Exposed: Akufo Addo’s in-Laws Project Unqualified US$ 24 million Tax Waiver

More damning details are emerged why it is strongly believed that the Akufo Addo administration is unduly trying to twist the arms of Ghanaian taxpayers to give his brother-in-law a controversial tax waiver of US$ 24 million for a US$ 73 million hotel project.

Apparently, the “strategic investor” basis for which Finance Minister Ken Ofori-Atta is seeking the tax waivers for Dr. Kwame Nyantekyi-Owusu’s Pullman Accra City Hotel & Services Apartments is bogus, according to the Minority Spokesperson for Finance, Cassiel Ato-Forson.

To qualify for tax waivers as a strategic investor, an equity holder must be pumping up to US$ 50 million into a project in Ghana, however, Dr. Nyantekyi-Owusu, who is incidentally President Akufo Addo’s brother-in-law is only contributing US$ 18 million in equity instead of the prescribed equity requirement totalling US$ 50 million.

The other equity holder in the Pullman project is the Ghana Infrastructure and Investment Fund (GIIF) which is contributing only US$ 13 million. The entire equity of the so-called strategic investors in the Pullman project are collectively bringing on board US$31.5 million instead of the US$50 million needed to qualify for the tax waivers being pushed through for them.

“The entire equity of US$31.5 m does not meet the minimum requirement of US$50m for a strategic investor status for tax purposes. In fact, Dr. Kwame Nyantekyi-Owusu (sponsor) is contributing only US$ 18.5 m. Clearly, this does not meet the US$ 50m threshold to qualify the equity partners  as strategic investors for tax purposes under the GIPC Act 2013 (ACT 865),” stated Ato-Forson in a letter of complaint sent to the Chairman of the Parliamentary Finance Committee Mark Assibey-Yeboah on February 13, 2020.

Also, unlike other strategic investors who source funds from outside Ghana or from their own accounts, the Pullman project being put up by Platinum Properties owned by Dr. Nyantekyi-Owusu is basically going to fall on Ghanaian banks to raise its needed funds, Whatsup News has gathered.

“The 75% debt that will be used for the project amounting to about US$ 94.5m will be funded by Ghanaian banks, in essence, the debt amount of US$94.5m will be drawn from Ghana’s economy and cannot be regarded or described as a foreign direct investment (FDI),” Mr. Ato-Forson explained.

In a rather curious transaction, the Jubilee House recently waded in to recommend a whopping US$24 million tax waiver on the Pullman project.

On Tuesday, January 28, 2020, the Minister of Finance Ken Ofori-Atta presented a Paper to Parliament requesting for waiver of Import Duties, Import VAT, Import NHIL Levy, Import GETFund Levy, Domestic VAT, Domestic NHIL and Domestic GETFund amounting to a whopping US$24 million on a hotel project estimated to cost US $ 73 million.

Whatsup News is in possession of a long paper trail of the request for tax waiver that went through the Ghana Investment Promotion Council (GIPC), the Finance Ministry (headed by President Akufo Addo’s Cousin), Office of the President and finally to the Ghanaian Parliament.

Curiously, the US$ 73 million project will consist of more than US$ 66 million imported materials and equipment, while only a paltry US$ 6 million of input will be sourced from Ghana.

Analysts say the reason for such high import is because Platinum Properties is certain it will enjoy massive tax waivers from its relatives in government.

On Monday, December 17, 2018, President Akufo Addo, cut the sod for the commencement of the project, as critics speculate that Dr. Nyantekyi-Owusu may be fronting for the President.

The project dubbed the Pullman Accra City Hotel & Services Apartments is a dual-hospitality project being touted as “Ghana’s largest and most distinguished hotel facility”