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Labianca Report: Owner is ‘chief financier’ of Akufo-Addo – Petitioner

The petitioner in the evolving Labianca tax evasion saga, Frank Asare, has alleged that the owner of the implicated company, Eunice Jacqueline Buah Asomah-Hinneh, is a known bankroller of President Nana Addo Dankwa Akufo-Addo.

In a press release dated August 10, Frank Asare commended the Special Prosecutor (SP), Kissi Agyebeng, for the investigations he conducted on the subject matter and the subsequent report released by the Office of the Special Prosecutor, OSP.

He said the SP’s report was roundly intended to strengthen the administration of revenue mobilization at the Customs Division of the Ghana Revenue Authority (GRA).

According to him, the findings of the SP confirm his earlier suspicion that Madam Eunice Jacqueline Buah Asomah-Hinneh, a Council of State member and a member of the Ghana Ports and Harbours Authority Board, leveraged her position for influence peddling in respect of her company, Labianca Company Ltd.

“I wish to commend the Office of the Special Prosecutor(OSP) for the thorough investigation into my complaint, the findings and recommendations of which does not only indicte the company but contain far-reaching directives for strengthening the administration of revenue mobilization at the Customs Division of the Ghana Revenue Authority.

“The report vindicates my position that Ms. Eunice Jacqueline Buah Asomah-Hinneh, a known financier of President Akufo-Addo, a Council of State member and an appointee of the President on GPHA Board has been evading taxes from 2017 with the connivance of top Custom officials due to her influence in the Akufo-Addo/Bawumia government,” part of the statement.

Frank Asare added that notwithstanding commendations of the Special Prosecutor, he disagreed with portions of the findings.

He said Madam Eunice Jacqueline Buah Asomah-Hinneh should have been made to refund more money in taxes considering the duration of tax evasion. The SP’s report confirmed over GH₵1 million had been retrieved for the state.

He also believes that enough grounds have been established to warrant the prosecution of Madam Eunice Jacqueline Buah Asomah-Hinneh and other named persons in the saga.

“It is my considered view that the refunds ordered are grossly understated. Given the length of time (2017-2022) that these underhand dealings has gone on between the company and the Customs Division of GRA, there’s strong evidence to suggest that the state has lost far more in revenue than the company has been made to refund.

“Also, even though a prima facie case has been made against the Chief Executive of the company in respect of her peddling her influence as a Board member of GPHA and a member of the Council of State to rob the State of millions in taxes, the Report in point 4.32 reckons that “the circumstances of the case, as yet, does not warrants an application to the Court for lifting the veil of incorporation of these companies.” With due deference to the OSP, the Petitioner strongly disagrees with this conclusion and believes that a case has been made for piercing the veil of the companies involved and going after their beneficial owner.

“While it is commendable that the Report directs a full scale investigation into the issuance of customs advance rulings and markdown of benchmark values between July 2017 and December 2021, petitioner believes that such an investigation only goes to uncovering the full extent of the rot and not whether or not there’s a substantive case for criminal prosecution in respect of the adverse findings made on this Petition,” the release further added.

“Indeed the Report correctly asserts in point 4.33 that the only basis for which the Customs Division seems to have issued the Advance Custom Ruling which reduced the benchmark value for import taxes by La Bianca, was that Ms. Eunice Jacqueline Buah Asomah-Hinneh had used her influence as Board member of GPHA and member of the Council of State to procure same.

“A strong case therefore exist for prosecution by the OSP under section 3(1)(a) of the Office of the Special Prosecutor Act, 2017 (Act 959).Tax evasion is criminal under our various Tax Laws and anyone who abets same must face criminal charges under section 20(1) of the Criminal & Other Offences Act (as variously amended), Act 29. In that respect, all officials of the Custom Division who enabled this rot must also be charged and prosecuted.
“In Republic v Philip Assibit & Abuga Pele (Suit No. FTRM 122/14) it was affirmed that by writing letters, recommending and approving payment of over GHc3 million in support of fraudulent claims, the 2nd accused had facilitated the commission of the crime of defrauding by false and was therefore convicted for abetment. The circumstances of this case and the findings of this Report lends itself to a criminal syndicate who have acted to deprive the State of huge sums of revenue in taxes,” the statement emphasized.

Background

The Special Prosecutor in an investigative report dated August 3, 2022, and titled: “Report of Investigation into Alleged Commission of Corruption and Corruption Related Offences involving Labianca Group of Companies and the Customs Division of the Ghana Revenue Authority” indicated that the frozen foods company owner, Eunice Jacqueline Buah Asomah-Hinneh, used her position to evade taxes.

According to the report, Ms. Asomah-Hinneh used her position as a member of the Council of State and member of the GPHA Board to influence a favourable decision from the Customs Divisions of the Ghana Revenue Authority (GRA), leading to a reduction in the tax liabilities of Labianca Company Ltd.

The report further noted that an amount of GH¢1.074 million which represents a deficit in import duties paid to the state has been retrieved.

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