The General Manager in charge of Investment and Development at the Social Security and National Investment Trust (SSNIT), Mr. Michael Addotey Addo, yesterday told the Commission probing the Ghana@50 Secretariat, that SSNIT released their lands in Ridge to the African Union Development Consortium Limited (AUDCL) to put up 30 presidential mansions without placing any value on it.

He explained that due to the delay by the Lands Valuation Board (LVB) in making available the value of the lands, SSNIT did not have any option than to release the lands to the AUDCL, a limited liability company, since the consortium was working within a one-year time frame.

He said the two years delay by the LVB to present its report, contributed to the increment of the $4.5 million value the AUCL placed on the lands to GH¢11.2 million.

Narrating how SSNIT came into the picture, he said the AUDCL, on April 16, 2007, applied for GH¢10 million for the construction of 30 presidential houses at Cantonments.

He continued that on April 30, 2007 the SSNIT Board approved the facility, adding that there was some documentation, which included the loan agreement, shareholder's guarantee, and the deeds of the agreement.

He noted that another set of buildings at ridge, which were also executed by the consortium, were used as security for the loan.

"The proceeds of the payments of the houses owned by AUDCL at Ridge, plus any other source, will be used to pay the loan, the proceeds will be paid into an escrow account," he stressed.

He indicated that in June 2006, SSNIT requested from the LVB the value of the lands, but because the valuation was not forthcoming, the Secretariat demanded to commence development on the lands, and that this was acceded to by the Board of SSNIT in a letter dated July 20, 2006.

He said that two representatives of SSNIT collaborated with a representative of the AUDCL to form a joint task force to deal with the sale of the properties, however the task force has not been able to sell the buildings, because of lack of information from the Lands Valuation Board (LVB).

Mr. Addo indicated that the task force received the report from the LVB on July 22, this year, which put the value of the lands at about GH¢11 million. He stressed that currently, the AUDCL had made a total payment of GH¢2 million to defray part of the debt, adding that the current indebtedness stood at about GH¢12 million.

When pointed out to him by the Commission that SSNIT could have dealt with the total construction of the houses, instead of granting the loan to the consortium, which was a limited liability company, the General Manager responded that the request letter which came from the AUDCL, did not give them that option, and that the attachment of the application letter, had as part of its attachment, referrals to the Office of the President, which meant that the government was involved in the deal.

He said loans are given to companies, including limited liability companies, subject to the Board's approval.

Mr. Addo stated that as at June 30 this year, the AUDCL was indebted to SSNIT to the tune of about GH¢12 million, with the inclusion of interest. Touching on the second dealings with the Ghana@50 Secretariat, he said in May 2006, the Office of the President approached SSNIT to purchase their lands at Ridge, adding that the Office of the President directed the Secretariat to liaise with SSNIT and the Lands Commission to complete the formal release of the land.

Meanwhile, the Chairman of the Commission probing the Ghana@50 Secretariat, Justice Isaac Duose, yesterday lambasted the Central Regional Coordinating Director, Mr. Kwame Oppong, for diverting a surplus of GH¢400,000 earmarked for the Jubilee Park in Cape Coast, into other projects. Justice Duose pointed it out to the Director in plain words that by diverting part of GH¢20,000 allocation into other projects, he had flouted the Financial Administration Law, since there was no instruction from the Secretariat which permitted them to expend the surplus.

"It was wrong. At your rank when there is surplus in government money, do you return it or you spend it?" he asked.

Justice Duose disagreed with Mr. Oppong on his argument that by disbursing the amount on other projects, it meant that he had retired the surplus.

Mr. Oppong said the Regional Coordinating Council (RCC) was given GH¢700,000 by the Ghana@50 Secretariat, and that the sum was to be spent on the construction of a Jubilee Park (GH¢400,000), GH¢150, 000 was to be used for the celebration of the 50th Anniversary in the region, while another GH¢150, 000 was supposed to be spent on projects selected by the RCC.

He continued that the RCC selected fixing of streetlights and electronic billboards.

Mr. Oppong noted that they were able to make GH¢20,000 savings out of the GH¢400,000 earmarked for the Jubilee Park project, but the surplus was added to the regional and district celebrations.

He said the Council was given souvenirs, including drinking cups, T-shirts and baseball caps, adding that the cups were distributed to school children free of charge, and the clothes sold.

He maintained that about GH¢3,000 was made out of some of the T-shirts that were sold.