AGAMA
TREASURY FOR LUKAS KOHLER
USDOC FOR MARIA RIVERO
MCC FOR JONATHAN BLOOM

E.O. 12958: DECL: 12/27/2015
TAGS: ECON EFIN PHUM PINR PREL PGOV GH
SUBJECT: GHANA'S PRESIDENT REJECTS CORRUPTION ALLEGATIONS
AND DISMISSES CONCERNS OVER QUESTIONABLE PROCUREMENT
PRACTICES

REF: A. ACCRA 2517


B. ACCRA 2427

C. ACCRA 2425

Classified By: Ambassador Pamela E. Bridgewater for reasons 1.5 (d) and
(e)

Summary
--------------

1. (C) President Kufuor rejected recent corruption
allegations (reftels) and assured his support for press
freedom during a December 21 meeting with Ambassador
Bridgewater. Ambassador warned Kufuor of the perception that
corruption is worsening in Ghana, and noted U.S. concerns
with lack of transparency in government procurement. Kufuor
argued the "perception" was incorrect, reiterated his
personal "zero tolerance" for corruption, and disputed claims
of mishandled tenders. He blamed the latest allegations on
the disgruntled ex-NPP party Chairman and the opposition NDC.
Post does not doubt the President's commitment to democracy,
rule of law, and press freedom, but we are disappointed by
his unwillingness to accept corruption as a problem and take
steps to address it. End Summary.

Kufuor: Ghana Respects and Supports Press Freedom
-------------- --------------

2. (C) President Kufuor dismissed allegations of corruption
in his administration (reftels) and insisted his government
was as decent as any in or out of Africa. The meeting
followed on the Ambassador's November 29 telephone
conversation with the President regarding the safety of
Raymond Archer, the Editor of local daily The Enquirer. As
Post reported Ref A, Archer secretly recorded NPP party
chairman Harona Esseku on tape discussing kickbacks from
government contracts, and implicating the President and his
top advisors. The Ambassador reiterated points delivered
during the 11/29 telcon, noting concern for Archer's personal
safety and emphasizing the importance of freedom of the
press.


3. (C) Kufuor agreed with Ambassador's statement on the

importance of freedom of the press, as well as for ensuring
the safety of investigative journalists. He said his
administration had supported press freedom since his election
in 2000 -- including "repealing the criminal libel law that
Rawlings governments used to lock people up" -- and would
continue to do so. Kufuor cited the press reporting since
the Ambassador's arrival in October as evidence of his
government's support for freedom of speech and expression.
Based on this period, he said the Ambassador would have to
believe Kufuor was a "thief, fool, or doesn't know his left
from right," and yet the government fully supported the right
of papers such as Archer's Enquirer to publish such
allegations.


4. (C) Kufuor stated he would never permit anyone in his
government to harm Archer or any other journalist, but also
noted that Archer had attracted a lot of hatred from private
Ghanaians who supported the NPP administration. Ambassador
urged him, nevertheless, to stay the course and ensure
journalists -- and Archer -- are protected. Kufuor reassured
her of his commitment to democracy, rule of law, freedom of
the press, and respect for human rights.


5. (C) The Ambassador also responded to Secretary to the
President D.K. Osei's accusation during the November 29
telephone conversation about "Mr. Scott" (PolChief Scott
Ticknor) meeting with and passing money to Archer (Ref A).
The Ambassador said PolChief considered Archer one of a
number of regular contacts in the media, met with him as a
normal part of his political duties, and had not paid him
money. She noted the Embassy's only direct support to Archer
was a Public Affairs Section IV grant to study investigative
journalism in the U.S. (Note: Kufuor did not respond
substantively to this explanation of Post's interaction with
Archer. End Note)

Perceptions of Rising Corruption
--------------

6. (C) Ambassador argued that the President should be
concerned by the perception of worsening government
corruption. She said she had heard this from businesses
(including AmCham companies),local think tanks, and other
diplomatic missions, in addition to the press reports and
recent public surveys (Refs B and C),and it was damaging
Ghana's excellent local and international reputation. On the
positive side, the Ambassador commended the President on the
significant progress the GoG was making towards completing a
Millennium Challenge Account compact.


7. (C) Ambassador also raised U.S. concerns with the
procurement process. Recent tenders highlighted the notable
lack of transparency in government procurement and compounded
the perception of growing corruption. In particular she
noted Hewlett Packard's failed bid for the national ID
project, coming in second to French company Sagem. She asked
if Kufuor planned to respond to her November 1 letter
requesting clarification of the deal (Note: The letter
questioned how Sagem could underbid the government's own $60
million estimate by more than $20 million; it also delineated
how Sagem's bid did not meet the tender specifications.
Compounding Post's concerns were reports that the President's
son Chief Kufuor worked as a consultant for Sagem, and Chief
of Staff Kwadwo Mpiani, who oversaw the process, had
manipulated it in favor of Sagem. End Note)


8. (C) The Ambassador also noted the bad press Kufuor had
received over the deal to build stadiums for the 2008 Africa
Cup games in Accra, where the government disregarded the
results of an international tender -- tentatively awarded to
Austrian company VAMED, with links to U.S. and UK companies
-- and signed a cheaper, sole-source deal with a Chinese
company. The Ambassador recognized that the Commerce
Department had not approved an advocacy petition from VAMED's
U.S. affiliate, but stated that the press reports that the
Chinese deal was corrupt added to Ghana's perception problem.

Kufuor: Corruption Reports Part of a Plot
--------------

9. (C) Kufuor acknowledged that corruption is common in
Ghana, but pointed out that it is a problem that preceded his
government. He said the "perception" of corruption was
incorrect, and reasserted his personal "zero tolerance" for
it, saying that when he knows of corruption he attacks it.
He blamed the latest corruption scandal on the disgruntled
ex-NPP party chairman, Harona Esseku, whom he called a
"frustrated old man" who spread untrue stories of government
kickbacks and corruption in The Castle after failing to get
Kufuor's support for another term as party chairman.


10. (C) Kufuor also suggested the various allegations were
part of a plot, involving the NDC and VAMED's supporters. He
said Raymond Archer's Enquirer had published both the tapes
of Esseku describing corruption within the ruling party NPP
as well as the story of the stadium deal with the Chinese.
He argued that The Enquirer had NDC financial support and
also noted that Archer's landlord was the Austrian Consul,
who had brought in and represented VAMED. Kufuor implied
that these various interests -- NDC, VAMED, Enquirer -- were
collaborating and urged the Ambassador to check the
background of The Enquirer before believing Raymond Archer's
allegations.


11. (C) Kufuor argued that he personally had rejected the
result of the stadium tender, because VAMED's winning bid was
for well over $300 million. He argued that Ghana could not
afford it, so he sent Education Minister Osafo Maafo to China
to meet with contacts he had made during a previous visit.
The Chinese bid was less than a third of VAMED's offer, which
was proof that Kufuor had acted in the best interests of the
Ghanaian public. (Note: while the Chinese offer is
substantially lower, it also excludes many of the
construction projects included in the original tender. So,
the two bids are not directly comparable. End Note)
Regarding the national ID tender award to Sagem, the
President stated that the contract had been fairly awarded.
However, he acknowledged that the Ambassador made a number of
technical arguments in her letter, and had asked his staff to
review them and prepare a response.

Comment
--------------

12. (C) While President Kufuor appeared sincere in his claims
that recent corruption allegations are false and government
procurements are appropriately handled, his refusal to admit
any fault on the part of his government was disappointing.
As reported reftels, there are numerous indications of
worsening corruption, nepotism, and cronyism, and we would
expect the President to react more proactively to address
these issues, in order to protect Ghana's reputation as a
good performer with an up-and-coming economy.


13. (C) That Kufuor saw nothing wrong with disregarding the
result of the stadium tender -- which conformed to the
requirements of Ghana's Procurement Act -- is particularly
worrisome. Whether or not the deal with the Chinese company
was better for Ghana, it was non-transparent and outside of
the established procurement process. This and the
questionable decision on the National ID project do not bode
well for U.S. companies interested in participating in
government procurements. This is not the way to entice more
foreign investment to Ghana.


14. (C) Kufuor came across as remarkably composed and calm,
given that the U.S. Ambassador had clearly outlined for him
the perception of growing corruption in his government. He
appeared satisfied with his own version of events, although
his accusation of an NDC/Enquirer/VAMED plot seemed
half-hearted. Nevertheless, this meeting signaled to
President Kufuor that the USG is informed and concerned about
corruption (and the safety of journalists) in Ghana. End
Comment
BRIDGEWATER