State Prosecutors’ appeal to sell three properties owned by Daniel Duku, the former CEO of Ventures Capital Trust Fund (VCTF), for GH¢9.9 million has been approved by the High Court in Accra.
The State Prosecution’s request for a change in the property’s valuation price from the earlier ruling by the Court served as the basis for Justice Lydia Osei Marfo’s order. Mr Duku signed settlement agreements with the state to reimburse it for the financial losses he caused, totalling GH¢20.11 million, of which GH¢14 million is still unpaid.
However, Architecture and Engineers Services Limited (AESL), the valuer assigned to evaluate the property, said that the assets he presented to the state to cover the remaining GH¢14 million were overpriced. While AESL’s assessment aligned with the GH¢14 million outstanding, examinations conducted in the same vicinity revealed alternative, excellent facilities with lower values.
State prosecutors filed a move to change the reserved price that the High Court had earlier established since the state was having trouble selling the homes. Counsel for the Respondent, however, objected to the request.
Justice Lydia Osei Marfo heard arguments from both sides and approved the new valuations, granting the prosecution’s motion.
Instead of being sold for GH¢3.6 million, Plot Number 7 near the Islamic University in Adjiringanor, East Legon, would be sold for GH¢3 million.
Instead of being sold for GH¢3.6 million, Plot Number 4 near the Islamic University in Adjiringanor, East Legon, would be sold for GH¢2.9 million.
Instead of GH¢6.7 million, the Georgetown Heights flats in South Suntreso, Kumasi, would be sold for GH¢4 million.
The highest bidder or bidders should purchase all of the properties, according to the court’s directive.
AG’s Argument
Ms. Hilda Craig, with support from Winifred Sarpong, both Principal State Attorneys from the Attorney General’s Department, moved the motion for the reserved price to be varied. Ms Craig explained that the respondent, Daniel Duku, had initially been charged with various offenses including stealing, defrauding by false pretences, money laundering, and causing financial loss to the state. He opted to plead guilty to all charges and chose to make restitution and reparation to the state instead of serving a custodial sentence. The agreement involved Duku paying GH¢15 million to the state and Ventures Capital Trust Fund, and more than $26,000 to Ventures Capital. While the USD 26,000 and GH¢1 million found in his accounts were paid, GH¢14 million remained outstanding.
As part of the restitution and reparation, Duku offered properties to the state. The AESL valued these properties at GH¢14 million, but the state challenged the valuation, arguing that similar properties in the same vicinity were valued much lower. Despite the state’s objections, the Court ordered that the properties be sold at the AESL valuation.
Failed Attempts
The order to sell the properties was given in 2021, but an interpleader delayed the process for more than a year. The state’s auctioneer attempted to sell the properties multiple times without success, as the valuations set by AESL were deemed too high.
In 2023, the state sought a variation of the reserved price, but a preliminary objection raised by the respondent was upheld by the Court, stating it was functus officio (having fulfilled its function). The state argued that the variation of the reserved price was a civil matter, not a criminal one, and the Court had jurisdiction to vary the reserve price.
Respondent’s Opposition
Addo Atuah, Counsel for Daniel Duku, opposed the request, arguing that the properties were offered instead of the outstanding amount due to actions by EOCO, a state body, which had made it difficult to sell the properties. The state had proposed AESL as the valuer and accepted its valuation of over GH¢14 million.
Counsel argued that the state’s application to vary the price was an abuse of the judicial process and that only the Supreme Court could review such criminal matters. He contended that the properties now belonged to the state and that the respondent should not be involved in their sale.
By Court
Justice Lydia Osei Marfo, after considering the submissions, endorsed the prosecution’s request to vary the terms. She noted that the Court was being called upon to facilitate the state in realizing the value of the properties, which had become state property following a judgment.
The Court ruled that it would make an order to vary the sale prices of the properties to ensure they could be sold, as previous attempts to sell them at the initial reserved prices had failed. The new valuations were set to facilitate the sale and prevent further devaluation over time.
The properties to be sold at the revised prices are:
Plot Number 7 near the Islamic University, Adjiringanor, East Legon at GH¢3 million.
Plot Number 4 near the Islamic University, Adjiringanor, East Legon at GH¢2.9 million.
Georgetown Heights apartments, South Suntreso, Kumasi at GH¢4 million.
“All properties should be sold to the highest bidder or bidders” the Court ordered.
