The conviction of Ghanaian investment banker Asante Kwaku Berko in the United States could lead to criminal prosecutions in Ghana, after the office of the Attorney General confirmed it is working with US authorities on the case.
The office of the Special Prosecutor has also said it worked with the US Department of Justice in securing the convictions.
Berko was found guilty on three counts: conspiracy to violate the Foreign Corrupt Practices Act (FCPA), violation of the FCPA, and conspiracy to commit money laundering.
The case centred on an alleged bribery scheme involving a US financial institution, Turkish energy companies, Ghanaian consulting firms and officials of Ghana’s Ministry of Power. Prosecutors said the arrangement was designed to help a Turkish energy company secure an Emergency Power Agreement with the Government of Ghana for a power plant.
Berko was a senior executive at Goldman Sachs, the US financial institution involved in the proposed transaction. He was responsible for work on the deal between Goldman Sachs and the Turkish Energy Company, which was seeking approval for the project.
Goldman Sachs acted as the Turkish company’s client adviser and was involved in arranging finance for the power plant. Berko later returned to Ghana, where he became Managing Director of Tema Oil Refinery.
The prosecution alleged that Berko used his position and connections to help arrange bribe payments to Ghanaian officials in an attempt to secure the power agreement.
The financial arrangements
Goldman Sachs is a global investment banking, securities and investment management firm. It was the parent institution for which Berko worked and had a direct commercial interest in the Turkish power project.
Under the proposed transaction, Goldman Sachs was expected to provide the Turkish Energy Company with a US$190 million loan. It was also due to issue a US$75 million letter of credit to the Republic of Ghana, which was required for the deal to be completed.
Goldman Sachs held an approximately 16% shareholding in the Turkish Energy Company and was expected to receive more than US$11.3 million in fees from the transaction.
The Turkish Holding Company was the parent company of the entity responsible for the power plant. It formed part of the corporate structure behind the Turkish Energy Company and was linked to the wider investment in the Ghanaian project.
The Turkish Energy Company was seeking to build and operate the plant and obtain an Emergency Power Agreement with the Government of Ghana. It was a client of Goldman Sachs.
According to the prosecution’s case, money from the Turkish Energy Company was used in transactions involving two Ghanaian consulting businesses. Prosecutors said some of those funds were ultimately used to facilitate payments to Ghanaian officials.
Ghana Consulting Company 1 was allegedly used by the co-conspirators to receive money from the Turkish Energy Company for purposes connected with bribe payments. A director of the company was identified in the case materials as Co-Conspirator 1.
Ghana Consulting Company 2 was also allegedly involved. Prosecutors said it was used to obtain reimbursement from the Turkish Energy Company for bribes allegedly paid by Berko and his co-conspirators to Ghanaian officials.
The company was also used to invoice the Turkish Energy Company for payments owed to Ghana Consulting Company 1. Its principal was identified as Co-Conspirator 4.
The people identified in the case
The case materials refer to four other individuals as co-conspirators, but do not publicly disclose their identities.
Co-Conspirator 1 was a director of Ghana Consulting Company 1 and was involved with the business allegedly used to receive funds from the Turkish Energy Company for purposes connected with bribe payments.
Co-Conspirator 2 was a high-ranking officer of the Turkish Energy Company and a Turkish national. Co-Conspirator 3 was also a Turkish national and a senior officer of the same company.
Co-Conspirator 4 was the principal of both Ghana Consulting Company 1 and Ghana Consulting Company 2.
Two Ghanaian officials are also named in the case materials, although neither is identified publicly. They are referred to as Ghana Official 1 and Ghana Official 2.
Ghana Official 1 was an adviser to a high-ranking official at the Ministry of Power, described in the documents as the Senior Ghana Official. Prosecutors alleged that Ghana Official 1 became a target of payments linked to the effort to obtain the power agreement.
Ghana Official 2 was a high-ranking official at the Ministry of Power. The official’s position was considered significant because the ministry was directly involved in the government’s consideration of the power project.
The Senior Ghana Official, who was Ghana Official 1’s superior, was also not named. Prosecutors alleged that the individual was among the officials whose influence was important to the project’s approval. The Senior Ghana Official was a signatory to the Emergency Power Agreement.
Allegations at the centre of the prosecution
The Turkish energy company needed government approval to establish and operate the power plant. Goldman Sachs had a substantial financial interest in the project through its proposed loan, its shareholding in the Turkish Energy Company and the fees it expected to earn.
The prosecution alleged that Berko and his co-conspirators created a scheme to influence government decisions by making payments to Ghanaian officials.
Those payments were allegedly channelled through intermediaries, including Ghana Consulting Company 1 and Ghana Consulting Company 2. Prosecutors said the arrangement involved more than US$1 million in bribes to Ghanaian government officials.
The Attorney General’s office has now indicated that the US conviction may have consequences in Ghana, as cooperation between the Ghanaian and US authorities continues.
