Labianca Company Limited responds to OSP report
After weeks of silence following the publication of the Special Prosecutor’s report, the Labianca Group of Companies has finally come out to respond to the allegations by the Office of the Special Prosecutor.
Firstly, the company was not satisfied with the fact the OSP did not formally write to them concerning the report on its findings before its subsequent release and discussion within the media landscape.
“Although the Office of the Special Prosecutor has not written formally to the company on its findings as required by due process and fair ‘trial’ rules, we believe that the report findings are at variance with our recollection of events and submissions made to the office,” the company said in a statement issued on 23rd August 2022.
Also, it denied the allegations that its Chief Executive Officer, Ms Eunice Jacqueline Buah Asomah-Hinneh got customs advance ruling through influence peddling.
It added that the report of the OSP concerning the company has not been taken lightly as it[company] has urged its lawyers to commence the necessary legal procedures regarding the issue.
The statement further indicated that Labianca Group of Companies has always followed due process regarding customs advance ruling law under Customs Act 2015(Act 891) and insists that over the years it has ensured that periodic clearance audit checks are regularly done on the company to check undervaluation or overpayment of taxes.
It assured that as a company it is also committed to helping in development by complying with the laws such as paying taxes, investing right in the cold storage business and providing jobs.
The OSP recently said it recovered over GHS1 million (GHC 1, 074, 627.15) from Labianca Company Limite. It said the amount was from unpaid import duties which the company avoided paying after using the influence of its CEO to influence the process.
Results of the probe, however, led the OSP to demand further investigations into the activities of the Customs Division of the Ghana Revenue Authority while also requesting the implementation of an integrity plan to curb corruption.
Investigations were also commenced by the OSP into allegedly corrupt acts regarding tax evasion and how duties on especially frozen foods are valued and also accounts of processed foods making their way into Ghana between 2017 to 2021.
Some high-ranking officials within the Customs Division of the Ghana Revenue Authority have been fingered.
“Labianca Company Limited commenced operations in 2014 and it is wholly owned and controlled by Ms Asomah-Hinneh on all practical and legal considerations. The company, it appears, imports about two hundred (200) forty (40) footer shipping containers of frozen chicken parts, fish, pork and fries monthly primarily from Europe and the United States of America. It enjoys a substantial market share in the imported frozen foods industry,” the report noted.
The report, however, pointed out that for three years after the company commenced operations there was little engagement between them and customs after they settled the standard customs duty they fully started applications to the Customs Division of the GRA for the acceptance of the values of frozen foods they want to import.
Also, per findings of the OSP, when Labianca started applications Mrs Asomah-Hinneh was now the Western Regional representative on the Council of State and also serving on the governing board of the Ghana Ports and Harbour Authority leaving Madam Asomah –Hinneh politically exposed as defined under Section 79 of Act 959.
