A Banking and Finance Expert has told an Accra Economic and Financial Court that a letter signed by Dr Cassiel Ato Forson requesting for letters of credit to be established by the Bank of Ghana in favour of Big Sea Trading LLC of Dubai, is not an application for an LC.

Alexander Kofi Mensah Mould, who testified as an expert witness on Thursday in a case of causing financial loss to the state brought against Dr Forson, who doubles as Minority Leader in Parliament, explained under cross examination by the Attorney General, Godfred Dame, that whereas the Ministry of Finance needed write to the BoG requesting for LCs to be established, that letter alone cannot trigger the establishment of an LC unless there is a proper application from the MDA for whom the LC is to be established.

The former Chief Executive Officer of the Ghana National Petroleum Corporation (GNPC), had told the Court during cross examination at the last sitting that letters signed on behalf of the then Finance Minister by Minority Leader, Dr Cassiel Ato Forson, requesting for the establishment of letters of credit in favour of  Big Sea General Trading LLC of Dubai, was only a first step in the process of  establishing the LCs, and cannot constitute payment.

Mr Mould added that there was no way the Bank of Ghana or any other bank would set up an LC on the basis of the letters written by Dr Forson.

He further explained that the only document required in the establishment of such an LC would be the application forms filled by the applicant for the LC which in this case was the Ministry of Health.

The witness, who has extensive experience in trade finance and the establishment of LCs due to his many years of work at the Union Bank of Switzerland and Standard Chattered Bank in the United States of America, further stated that LCs in themselves were not payment and that they constituted a guarantee of payment upon the occurrence of a  very specific event.

Mr Mould stressed that his review of the documents presented in evidence by the prosecution showed that it was "fallacious" to allege that by merely signing a letter on  behalf of the Minister of Finance requesting for the establishment of an LC in favour of Big Sea, Dr Forson had caused financial loss.

The witness also indicated that based on his knowledge of Ghana's financial management laws, only the Finance Minister could authorise a request for the establishment of the letters of credit in question.

He said it was not unusual for Deputy Ministers to sign letters on behalf of their Ministers.

Dr Cassiel Ato Forson has been accused of causing financial loss to the state for allegedly causing an LC to be established in favour of Big sea for the supply of 30 ambulances  without authorisation.