In a twist of events, the management of Midsea Company Limited late last Tuesday evening admitted acting as agents for the Ghana Football Association (GFA) in the Glo deal.

Last Friday, the president of the GFA, Kwesi Nyantakyi maintained that the Midsea acted as agents in the Glo deal upon recommendations by its earlier agents, Afrisat, but the directors denied knowledge of the deal.

This prompted the Serious Fraud Office (SFO) to step in and invite the GFA officials to show up at the SFO offices on September 13 with the needed documents.

The admission by the Midsea management in a press statement issued on its behalf by its solicitors, therefore, was in sharp contrast to the denial of the directors of the company who had earlier said “ they had neither dealt with or received any money from the GFA.”

Dr Dominic M. Ayine representing Ayine & Felli Law Offices, confirmed GFA’s statement that Midsea acted as agents in brokering the deal, initially started by Afrisat International.

The statement also said it was not true that one of the directors of the company, Professor Marian Awurama Addy, denied knowledge of the transaction but rather denied to engage the media on the issue because “she did not have details to talk to the media on the minute by minute aspects of the transaction.”

According to Dr Ayine, Midsea, represented by the Managing Director, Anthony Cole, when approached by Afrisat Company to act as agents in the deal, agreed to the offer despite it being outside its area of core business because “Midsea saw this as a significant business opportunity in spite of its lack of experience in this field and took advantage of the deal to enhance its earnings and diversify its business in the face of a slump in the real estate market due to the global recession,” explaining that “ indeed, no rational market actor presented with this opportunity would have turned it down.”

The statement explained that in or about October 2008, Midsea was approached through its managing director Mr. Anthony Cole, by Afrisat International, a South African company to act as its agent here in Ghana for the sole purpose of executing an agreement with the GFA in respect of the Glo sponsorship of the premier league.

By a letter of agreement dated October 20, 2008, Afrisat International acting through its managing director, Mr Rene Williams Koue Bi, appointed Midsea as its agent to enter into and execute the agreement with the GFA.

The said letter of agreement unequivocally stated that Afrisat International would lend its expertise, knowledge and skill in the brokering and implementation of sports sponsorship deals to Midsea for the efficient and effective implementation of the agreement with the GFA.

In consideration of its services, Midsea was to retain a percentage of the fee payable under the sponsorship deal and to remit the remainder to Afrisat International as per instructions.

Per the agreement between Afrisat and Midsea, the agent retained five per cent of the said commission from the deal, with the 95 per cent forwarded to Afrisat for the major role it played in getting the deal.

In the circumstances of the Glo sponsorship deal, the management of Midsea took the decision to accept the agency deal with Afrisat International with a view to enhancing the financial fortunes of the company in the face of a slump in the real estate market.

That, according to the solicitors, was certainly a prudent decision which management communicated to the board of directors in broad terms given that the deal did not fall within the core business of the company.

It stressed that it was not entirely unusual for the board members of a company to have only a general idea of the numerous transactions that management enter into on behalf of the company on a regular basis.

“In other words, it is not the case that board members are not usually apprised of the details of every transaction involving the company and Midsea is not an exception,” the statement indicated.

It therefore described as baseless and overboard, the description of the deal as ‘fishy and illegal because the directors had denied knowledge about it.”

The solicitors who issued the statement on behalf of both Afrisat and Midsea, said they had drawn the conclusion that those who were behind the publications were doing so for reasons other than protecting the public interest saying the faceless persons behind the publications had a vested interest in disrupting the arrangement for their private gain.

The solicitors warned that they had the firm and effective instructions of their clients to take legal action to protect their interests and reputation and stand ready to do so against any person or group of persons seeking to undermine the agreement between Midsea and the GFA.