In the ongoing trial of Dr Cassiel Ato Forson, the Minority Leader in Parliament, an expert witness has shed light on the nature of a letter signed by Dr Forson requesting letters of credit (LCs) to be established by the Bank of Ghana (BoG) in favour of Big Sea Trading LLC of Dubai.
The witness, Alexander Kofi Mensah Mould, a seasoned Banking and Finance Expert, according to myjoyonline.com testifying in the Accra Economic and Financial Court, stated that the said letter was not an application for an LC.
During cross-examination by the Attorney General, Godfred Dame, Alex Mould explained that while the Ministry of Finance needed to write to the BoG to request LCs to be established, the letter alone did not trigger the creation of an LC.
He clarified that a proper application from the relevant Ministry, Department, or Agency (MDA) was essential to initiate the establishment of an LC.
In a previous hearing, Dr Cassiel Ato Forson had asserted that the letters he signed on behalf of the then Finance Minister, requesting the establishment of letters of credit for Big Sea General Trading LLC of Dubai, were merely the initial step in the process and did not constitute payment.
Drawing from his extensive experience in Trade Finance gained during his tenure at the Union Bank of Switzerland and Standard Chartered Bank in the United States of America, the expert witness elaborated that LCs were not payments in themselves but rather served as a guarantee of payment upon the occurrence of a specific event.
He emphasized that the documents presented by the prosecution did not support the claim that Dr Forson had caused financial loss merely by signing a letter requesting the establishment of an LC in favour of Big Sea.
He further clarified that, according to Ghana's financial management laws, only the finance minister possessed the authority to authorize such requests for LCs, and it was not uncommon for Deputy Ministers to sign letters on behalf of their Ministers.
Dr Cassiel Ato Forson is facing allegations of causing financial loss to the state for supposedly authorizing the establishment of an LC in favour of Big Sea for the supply of 30 ambulances without proper authorization.
The expert witness's testimony challenges the notion that the letter signed by Dr Forson alone could lead to such financial loss.
BAI/OGB
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Cassiel Ato Forson (left) and Godfred Dame
