Labianca denies OSP’s corruption, Influence peddling report

Labianca Group of Company, a substantial market share holder in Ghana’s frozen foods importation and distribution sector has denied report by the Special Prosecutor’s Office that they acquired customs advance ruling from the Customs Division of the Ghana Revenue Authority through influence peddling.

The have also denied engaging in corruption in its activities with customs.

“Although the Office of the Special Prosecutor has not written formally to the company on its findings as required by due process and fair ‘trial’ rules, we believe that the report findings are at variance with our recollection of events and submissions made to the office,”

“We deny that the company and its Chief Executive Officer, Mrs. Asomah-Hinneh, procured customs advance ruling through ‘influence peddling or trading of influence’.

A statement from the company sighted by GhanaPlus.com said the company has over the years followed due processes in acquiring the advance ruling and also complied with all its tax obligations dutifully hence what happened due to undervaluation cannot be said to be corruption.

Labianca added that company takes an exception to the report and has therefore instructed it lawyers to take action on the matter.

 “Over the years, the company has, in accordance with due process, applied for customs advance rulings under the Customs Act 2015 (Act 891). Indeed, over the years, the company has been tax compliant and has discharged all its obligations dutifully. Due to the nature of the operations of importers like us, the Ghana Revenue Authority, per Act 891, conducts periodic post clearance audits to determine possible undervaluation or overpayments of taxes,” the statement added.

“Consequently, the assumption of jurisdiction by the Office of the Special Prosecutor on such post clearance audit and our settlement of such taxes arising from such an audit is not synonymous with corruption and or corruption-related activities by the company. The several communications between the Office of the Special Prosecutor and the company confirm this.

“We take the findings of the Office of the Special Prosecutor seriously and have consequently instructed our lawyers to take the necessary action on this matter.

Labianca corruption scandal

Labianca was implicated in an Alleged Commission of Corruption and Corruption-Related Offences Involving Labianca Group of Companies and the Customs Division of the Ghana Revenue Authority published by the Special Prosecutor’s office on August 3.

According to the report, the company owned by a Member of the Council of State, Ms. Asomah-Hinneh who is also member of the Board of Directors of Ghana Ports and Harbours Authority was awarded a whopping 5-10% in a benchmark value issued by Mr Adu Kyei on the said products imported by the company under the guise of customs advance rulings without cause to due processes .

The transaction approved by the Commissioner of the Customs Division of the Ghana Revenue Authority (GRA), Col. Kwadwo Damoah, (RTD) resulted in a revenue short fall of  One Million Seventy-Four Thousand cedis Six Hundred and Twenty-Seven cedis Fifteen pesewas (GHC1,074,627.15) to the state which has since been retrieved by the Office of the Special Prosecutor.

“It would appear that the coincidence of the indicated applications and the public office appointments of Ms. Asomah-Hinneh was not altogether accidental.There is strong evidence to suggest that the events are a product of influence peddling,” the statement said.

Source: GhanaPlus.com