I have become aware of a series of media reportage indicating that I, Cassiel Ato Forson acting as the Deputy Finance Minister authorized payment of some defective ambulances 'procured' in 2014 by the ministry of health.
I want to put on record that the Ministry of Finance only acted upon an instruction from the Ministry of Health to issue at sight letters of credit on their behalf using MOH 2014 budgetary allocations.
The Ministry of Finance also instructed the Controller and Accountant General's Department to pay for the bank charges accrued to the Bank of Ghana as a result of the issuance of letters of credit on behalf of the Ministry of Health.
It is important to note that letters of credit issued by the Bank of Ghana are only a guarantee for payment and not payment in itself.
It is only when the supplier fulfills their part of the obligation under the contract that payment will be made.
In modern business practice, a letter of credit (LC) also known as a Documentary Credit, is a written commitment by a bank issued after a request by an importer (foreign buyer) that payment will be made to the beneficiary (exporter) provided that the terms and conditions stated in the LC been met, as evidenced by the presentation of specified documents.
At Sight — A credit that the announcer bank immediately pays after inspecting the carriage documents from the seller.
Finally, I, Cassiel Ato Forson acting as Deputy Minister of Finance then NEVER made PAYMENT to BIG SEAS for the supply of ambulances.
Credit : Ato Forson