Reduction of Benchmark values: La Bianca paid GHC 1,074,627.15 in compliance with OSP directive -Report

The Office of the Special Prosecutor has indicated that La Bianca Company Limited complied with its March 21, 2022 directive and duly paid an amount of One Million Seventy-Four Thousand cedis Six Hundred and Twenty-Seven cedis Fifteen pesewas (GHC1,074,627.15), representing the short collection or shortfall of revenue arising from the issuance of the unlawful customs advance ruling into its Asset Recovery Account.

According to the full report on the investigation into the alleged commission of corruption and corruption-related offenses involving La Bianca Group of Companies and the Customs Division of the Ghana Revenue Authority, the OSP notes that the decision by the Deputy Commissioner for Customs in charge of operations, Mr. Joseph Adu Kyei to issue a customs advance ruling for La Bianca was procured through influence peddling of the company’s CEO who happens to be a member of the Council of State.

Furthermore, the report indicates that “the conduct of Mr. Adu Kyei and the placid coddling by Colonel (Rtd.) Damoah portends an institutionalized culture of lighthearted unconcern regarding the impropriety of action at the Customs Division of the Ghana Revenue Authority – which indicates a high propensity to engender corruption and corruption-related activities.”

On 16 November 2021, the Office of the Special Prosecutor (hereafter, OSP) received a written complaint from Frank Asare against Labianca Group of Companies and its subsidiaries (hereafter, Labianca) and the Customs Division of the Ghana Revenue Authority (hereafter, Customs Division). 2.2 

The complainant alleged ongoing corrupt, illegal, and questionable dealings between Labianca and the Customs Division resulting in unlawful markdown or reduction of benchmark values of frozen food products imported by Labianca under the guise of customs advance rulings.

Subsequently, the OSP invited and interviewed the various parties that matter in the case and came out with various findings including the fact that  Mr. Adu Kyei’s cited bases for his decision are untenable, and the decision finds its anchor on no other hypothesis but one – that it was borne of influence peddling or trading in influence.

Additionally, it found that Mr. Adu Kyei’s decision to render an advance ruling to La Bianca by reducing the values of their intended imports between a range of 5% - 10% below the benchmark values was wrongful and unsupported by the requirements of the law for the issuance of customs advance ruling.

Moreover, the OSP made the finding that “the World Customs Organization Practical Guidelines for Valuation Control, June 2012 do not in any way or form back Mr. Adu Kyei’s decision.”