... fraudster in Ghana to invest?
... Austrian businessman lose $90,000
Prague, Jan 9, GHP -- An investement gone wrong in Ghana has become an issue in Czech Republic upcoming June general election

The deputy group chairman of the ruling Social Democrat Party (CSSD), Michal Kraus (pictured) went in 2001 with ?businessman" Frantisek Rigo to Ghana where they wanted to buy (or attempted to invest in) a plant processing cocoa beans for 15 million dollars.

The deal eventually failed and the third member of the group, Austrian businessman Alfred Augustin was allegedly swindled of 90,000 dollars in the project.

The police are now investigating what role Kraus, played in the deal. Kraus went to Ghana with Rigo who has now been serving a 10-year prison sentence for frauds. They left for Ghana on September 21 while most media carried news on September 4 already about Rigo being investigated.

Rigo now asserts that Kraus was his partner and that Kraus promised to bring 15 million dollars into the business.

Kraus dissociates himself from Rigo's allegation.

"I was invited to Ghana to see for myself that the situation after the elections is favourable for the resumption of business relations with the Czech Republic," Kraus told police.

Besides Rigo and Kraus also Austrian businessman Alfred Augustin went to Ghana. He has lost in the failed investment 90,000 dollars which he lent to Rigo. It was him who alerted the police to the case last Marhc.

Rigo claims that the investment failed because Kraus did not provide the promised money. "He was postponing it. I eventually learnt from him that the money was to come from bribes from a large state order that was being continuously postponed," Rigo siad.

Kraus dismisses this and says that the project, including its funding, was solely Rigo's thing. "It was Rigo's deal," Kraus said yesterday. At the same time, however, he confirmed that he signed the investment contract in Ghana.

"It was only as a witness. I did not participate in the deal," Kraus said. According to the newspaper, Mlada fronta Dnes, before he went with Kraus to Ghana, Rigo, 37, had a record of several scandals and frauds.

Kraus says he did nothing wrong in connection with Ghana visit

PRAGUE- Head of the senior governing Social Democrats (CSSD) deputies' group Michal Kraus told journalists that he had committed nothing wrong when he visited Ghana four years ago and he therefore saw no reason for giving up the post of the CSSD deputies' head.

He said that the only mistake he made was that he "had allowed himself to be cheated by a fraud," adding that Frantisek Rigo was this fraud.

Kraus visited Ghana four years ago with controversial businessman Rigo and Austrian businessman Alfred Augustin and attended there talks on investments in the local cocoa beans processing plant.

Finally, the transaction was not materialised, Mlada fronta dnes said on Monday. It said that the police were investigating the role that Kraus played in the attempt to invest 15 million dollars into the Ghanaian plant.

Rigo told the paper that Kraus was his partner who was to invest the above 15 million dollars into the venture.

Kraus allegedly told him that this was to be money from bribes from a large state order that, however, was continuously postponed.

However, Kraus dismissed Rigo's accusations.

"I was invited to Ghana to see myself that the situation after the elections is favourable for the resumption of business relations with the Czech Republic," Kraus told police according to Monday's issue of MfD.

Kraus also dismissed the assertion that the 15 million dollars came from a bribe.

He said that the project, including its funding, was only Rigo's matter.

However, Kraus confirmed in MfD on Monday that he signed an investment contract in Ghana. "I only signed it as a witness. I did not participate in the deal," Kraus said.

Kraus said today that Rigo then appeared to be a trustworthy person to him and that he travelled to Ghana as a tourist in the first place.

However, he admitted that he met with the Ghanaian finance minister (Osafo-Maafo) and attended several commercial talks thanks to Rogo's acquaintances.

Mlada fronta Dnes wrote in today's issue that Ghanaian officials thought Kraus to be director of the ProAfri company, and not a tourist.

ProAfri allegedly wanted to buy shares of the local cocoa beans processing plant, the paper said.

In an interview for today's issue of daily Pravo Kraus said that shortly after they returned from Ghana, he offered to Rigo the savings bank account of his mother via which he was to transfer 50,000 dollars in Czech crowns.

Kraus said Rigo was to pay within a few hours a deposit under the contract that he signed in Ghana and that his own account was frozen by mistake.

Mlada fronta Dnes says today that it arises from the contract, copies of which it has at its disposal, that Kraus signed the contract as the director of the company that wanted to buy the plant.

According to MfD, the contracts bear the signatures of four people. On the Ghana side it is A.Q.Barnor, director of the privatisation agency, and his assistant Odoio.

On the Czech side the contract was signed for ProAfri by Rigo and Kraus.

MfD writes that Barnor and Rigo are mentioned as the main protagonists of the deal, the signatures of Odoio and Kraus are in the witnesses column.

However, the post of director is clearly stated together with Rigo and Kraus's names, MfD writes.

Kraus said today that he had no relation to the company and explained the word "director" by the euphoria that broke out after the signing. He said he would be glad if the author of the article in Mlada fronta Dnes publish the whole text of the contract because it would then be clear that it was not any dubious deal.

"I think that I have committed nothing deplorable," he said.

Asked by journalists whether he liked cocoa he said that Ghanaian cocoa was one of the best.

Kraus, who is the CSSD election leader in the Liberec region, north Moravia, said that it was for the last time today that he commented on the case.

However, it is possible that some of his party colleagues will ask him certain questions.

($1=23.916 crowns)