NPP Valuation expert values Project assets and concludes-----
-----Makes over ¢26 billion profit instead!
NDC Finance Minister Kwame Peprah, Minister of Agriculture Ibrahim Adam and Investment Policy Adviser Dr. George Adja-Sipa Yankey, may have gone to prison for nothing!
According to the valuation report issued by the officially appointed valuer of the NPP Government, not only did the Quality Grain Project not make a loss; even in its uncompleted state and with the 6 years of neglect and consequent depreciation of the assets, the Project has still made a monumental profit for the Government of Ghana.
And incredibly, the valuation excludes the cost of the milling plant, silos, conveyor system and related machinery, considered to be the most expensive part of the Project!
The valuers, Messrs Alpha Property Services, submitted their valuation report on the total assets of the Quality Grain Project at Aveyime to the Chief Director of the Ministry of Food and Agriculture in a letter dated November 1, 2006 and signed by the Principal Valuer/Project Consortium Leader Yvonne Sowah (Ms) B. Sc. (Hons), FGhIS, SCV, RPM...
This was in response to a request made by the Ministry of Food and Agriculture per its letter referenced No. MOFA/ETC/4: “Consultants’ services for the Valuation of the Land of the Aveyime Rice Project in the Volta Region of Ghana for the Ministry of Food and Agriculture”.
The value of the assets was estimated as follows:
Rice Mill Complex OMV (¢ ) FSV (¢)
Land and Buildings 10, 022, 600,000.00 7, 015, 820, 000.00
Farm Site
Land and Buildings allocated to Quality Grain Company 41, 396, 600,000.00 28, 977, 620, 000.00
OMV (¢ ) FSV (¢)
Land Preparation Equipment
Machinery 87, 998, 892, 000.00 52, 799, 335, 200.00
*OMV = Open Market Value
FSV = Forced Sale Value
Thus in all, the current Open Market Value of the Quality Grain assets is ¢139,618,093,033 (One Hundred and Thirty-Nine Billion, Six Hundred and Eighteen Million, Ninety three Thousand, Three Hundred and Three cedis). Using the current dollars exchange rate of ¢9,400 to the dollar, this amounts to US$14,852,988.00.
On the other hand, the Forced Sale Value is ¢123,992,332,000 (One Hundred and Twenty Three Billion, Nine Hundred and Ninety-Two Million, Three Hundred and Thirty Two Thousand Cedis).
This converts at today’s dollar exchange rate to us$13,190,674.00.
According to the late Justice Dixon Kwame Afreh in his infamous judgement in the Quality Grain Case, the financial loss caused to the State by the 3 convicted persons amounted to US$12 million, being the difference between the US Exim Bank loan of US$22 on whose Guarantee the Ghana Government was obliged to pay, and US$10 million being the value of assets that Mrs. Cotton brought into the country for the Project.
The valuation by the NPP’s own valuers proves one of the major defences put up by the accused persons in the Quality Grain Trial – that upon a proper analysis of the Project, there was no financial loss caused to the state. Indeed, at the open market value, the state makes a profit of ¢26,818,093,003, and if forced to sell (which means the lowest possible price that the state should get for the assets), the state still makes a project of ¢11,192,332,000.00.
So why did Ibrahim Adam, Kwame Peprah and George Adja-Sipah Yankey go to jail?
We begin a serialisation of the Alpha Property Services Valuation Report from this issue.
Now read on ---
FINAL REPORT: VALUATION OF THE LANDED PROPERTIES AND LAND PREPARATION EQUIPMENT OF THE AVEYIME RICE PROJECT, AVEYIME – SECTION ONE (1): INTRODUCTION AND BACKGROUND (PART 1 OF MANY)
BackgroundThe Government of the Republic of Ghana acting through its Ministry of Food and Agriculture (the Client) is overseeing a Rice Project facility at Aveyime in the North Tongu District of the Volta Region.
The Rice Project facility, situated in the Aveyime Area in the Accra Plains, lies approximately 108 kilometres from the capital Accra and has, for half a decade, seen little or no activity.
With the aim of revamping and reactivating the project to a profitable use, the Client has applied part of its budgetary allocation towards security consultancy services for the valuation of the project.
To this end Messrs Alpha Property Services (the Consultant), a Real Estate Valuation and Property Management firm located in Asylum Down, Accra, was appointed by the Client to provide and make available a comprehensive valuation of the Project.
Consequently, field surveys, inspections and referencing have been conducted on the project premises, with values assessed and incorporated in this report on the nature, status, condition and the degree of utilisation of the land and plant and machinery (including land preparation equipment but excluding the milling plant, silos, conveyor system and related machinery).
This valuation has been made in accordance with the Ghana Institution of Surveyors (GhIS) Guidance notes on the Valuation of Assets.
Description of the Subject Facility (Property)
The subject facility comprises a rice mill complex and farm site originally acquired for Agriculture Development Company. Part of the latter was earmarked for rice cultivation by Quality Grain Company Limited. Available at the mill complex are various structures and items of machinery which will be described in detail in the ensuing pages.
Assumptions and Limiting Conditions
The values stated in the report are based on the following assumptions and limitations though considerable effort has been made to authenticate them. These are that:-
The properties have been valued as though free from any liens and encumbrances other than those contained in the Deed of Records. No deleterious or hazardous materials or techniques have been used in construction and that it is impracticable to comment on the state of any wall ties. The properties are not subject to any unusual or especially onerous restrictions, encumbrances, or outgoings and that good title is assumed. The properties and their values are unaffected by any matters which would be revealed by a local search and replies to the usual enquiries or by any statutory notice, and that neither the properties nor their conditions, nor use, nor intended use, are or will be unlawful. Inspection of those parts which have not been inspected would neither reveal material defects nor cause the Consultant to alter the valuation materially. The Consultant by reason of this report is not required to give testimony in Court with reference to the appraised properties unless an arrangement for such contingency has been previously agreed upon. The physical condition of the structures and the soil characteristics were based on visual inspection and information from reputed sources. No liability is assumed for the soundness of the structures since neither engineering nor soil tests were conducted on neither the structures nor the soil. Sketches are accurate only for purposes of approximation. This report is confidential to the Client, MOFA and should be used only for the purpose for which it is intended. The contents may not be disclosed to any person (s) except those who may require it for the purpose of additional/supplementary advice to the client on the subject matter. No part of this report may be reproduced or transmitted in any form or by any means without the express permission in writing from the Consultant. For the purpose of this valuation, we have assumed that the Government of Ghana (GoG) will be able to guarantee at least a fifty (50) year leasehold term in the land. Certification of Values
The Consultant hereby certifies that:
No present or future interest in the subject properties is contemplated. The subject properties have been carefully inspected and described herein and all findings, statements and opinions expressed in this report to the best of its knowledge are correct.
This appraisal report has been made in conformity with the professional standards of the Ghana Institution of Surveyors of which the Consultant is a registered and corporate member.
Based upon the information contained in this report and the Consultant’s general experience as an appraiser, it is our carefully considered opinion that the:
a) Open Market Value (OMV) or Capital Value (CV) and Forced Sale Value (FSV) of the landed properties as described herein as at 1st February 2006 are in the sums provided below:
Landed Properties
Rice Mill Complex OMV (¢) FSV (¢)
Land And Buildings 10,022,600,000.00 7,015,820,000.00
Farm Site
Land and Buildings allocated to Quality Grain Company 41,396,600,000.00 28,977,620,000.00
b) Open Market Value (OMV) or Capital Value (CV) and Forced Sale Value (FSV) of the landed preparation equipment as described herein as at 1st February 2006 are in the sums provided below:
OMV (¢) FSV (¢)
Land Preparation Equipment
Machinery 87,998,892,000.00 52,799,335,200.00
DATED THIS 1ST DAY OF NOVEMBER 2006
CERTIFIED BY …………………….
YVONNE SOWAH (MS)
PRINCIPAL VALUER/PROJECT CONSORTIUM LEADER
B. Sc. (HONS.) FGhIS, SCV, RPM
Source of Request
This valuation report has been requested for by the Ministry of Food and Agriculture (MoFA) per its letter referenced No; MOFA/ETC/4 – Notification of Award of Contract: Consultants Services for the Valuation of the land of the Aveyime Rice Project in the Volta Region of Ghana for the Ministry of Food and Agriculture.
Scope and Extent of Report
Assess the current value of the landed property indicating how same was arrived at; Assess the current value of land preparation equipment (i.e. Tractors, Ploughs, Harrows, Planters etc) indicating how same was arrived at; and Review the current state of the land, degree of utilisation and possible uses of the available land. Presentation of Report
To accomplish the object of this report the submission is presented in three (3) sections in addition to the appendices which deal with the schedule of accommodation, site, location plans and sketch drawings.
Section One (1) provides a background and introduction to the report which is general to the text contained herein.
Section Two (2) covers the valuation section. This section is divided into three (3) parts, A, B and C. Part A, deals with the landed property of the project with assessed values provided and Part B, deals with the land preparation equipment and their assessed values. Part C contains a glossary of definitions and description of the methods adopted in the valuation of land, buildings and land preparation equipment.
Section Three (3) reviews the current state of the land and provides an outline on the possible uses of the available land.
* To Be Continued
