22 Facts You Should Know About The BOST $3 Million Scam

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Find out 22 interesting facts you probably didn’t know about the new Bulk Oil Storage and Transportation Co. Ltd (BOST) Managing Director’s three million dollars’ worth ‘Scandal’.

The controversial $3 Million deal revolves around unlawful payment of some $3 million to Springfield Energy. This scandal is believed to be unreasonable in the history of BOST.

The $ 3 million Dollar Scam has been making headlines for weeks and is being described as one of the largest corruption scandals ever witnessed in the global oil industry.

Below are 22 things you should know about the controversial 3-million-dollar deal:

  1. Springfield Energy brought its product to BOST tank farm in 2013 October for storage.
  2. Part of the product got lost and Springfield wanted to take advantage of it and claimed $20,226,717.75 which was far more than the actual quantity lost.
  3. Nonetheless Springfield took BOST to Accra High Court on the 18-11-2015 claiming the following:

(a)  Recovery of $ 20, 226,717.75;

(b) At the Interest rate of 19% from October 2015 till the final payment of the principal;

(c) Loss of profit of $3,420,000.00

  1. BOST under Awuah Darko challenged all the claims brought by Springfield and engaged Ernst and Young Audit Firm to audit the transaction to ascertain the actual quantity of products lost.
  2. Ernst and Young found out that the actual quantity of product lost worth $ 11, 104, 143.29.
  3. Both BOST and Springfield agreed and accepted this finding.
  4. A summary judgement was awarded to Springfield for its claims and that was when Awuah Darko went for external lawyers to fight the case.
  5. BOST filed stay of execution to enable them appeal against the judgement and the High Court granted it partially and affirmed the order for payment of the cost of actual product loss of which both parties agreed to. That is $11,104,143.29
  6. On the 20th December 2016, BOST under Awuah Darko paid the said principal amount of $11,104,143.29 through a Five-Year Term loan from Fidelity Bank.
  7. The remaining unresolved issues notably the 19% interest rate being claimed by Springfield on the principal is still pending at the High Court and Court of Appeal.
  8. Springfield in September 2017 approached BOST to have the matter settled and this was under Alfred Obeng era.
  9. The Head of Legal Department, Mrs Harriet Amoah and the Head of Finance, Mr John Kojo Arkoful negotiated the settlement agreement with Springfield who brought a claim of over $ 14 million being interest on the $11,104,143.29.
  10. This interest was negotiated to $ 9 million and BOST under Alfred Obeng paid $4 million on 27th September 2017.
  11. The Head of Legal Department, Mrs Harriet Amoah then sent the Settlement agreement to the External Lawyers for their perusal and in the email the external lawyers clearly advised against further payment to Springfield because Springfield is not entitled to that much ($9 million). Mrs Harriet Amoah acknowledged receipt of the email and assured Nsiah Akuetteh & Co. that she would be guided by their advice. This advice came in September 2017 immediately after the $4 million payment.
  12. As a result of this advice and subsequent meeting held at BOST Head Office between Mr Alfred Obeng- the then MD, Mrs Harriet Amoah – Head of legal and Mr Loud Nsiah – one of the external lawyers in November 2017; the settlement agreement was not executed – both parties did not sign and therefore no one can refer to any duly executed settlement agreement.
  13. BOST made it clear to Springfield that they cannot claim interest on their products and at the same time loss of profit on the same product. The two are the same to some extent.
  14. BOST used the 12% interest rate that Springfield stood instead of BOST 8% interest rate and used the date when the product was first brought to BOST tank to the date of full payment and realized that Springfield had to refund some money to BOST.
  15. Remember that the injury or loss of product did not occur on the very day that the product was brought and therefore interest could not have been started from that October 2013. Springfield pleadings in court also stated that interest from 2015 till the final payment of the principal.
  16. In the worst-case scenario using 12% and from October 2013 to December 20th, 2016 (final payment of $11,104,143.29), Springfield was entitled to less than $ 4 million but BOST under Alfred Obeng paid $4 million to Springfield Energy.
  17. Alfred Obeng then wrote to Springfield in October 2017 to refund $105,000.00.
  18. Springfield went back to Court to announce that settlement had broken down following which the case was adjourned to 17th November, but Springfield had since failed to attend Court.
  19. Then George Mensah Okley and John Kojo Arkoful in July and August 2018 paid $ 3 million to Springfield Energy.

Take notice, that in Alfred Obeng’s letter, he referred to 8% but in actual fact it was 12%. This is because the figure there rather corresponds to 12%. If it was 8%, the Interest due Springfield would have been much lower than the $3.8 million.

So, what is the basis of this new $3 million (GHS 14.4 million) payment by George Mensah Okley and John Kojo Arkoful?

 

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