A former Goldman Sachs banker, Asante Berko, made an appearance in federal court in Brooklyn, New York, on Tuesday, pleading not guilty to charges that he bribed Ghanaian government officials to secure a lucrative power-plant contract for a client. The arraignment of Berko, who holds dual citizenship in the United States and Ghana, follows his legal battle against extradition from the United Kingdom, where he had been employed at Goldman’s London subsidiary.
The legal proceedings took place before U.S. Magistrate Judge Vera Scanlon in the Eastern District of New York. Berko was released on a $600,000 bail, as confirmed by a court spokesperson. Berko’s legal representatives did not respond to requests for comments on the case. A Goldman Sachs spokesperson remarked that Berko had left the firm over seven years ago and that Goldman had distanced itself from the transaction in question.
The U.S. Securities and Exchange Commission (SEC) initially accused Berko in a 2020 lawsuit of orchestrating $4.5 million in bribes to Ghanaian officials. The alleged purpose of these bribes was to assist a Turkish energy company, identified by The Wall Street Journal as Aksa Energy, in winning a power-plant contract in Ghana. According to the SEC, Berko personally delivered at least $66,000 to members of Ghana’s parliament.
In 2021, Berko settled the SEC’s civil case by agreeing to pay $329,000 as part of an agreement that did not require him to admit to the regulator’s claims. However, in 2022, federal prosecutors unsealed a criminal indictment charging Berko with violating the Foreign Corrupt Practices Act (FCPA) and money laundering. The FCPA prohibits companies and their executives from paying bribes to foreign officials to gain business advantages.
The charges against Berko pertain to bribes allegedly arranged between December 2014 and March 2017. During this period, Berko was an executive director in Goldman’s investment banking division, working to secure a deal between Aksa Energy and the Ghanaian government for constructing and financing a power plant in Ghana. Prosecutors claim that part of the bribery scheme involved providing five Ghanaian officials with an all-expenses-paid trip to Turkey to view equipment for the power plant. During this trip, the officials allegedly received $5,000 each.
Despite scrutiny from Goldman compliance officials in 2015 regarding payments made as part of the Aksa transaction, the bribes were not discovered. Ultimately, Goldman did not finance the deal, and Berko left the bank in 2017, the same year the power plant became operational.
The unfolding of this case highlights ongoing issues related to corporate governance and compliance with international anti-bribery laws. As Berko continues to fight these charges, the case serves as a stark reminder of the legal and ethical challenges multinational corporations face in complex and often opaque international environments.
This case also underscores the broader implications of compliance and regulatory oversight within multinational corporations. The allegations against Berko, if proven, reveal significant lapses in internal controls and risk management processes. For Goldman Sachs, this case brings into focus the necessity of rigorous compliance mechanisms to detect and prevent corrupt practices. It also illustrates the challenges that global financial institutions face in monitoring the actions of their employees across different jurisdictions and the importance of maintaining strict adherence to international laws such as the FCPA.
Furthermore, the geopolitical implications of this case are notable. The power-plant contract involved in the bribery allegations is situated within the broader context of international business dealings in Africa, where competition for infrastructure projects can be fierce. The involvement of a Turkish energy company and the alleged bribes to Ghanaian officials underscore the intricate dynamics of international business, where ethical boundaries can sometimes be blurred in the pursuit of lucrative contracts.
In summary, Asante Berko’s case serves as a critical example of the need for stringent compliance and ethical standards in international business operations. It highlights the complexities and risks associated with cross-border transactions and the importance of robust governance frameworks to uphold the integrity of global financial practices.