Accra Sky Train Trial: Former GIIF Board Member Testifies $2M Payment Was Never Authorized

Introduction

In a pivotal moment during the Accra Sky Train trial, former Ghana Infrastructure Investment Fund (GIIF) board member Yaw Odame Darkwah delivered explosive testimony in an Accra High Court. He categorically stated that the GIIF board never authorized a $2 million payment linked to the ill-fated Accra Sky Train project, which ultimately failed to materialize. This revelation strikes at the heart of allegations against former GIIF CEO Solomon Asamoah and former Board Chair Prof. Christopher Ameyaw-Ekumfi, who face six counts of willfully causing financial loss to the state.

The testimony, given on November 10, underscores critical issues in public infrastructure funding, board governance, and due diligence processes in Ghana’s investment landscape. As the trial unfolds, it highlights the importance of transparency in managing state funds for ambitious projects like urban rail systems. This article breaks down the GIIF scandal details, providing a pedagogical guide to understanding the case’s implications for infrastructure investment accountability.

Background on the Accra Sky Train Project

The Accra Sky Train was envisioned as a modern elevated rail system to alleviate traffic congestion in Ghana’s capital. Despite initial discussions, the project stalled without progressing beyond preliminary stages, raising questions about disbursed funds.

Analysis

Yaw Odame Darkwah’s court appearance as the first prosecution witness exposed procedural lapses in the GIIF’s handling of the Sky Train project Ghana. He emphasized that while the project was mentioned in board meetings, no formal proposal was ever submitted for review or approval. This absence of documentation meant no due diligence report—essential for evaluating project viability, risks, and returns—was presented.

Darkwah first learned of the $2 million disbursement through the Auditor-General’s report, a standard oversight mechanism in Ghana that audits public financial institutions. He contested the accuracy of board minutes referencing the Sky Train, asserting they do not reflect actual deliberations or decisions. “The minutes called as proof of the meeting do not properly reflect the Board’s deliberations or decisions regarding the Sky Train project at any time,” he told the court.

GIIF’s Investment Mandate and Governance Standards

The GIIF, established under Ghana’s Infrastructure Investment Act, manages sovereign wealth-like funds for critical infrastructure. Its board is tasked with approving investments after rigorous due diligence, including feasibility studies, financial modeling, and risk assessments. Darkwah reiterated his commitment to national interest, noting he “would never have supported any financial disbursement without proper due diligence.”

During his tenure, GIIF approved legitimate projects like Terminal 3 at Kotoka International Airport and the Maaha Beach Resort, demonstrating a track record of sound investments. The Sky Train’s exclusion from this list points to unauthorized actions bypassing board oversight.

Summary

The Accra Sky Train trial centers on claims that former GIIF executives disbursed $2 million without board approval for a project that never advanced. Darkwah’s testimony confirms no formal approval occurred, with cross-examination underway and the case adjourned to November 12. The accused, on bail, have pleaded not guilty to charges of financial loss to the state.

Key Points

Practical Advice

For stakeholders in infrastructure investment funds like GIIF, this case offers actionable lessons on governance. Always require comprehensive due diligence reports before approvals, including:

• Feasibility studies verifying technical and economic viability.
• Risk assessments covering financial, legal, and operational threats.
• Minute-taking protocols ensuring accurate records of deliberations.

Implementing Strong Board Oversight

Boards should mandate proposal submissions in writing, with quorum requirements for discussions. Use digital tools for minute verification and audit trails. In Ghana’s context, align with Public Financial Management Act guidelines to prevent GIIF financial loss incidents.

Professionals can adopt templates for investment evaluations, drawing from international standards like those from the World Bank or IMF for sovereign funds.

Points of Caution

Potential pitfalls in public-private infrastructure deals include:

• Verbal Approvals: Avoid them; they lack traceability and invite disputes.
• Incomplete Minutes: Ensure scribes capture decisions verbatim.
• Audit Ignorance: Auditor-General reports are public; proactive compliance averts scandals.
• Project Abandonment: For stalled initiatives like Sky Train, demand clawback clauses in agreements.

Risks of Bypassing Processes

Unauthorized disbursements erode public trust and expose executives to criminal liability under Ghana’s laws, as seen in this trial.

Comparison

Compare the GIIF scandal to similar cases:

The GIIF case mirrors global infrastructure fraud patterns, where weak oversight leads to financial losses. Unlike STX, Darkwah’s testimony provides direct evidence against approval claims.

Legal Implications

The accused face charges under Ghana’s Criminal Offences Act, 1960 (Act 29), Section 179A for willful financial loss to public property—punishable by up to 15 years imprisonment. Prosecution must prove intent beyond reasonable doubt, bolstered by Darkwah’s claims of no board approval.

Broader Ramifications

A conviction could trigger asset recovery via the Economic and Organised Crime Office (EOCO) and reforms in GIIF statutes. Witnesses like Darkwah risk cross-examination challenges but strengthen cases via verifiable records. The trial emphasizes fiduciary duties under the Companies Act, 2019 (Act 992).

Conclusion

The Accra Sky Train trial testimony by Yaw Odame Darkwah illuminates governance failures in Ghana’s infrastructure sector. By affirming no authorization for the $2 million payment, it reinforces the need for rigorous due diligence and transparent decision-making. As the case proceeds to November 12, it serves as a cautionary tale for public funds management, potentially reshaping accountability in entities like GIIF. Stakeholders must prioritize processes to safeguard national resources and prevent future Ghana Infrastructure Investment Fund scandals.

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