The Member of Parliament for Manhyia South, Nana Agyei Baffour Awuah, allegedly received a suspicious fee of GHS 2.2 million from a third party. This payment occurred after a debt owed to the state-owned SIC Life Savings and Loans Company Limited was drastically reduced from approximately GHS 14.8 million to GHS 5 million. The Economic and Organized Crime Office (EOCO) is actively investigating this transaction, which forms part of a larger inquiry into an alleged GHS 9.85 million financial loss to the state.
The alleged GHS 2.2 million fee was paid by ECO Swiss Investment Limited, a company that was not a client of Mr. Baffour Awuah's law firm. This payment was calculated based on the original GHS 14.8 million debt, not the GHS 5 million ultimately agreed upon in the settlement. The settlement agreement, reached on July 18, 2024, saw SIC Life accept GHS 5 million as full and final payment, to be paid over one year. This arrangement effectively reduced the amount recoverable by SIC Life by GHS 9.85 million, triggering the EOCO investigation.
This case highlights concerns about corporate governance within state-owned enterprises and the handling of public funds. SIC Life did not have a functioning board when the settlement was reached. The company's then-Managing Director, Amma Frimpomaa Dwumah, had resigned in May 2024, with her resignation effective July 31, 2024. This raises questions about the authority under which such a significant financial decision was made, especially given that a managing director's approval limit without board consent was reportedly GHS 150,000.
The Herald reports that Mr. Baffour Awuah's law firm, Sarkodie Baffour Awuah and Partners, was engaged by SIC Life to recover the debt from Equity Savings and Loans. The initial agreement in May 2020 entitled the firm to 15 percent of the GHS 6.3 million debt, approximately GHS 945,000. A judgment in favor of SIC Life was secured in 2022, with the debt then standing at GHS 10.7 million, including interest. A 31.93-acre land parcel at Oyibi, valued at GHS 25 million, was identified as a potential asset for recovery.
However, the recovery process changed when ECO Swiss Investment Limited emerged, claiming ownership of the Oyibi property. ECO Swiss filed an interpleader application on July 17, 2024, stating it had purchased the property for GHS 21.5 million. Just one day later, SIC Life, represented by Mr. Baffour Awuah, and ECO Swiss entered the settlement agreement. This rapid sequence of events and the substantial reduction in the debt, coupled with the GHS 2.2 million fee to the MP's firm, are central to EOCO's scrutiny.
The investigation by EOCO will focus on the legality of the settlement and whether the Managing Director had the proper authority to approve such a large transaction without board oversight. It will also examine the nature of the GHS 2.2 million payment to the MP's law firm, particularly since ECO Swiss was not a client. The outcome of this investigation could have significant implications for accountability in public financial management and the conduct of public officials in Ghana.