The conviction of Ghanaian investment banker Asante Kwaku Berko in the United States may result in criminal prosecutions in Ghana. The Office of the Attorney-General has revealed that it is collaborating with its US counterparts on the matter.
The Office of the Special Prosecutor has also stated that it collaborated with the Department of Justice in securing the convictions.
Berko was convicted on three counts, including conspiracy to violate the Foreign Corrupt Practices Act (FCPA), violation of the FCPA, and conspiracy to commit money laundering.
The case involved a US financial institution, Turkish energy companies, Ghanaian consulting firms and officials of Ghana’s Ministry of Power.
At the centre of the case was an effort by a Turkish energy company to secure an Emergency Power Agreement with the Government of Ghana for a power plant.
Asante Kwaku Berko was a senior executive at the US financial institution involved in the transaction. At the time of the alleged scheme, Berko was responsible for working on the transaction between the US financial institution and the Turkish energy company.
The financial institution was the Turkish company’s client adviser and was involved in financing the project. Berko later returned to Ghana, where he served as Managing Director of the Tema Oil Refinery.
The prosecution’s case was that Berko used his position and connections to facilitate payments of bribes to Ghanaian officials in an effort to secure the power agreement for the Turkish energy company.
The US financial institution, Goldman Sachs, was a global investment banking, securities and investment management firm. It was the parent institution for which Berko worked and was involved in financing the Turkish power project.
As part of the proposed transaction, the US financial institution was to provide a US$190 million loan to the Turkish energy company. It was also to provide a US$75 million letter of credit to the Republic of Ghana, a requirement for completion of the deal.
The institution had an approximately 16% shareholding in the Turkish energy company and was expected to earn more than US$11.3 million in fees from the transaction.
The Turkish energy company was the firm seeking to provide the power plant and secure an Emergency Power Agreement with the Government of Ghana. It was a client of the US financial institution.
According to the case presented against Berko, funds from the Turkish energy company were also used in transactions involving the Ghanaian consulting companies. The prosecution’s case was that some of these funds ultimately facilitated payments to Ghanaian officials.
Two Ghanaian consulting companies were allegedly used by the co-conspirators in the movement of funds. One was used to collect money from the Turkish energy company for purposes connected to the payment of bribes, while the other was used to collect reimbursement for bribes allegedly paid by Berko and his co-conspirators and to invoice the Turkish company for related payments.
The case identifies four other individuals as co-conspirators, whose identities are not publicly disclosed. They include a director of one of the Ghanaian consulting companies, two high-ranking officers of the Turkish energy company who are Turkish nationals, and the principal of both Ghanaian consulting companies.
Two Ghanaian officials are identified in the case materials and referred to as Ghana Official 1 and Ghana Official 2. Ghana Official 1 was an adviser to a high-ranking official at the Ministry of Power. Ghana Official 2 was a high-ranking official of the Ministry of Power.
The Senior Ghana Official was a high-ranking official connected to the Ministry of Power and the superior of Ghana Official 1. He was a signatory to the Emergency Power Agreement. The individual is not named in the case materials provided.
The central issue was an attempt to secure an Emergency Power Agreement between the Government of Ghana and the Turkish energy company. The Turkish company needed government approval to establish and operate the power plant.
The US financial institution had a significant commercial interest in the project because of its financing arrangements, equity interest and expected fees.
According to the prosecution, Berko and his co-conspirators devised a scheme to make payments to Ghanaian officials to influence the government’s decision-making. The alleged payments were channelled through intermediaries, including the two Ghanaian consulting companies.
The prosecution said the arrangement involved more than US$1 million in bribes to Ghanaian government officials.
