Richard Kwame Peprah, former Finance Minister, on Tuesday said he gave "administrative approval" for the government to guarantee 12 million dollars as loan to the Quality Grain Company to establish a rice project at Aveyime in the Volta Region.

The need to save the country from spending much of her foreign reserves to import rice informed the decision of the Ministry and the Ministry of Food and Agriculture (MOFA) to submit the project for Cabinet approval.

Mr Peprah was opening his defence in a case in which he and four others are charged with conspiracy and wilfully causing financial loss to the state. He said initially, the company was granted seven million dollars for the purchase of light-duty equipment including silos, mills and irrigation machines.

Led by his counsel, Mr Kwaku Baah, he said the project was discussed and approved by the Cabinet before Parliament gave its nod. He said it was Ibrahim Adam, the first accused person and former Agriculture Minister, who introduced the Managing Director of the company, Mrs Juliet Woodard Cotton to him as an investor, who wanted to undertake the project.

Mr Peprah said Mrs Cotton told him that the Exim Bank in Atlanta in the United States (US) had agreed to grant the loan provided she could get sovereign guarantee. She produced a feasibility report on the project, which indicated that it would be a viable venture, he added.

The accused said he showed interest in the project because it could help the country in her food security that was why when it was approved he made sure that it took off.

He said documents covering deed of indemnity and floating charges and promissory notes covering the 12-million dollar loan were prepared. The other accused persons are Dr Samuel Dapaah, Dr George Yankey and Nana Ato Dadzie, all former senior public officials.

They have pleaded not guilty and each of them is on a self-recognisance bail. Peprah continues his evidence on Wednesday, January 23.