Ghana lobby group raises red flag over 'bogus' Chinese firm

A Ghanaian lobby group is raising a furore over a multi-billion dollar infrastructural project being developed by a Chinese firm alleged to be dubious.

Imani Ghana, the lobby group, is questioning the particulars of China Hasan, the Chinese-based company that has reportedly been contracted by the Ghana government to develop a free-zone enclave in the western region of the country.

Imani Ghana says its investigations have led it to doubt whether a $3 billion Chinese-backed loan for the project is available as the government claims, a position opposition party leaders agree with.

The skeptics are pointing to an earlier development plan called the STX Housing project that was to be developed jointly with a South Korean consortium but which failed to take off last year even after President John Atta Mills officially inaugurated it.

The STX Project was undone by failure to raise sufficient funds even though the Koreans had promised the necessary financial support. The whole venture died amid court battles and boardroom fights between the Koreans and their Ghanaian partners.

'Deceive government'

The same Imani Ghana had been at the forefront of the campaign against the STX project, questioning its design and source of funding.

In its latest fight with the Ghana government, Imani Ghana says “a detailed analysis of China Hasan activities suggested that the company which is to develop the Sekondi Free-Zone enclave did not have the capacity to raise the finance for the estimated $4 billion project,” adding the rider that it could be a scheme to “intentionally deceive the government of Ghana.”

Imani also contends that a search of the company’s website and other documents shows a Hong Kong address occupied by a number of SME companies “plying various trades such as in jewellery and textiles” and none with a seeming capacity to construct an industrial estate in Ghana.

The lobby group adds that it found no company listed as China Hasan on the Hong Kong address given on the website.

Ghana’s Ministry of Trade and the Ghana Free Zones Board (GFZB) have responded in a statement saying the company’s offices are actually located in Beijing. Imani Ghana counters that the website was “updated” with the new address after they raised complaints.

Furthermore, charges Imani, the change “was backdated to April 1, 2011.”

New address

The new address the company gives in Beijing also raises questions, Imani says. Reportedly it is located at No.19 Chaoyang Park Road, Chaoyang District, Beijing 100026.

“The only property on the address given by Hasan International turned out to be a luxury hotel built in traditional courtyard style: the Beijing Jun Wang Fu Hotel. The hotel has three floors yet Hasan International claims to be on the 19th floor of the property at this address,” adds the lobby group.

Following Imani’s assertions, the ministry of Trade has put up a paid advert in the national newspapers saying that “China Hasan International has not been awarded any contract for the construction of the proposed development in Ghana.”

The advert then adds: “The company’s subsidiary in Ghana, namely Hasan Investment Ghana Limited, has been granted a Developer’s licence to develop the Sekondi Industrial Estate. Under the provisions of the Free Zones Act, the Ghana Free Zones Board has the authority to award a Developer’s licence for the development of a free-zone enclave,” it added.

The ministry says representatives of the GFZB met representatives of China Hasan International during President Atta Mills’ state visit to China in 2010 “and were informed by the Ghana embassy in Beijing that they were a reputable company.”

However, the ministry has not explained the reported discrepancy between the Hong Kong and Beijing addresses.