The Serious Fraud Office (SFO) on Tuesday accused the Social Security and National Insurance Trust (SSNIT) for losing 1.1 billion cedis through the fraudulent purchase of a house in Accra.

The 2000 Annual Report of the SFO which was laid before Parliament said in August 1998, the Singer House building in Accra was advertised for sale by tender, with all encumbrances, by the Divestiture Implementation Committee (DIC) and the SSNIT put in a bid for 1.5 billion cedis.

The report said SSNIT had earlier on commissioned Ben Dwimoh and Co. (chartered Valuer) to assist the Trust in its bid and the value of the property was put at 1.9 billion cedis.

"Notwithstanding the recommendation from Ben Dwimoh and Co., SSNIT put in a bid for 1.5 billion cedis and indicated it would take the property without any encumbrances. SSNIT lost the bid to Mr Mawuli Ababio who also put in a bid for 1.5 billion cedis with all encumbrances".

The report said SSNIT went ahead and began negotiation with Mawuli Ababio to purchase the property from him for 2.6 billion cedis even though SSNIT was aware that the building had the encumbrances it had earlier rejected.

It said Mr Mawuli Ababio then requested SSNIT to make a down payment of 1.6 billion cedis to which SSNIT complied. "However, the payment to the DIC for the property was effected by the wife of Mr Augustine Kwame Addo, a member of the Board of Directors of SSNIT.

"It is again on record that when Mr Mawuli Ababio later sold the property to SSNIT for 2.6 billion cedis, the part payment of 1.6 billion cedis by SSNIT to Mawuli Ababio was paid into the same account that belongs to the wife of Kwame Addo".

The report said this act was contrary to SSNIT law 1991 PNDCL.247 that stipulates that a Board Member must declare his interest in any contract, which the Trust proposes to make.

It said, "Kwame Addo failed to disclose his interest. This makes the purchase of the Singer House by SSNIT from Mawuli Ababio very irregular and a loss of 1.1 billion cedis to SSNIT."

The SFO in a similar vain has recommended that "the background of all strategic investors in the country especially those involved in the purchase of divested State Owned Enterprises have to be investigated to establish the real people behind the purchase of some of the companies to forestall a situation where abuses and conflict of interest on the part of the officials charged with the divesture process lead to incalculable losses to the state."

It cited the issue, which the SFO had to stall the intended sale of the National Investment Bank (NIB). It said it was significant to note that Messrs Faith Brothers, which wanted to buy the NIB, was incorporated on March 23, 1999 under the Ghana Companies Code adding, "within a matter of one week after its incorporation Faith Brothers was able to form companies in the United States and successfully negotiated with the DIC to purchase NIB".