The Special Prosecutor has launched a broader investigation into customs advance rulings and markdowns at the Customs Division of the Ghana Revenue Authority(GRA) after the Labianca Company Limited corruption report.
Mr Kissi Agyebeng said in a statement dated 15 August 2022 that following the investigation report that led to the recovery of over GHC1 million, his office has begun a wider probe into the issuance of advance rulings and markdowns of benchmark values between July 2017 and December 2021.
The statement added that the Special Prosecutor had directed the Commissioner of the Customs Division to submit the particulars of all applications for customs advance ruling to the Office of the Special Prosecutor on or before 30 September 2022.
“On 11 August 2022, I directed the Commissioner of the Customs Division to submit to the Office of the Special Prosecutor on or before 30 September 2022 the particulars on all applications for customs advanced rulings, applications for markdown benchmarks values, applications for private rulings and class rulings pertaining to the applications of customs laws and the decision on each of the applications within the period.”
Mr Agyebeng also wrote to the Commissioner-General of the GRA to submit an Integrity Plan to his office.
“On 11 August 2022, I wrote to the Commissioner-General of the Ghana Revenue Authority to submit an Integrity Plan designed with the aim of preventing the corruption of the exercise of discretion by officials of the Customs Division, especially in respect of the rendering of rulings, to assure the effective operation of the Customs Act, 2015 (Act 891) and the Revenue Administration Act, 2016 (Act 915),” he added.
Labianca corruption scandal
Labianca Company Limited, a company owned by a member of the Council of State, Ms Eunice Jacqueline Asomah-Hinneh, was cited for corruption-related activities in an investigation report published by the Office of the Special Prosecutor on 3 August 2022, dubbed: “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.”
According to the report, the Office of the Special Prosecutor received a written complaint from one Frank Asare in November 2021.
“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.”
“The complainant contended that Labianca has gained an undue competitive market advantage in the frozen foods industry by reason of the alleged corrupt and other unlawful dealings,” the report stated.
After the investigations, the OSP concluded that Ms Asomah-Hinneh has capitalized on her position as a member of the Council of State and member of the Board of Directors of the Ghana Ports and Harbours Authority (GPHA) to get a favourable decision from the Customs Division of the Ghana Revenue Authority (GRA), and so accused her of influence-peddling.
A Deputy Commissioner of Customs in charge of Operations was also cited for issuing an “unlawful customs advance ruling”, which has reduced the company’s tax liabilities to the state.
On this basis, the Special Prosecutor issued an interim directive on 21 March 2022 to Labianca Company Limited to pay 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 by the Deputy Commissioner for Customs in charge of operations, Mr Joseph Adu Kyei into the Asset Recovery Account of the Office of the Special Prosecutor.
Meanwhile, Labianca Company Limited complied with the directive on 31 March 2022.
It will be recalled that the Commissioner General of the Customs Division of the Ghana Revenue Authority (GRA), Col. Kwadwo Damoah (RTD), rubbished the report, calling it hollow and without substance.
He accused the Special Prosecutor of attempting to bring him down with the “malicious” report on the Customs Division while addressing some senior Customs officers at a retreat in Kumasi on Wednesday, August 10.