Former Tema Oil Refinery (TOR) Managing Director Asante Kwaku Berko has been convicted by a federal jury in the United States over his role in an alleged bribery and money-laundering scheme involving a power project in Ghana.
Berko, a dual citizen of Ghana and the United States and former Executive Director in Goldman Sachs’ Investment Banking Division, was found guilty by a federal jury in Brooklyn following a nine-day trial before US District Judge Diane Gujarati.
US prosecutors accused Berko of using more than US$1 million in bribes to influence Ghanaian government officials and help secure a lucrative power project for Aksa Enerji Uretim A.S., a Turkish energy company and Goldman Sachs client.
He faces up to 30 years in prison when sentenced and has been remanded pending sentencing.
$1m allegedly earmarked for Power Minister
According to evidence presented during the trial, Berko became involved in the project in December 2014, when Ghana was experiencing a severe power crisis.
Prosecutors said Berko and his associates discussed a US$1 million payment in April 2015 to the Ghanaian Minister of Power responsible for key government approvals for the project.
An additional US$250,000 was allegedly designated for the Minister’s senior adviser.
The alleged bribery scheme also extended to Parliament after the Aksa-Ghana power agreement was ratified in July 2015.
US prosecutors said Berko and his co-conspirators subsequently discussed additional payments to individuals who had played roles in securing approval for the project.
In August 2015, they allegedly discussed US$250,000 in further bribes, including US$46,000 intended for Members of Parliament who had participated in the ratification of the agreement.
According to the prosecution, Berko personally made the US$46,000 payment.
The conspirators allegedly used coded language to conceal the nature of the payments. In one communication, a recipient was reportedly described as waiting for the “holy rain” and wanting it sooner rather than later.
Ghanaian officials allegedly taken to Turkey
The prosecution also presented evidence that Berko and his associates arranged an all-expenses-paid trip to Turkey for five Ghanaian officials.
The officials were taken to inspect equipment associated with the proposed power plant.
Prosecutors said the trip formed part of efforts to cultivate support among Ghanaian officials who had influence over the approval and implementation of the project.
According to the US Department of Justice, the power plant was projected to generate hundreds of millions of dollars in profits.
Alleged attempts to conceal payments
Prosecutors said Berko deliberately concealed the alleged payments from Goldman Sachs and the bank’s compliance team, which was responsible for reviewing the transaction.
He allegedly misled compliance personnel about aspects of the deal and used a personal email account rather than his Goldman Sachs account to communicate with co-conspirators about the project and alleged bribes.
He also allegedly instructed others involved in the scheme to use similar methods.
The prosecution said the payments were disguised and transferred through shell companies, sham invoices, nominee account holders and cash withdrawals, with transactions passing through US and foreign bank accounts.
Goldman Sachs eventually withdrew from the transaction after corruption concerns emerged.
US authorities condemn conviction
US Attorney for the Eastern District of New York, Joseph Nocella Jr., said the conviction demonstrated the commitment of US authorities to combating international corruption.
“Today’s verdict marks another significant victory in this Office’s longstanding commitment to rooting out corruption,” he said.
According to Mr Nocella, Berko abused his access to senior foreign government officials and his position at Goldman Sachs to enrich himself through the alleged scheme.
Assistant Attorney General of the US Department of Justice’s Criminal Division, A. Tysen Duva, said the conduct undermined fair competition in the global economy.
He said Berko abused his position at Goldman Sachs by helping to bribe Ghanaian officials so that he and his co-conspirators, including senior executives of the Turkish company, could profit from the project.
FBI Assistant Director in Charge James C. Barnacle Jr. also credited international cooperation for helping bring the case to court.
He said the investigation demonstrated the importance of cooperation between US authorities and their international partners in pursuing financial crimes involving multiple jurisdictions.
The US authorities said the United Kingdom, including its National Centre Bureau for INTERPOL, the US Embassy in London, the US Department of Justice’s Office of International Affairs and the US Marshals Service, provided assistance in securing Berko’s arrest and extradition.
Berko is expected to be sentenced at a later date and remains in custody pending that hearing.
