A United States court has convicted Asante Kwaku Berko, former Managing Director of Tema Oil Refinery (TOR), for his involvement in a bribery scheme. This scheme concerned payments exceeding US$1 million to Ghanaian officials. These payments aimed to secure approvals for an AKSA power project in Ghana.
This conviction reopens a troubling chapter in Ghana’s power sector. The US investigation focused on the AKSA power project. Prosecutors found that Berko participated in a scheme to bribe Ghanaian officials. This was to facilitate the project's establishment and secure its contractual arrangements. The case highlights a perceived reluctance by Ghanaian authorities to scrutinize the broader transaction and its associated interests.
The US case has brought renewed attention to AKSA's significant expansion in Ghana. The company's footprint in the country's power sector has grown substantially. This growth occurred despite years of corruption allegations surrounding its initial entry. The conviction of an individual linked to the original deal prompts questions about the lack of a comprehensive Ghanaian investigation into the officials and commercial interests involved.
The Africa Centre for Energy Policy (ACEP) has previously raised concerns about the AKSA project. ACEP estimated that the equipment deployed for the original project might have cost substantially less than the capital-recovery payments. These payments were built into the power purchase agreement. The plants generated hundreds of millions of dollars in capital-recovery and fixed operation-and-maintenance payments. This occurred within a relatively short period, despite low utilization.
The original AKSA project entered Ghana during a severe electricity supply crisis. It was presented as an emergency solution. However, this emergency arrangement evolved into a long-term commercial obligation. Critics question whether Ghana received value for money, especially given the alleged bribery. The issue is not just the need for electricity but whether the emergency led to a disproportionate transfer of value to a private power producer.
The most striking aspect of the AKSA story is its longevity and expansion after corruption allegations became public. AKSA did not withdraw from Ghana. Instead, its relationship with the state deepened. Ghana subsequently agreed to a new 15-year power purchase arrangement with AKSA for its existing generation capacity. This demonstrates a continued commitment despite the controversy.
AKSA later secured another power project in Kumasi. This agreement was signed during the tenure of then-Energy Minister Matthew Opoku Prempeh. More recently, AKSA has received government support for a much larger 900MW power project in Takoradi. This progression from an emergency project to additional capacity and now a major new development is difficult to ignore.
The question is not whether AKSA should be barred from competing for projects. The issue is whether its subsequent expansion has faced adequate scrutiny. This scrutiny is crucial given the history of the original transaction and the recent US bribery conviction. A thorough investigation is needed to determine if improper payments affected the terms of Ghana's agreements and if Ghana paid a fair price.
Ghana must now confront why the conviction of an individual involved in securing the AKSA deal did not trigger a comprehensive investigation. This investigation should cover Ghanaian officials, intermediaries, and commercial interests. It should also establish whether the conduct affected the terms of the transaction. Furthermore, it needs to determine if Ghana subsequently paid a price that reflected the true economic value of the project. This is essential for transparency and accountability in the nation's energy sector.