General News

Danadams Pharmaceuticals CEO in court over alleged fraud and forgery

The CEO of Danadams Pharmaceuticals Industry (Ghana) Limited, Dr Yaw Adu-Gyamfi, is facing prosecution at the Criminal Court in Accra for allegedly perpetuating fraud and forgery in his dealings with the ECOWAS Bank for Investment and Development (EBID).


The former President of the Association of Ghana Industries (AGI) is also set to lose his properties including the Danpong Medical Centre and Head Office of Danpong Health Group, both situated at the Spintex Road and at Baatsona among others.

This was after the Commercial Division (6) of the High Court in Accra granted EBID a Writ of Fi Fa after persistent calls on Danadams and Dr Yaw Adu-Gyamfi to settle a judgment debt consequent upon terms of settlement on the basis of which the Court entered Consent Judgment on July 24, 2020, yielded no results.

On May 21, 2013, EBID approved a loan facility of $9,417,600, referenced loan agreement (No. 0078/AP/LA/BIDC/05/2013), to Danadams to produce anti-retrovirus drugs for HIV/AIDS patients in the entire ECOWAS region.

The loan facility was secured by two legal mortgages dated August 4, 2014, in respect of Dr Yaw Adu Gyamfi’s properties he made available to EBID for the payment of the principal amount, interest and other charges covenanted to be paid by Danadams to EBID in the event of a default on the loan facility.

The said loan was also secured by a legal charge created by Danadams in EBID’s favour in respect of equipment alleged by Dr Adu Gyamfi to have been purchased by Danadams with the resources of the loan facility from an Indian Supplier.

Under the terms of the facility, Danadams was expressly required to open an escrow account with a reputable bank in Ghana to be funded with an amount of $340,000 (representing one maturity in principal and interest) as a condition precedent for EBID’s disbursement of the facility.

In order to induce EBID to make disbursement of the loan, Dr Adu Gyamfi allegedly delivered to the Bank a letter dated July 31, 2014, purporting to emanate from the Royal Bank of Ghana, advising EBID of the opening of the escrow account and assuring EBID that the account had been funded with the initial amount of $340,000 as stipulated in the Loan Agreement. This letter was later found to be forged.

In addition, Dr Adu Gyamfi also delivered to EBID a horde of official documents, including customs documents, purporting to show that Danadams had pre-financed the purchase of the equipment from the Indian company in the total sum of $6,020,840.00 through swift transfers made through Royal Bank of Ghana. These customs documents also turned out to be forged.

Acting on the faith of these representations, EBID disbursed the first tranche to Danadams’ account with SG SSB Bank Ltd, Accra, the total sum of $6,020,840 on 14th January 2015, which Dr Adu Gyamfi acknowledged by a letter dated 15th April 2015.

EBID’s continuous due diligence and supervisory checks however uncovered grave revelations of fraud and forgery at a level never witnessed by the bank in its over 40 years of operations in the sub-region, perpetuated by Danadams and its CEO, Dr Adu Gyamfi.

A letter, purported to have been written by The Royal Bank of Ghana, confirming the opening and financing of the escrow account was an elaborate forgery created by cloning Royal Bank’s official letterhead and also forging the signatures of the Bank’s officials.

The escrow account (No.1410310748215), truly opened by Danadams with the Royal Bank, was not funded with the sum of $340,000 as the Royal Bank delivered to EBID the actual letter they issued to Danadams which was not delivered to EBID.

The Royal Bank issued a letter dated May 11, 2016, to Dr Adu-Gyamfi disassociating itself from his fraudulent activities and threatening to take legal action to purge its image.

Documents on Swift payments delivered to EBID by Dr Adu Gyamfi as evidence of the purchase of equipment from the purported Indian Company were elaborate forgeries manufactured by him.

Customs Declaration Forms delivered to EBID by Dr Adu Gyamfi as evidence of the importation of the equipment were fake or forgeries.

Notwithstanding the fact that he had executed or created a legal mortgage over his properties to secure Danadam’s repayment obligations to EBID, Dr Adu Gyamfi subsequently used the same property to secure Danadam’s repayment obligations to Royal Bank under a different facility in the sum of ¢7 million from Royal Bank.

Dr Yaw Adu Gyamfi diverted the proceeds of the EBID loan to other purposes other than for the purchase of the equipment, including paying off existing liabilities he and his company owed to SG-SSB Bank and other creditors.

As a result of these nefarious acts on the part of Dr Yaw Adu Gyamfi which constituted serious fraud and gross violations of the provisions of the Loan Agreement, EBID took steps to cancel and call the facility.

The Bank then referred the matter to its lawyers in Ghana to use the civil machinery to recover the loan, without prejudice to the pursuit of the criminal aspect of Dr Adu Gyamfi’s serial fraud and forgery.

On November 24, 2017, Dr Adu Gyamfi forwarded a proposal to the EBID, apologising for his misdeeds and committing to paying the full amount to the Bank.

The Bank responded and agreed to the terms and conditions of his proposals, however, after making a total payment of $900,000, EBID did not hear from him again.

When Joy News contacted Dr Adu Gyamfi for his comment, the CEO said he is unwell and cannot speak about the issue.

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