Revealing 2011 Hansard shows NPP suspected GH₵10m ‘kickback’ on Airbus deal
Scene: Parliament House
Subject: Credit Agreement between Government of Ghana and Deutsche Bank Sociedad Anonima Espanda (Spain) for two C-295 Military Aircraft for Ghana Armed Forces.
The ‘manhunt’ for the €3.9m bribe-taker is on
A UK court has fined Airbus £3bn after it admitted to paying bribes in several countries including Ghana to push plane purchase agreements.
UK court documents show approximately €3.9m was paid through some intermediaries, eventually landing into the hands of a close relative of a highly placed, elected government official in Ghana.
There is a media manhunt for the identity of this intermediary and the government has tasked the Special Prosecutor to investigate the saga that happened under the Mills and Mahama presidency.
What role did Parliament play in the lead up to arguably the biggest bribery scandal in Ghana?
Theghanareport.com goes back into the Hansard to replay the debate of July 20, 2011, on the government’s decision to buy Airbus C-295 for the military.
Key players on the floor of the House that day were five NPP MPs led by Minority leader Osei Kyei Mensah Bonsu.
The other NPP MPs: William O. Boafo of Akropong constituency, Joseph Aidoo of Amenfi East, Hackman Owusu-Agyemang of New Juaben North, Papa Owusu Ankomah of Takoradi, Isaac Asiamah of Atwima Mponua and Dr Anthony Akoto Osei of Old Tafo.
Holding down the NDC line of defence for the deal were Alhaji Sumani Abukari of Tamale North who is deceased, MP for Ayawaso East (Maj. (Dr) (Alhaji) Mustapha Ahmed (retd), Moses A. Asaga of Nabdam constituency, Deputy Finance Minister Seth Terkpeh, Alhaji Fuseini of Sagnarigu and John Tia Akologu of Talensi constituency.
They were led by Majority leader Mr Alban S. K. Bagbin who was MP for Nadowli Kaleo Constituency.
What were the sticky points of disagreement?
The NPP MPs were worried there was no due diligence report or value for money audit available to the House on the purchase agreement. It appeared the planes were being bought because the military wanted it.
This position was summed up by Mr Owusu-Agyemang when he said:
“Nobody was able, including the Hon Minister, to tell us of the agency in Ghana even if it is local, indigenous which did the due diligence, which did the comparative analysis of the prices. We asked for it and the Hon Deputy Minister has just answered it, that that was not done.”
“What was done, we were told by the Minister was that the military had gone and done their homework and that is what they have brought. Doing your own homework, marking your own marks to get 80 per cent out of 100, is not the way to go.”
“That is what they did in the first year and they got 80 per cent out of 100. That is not the way to go..”
Osei-Kyei Mensa Bonsu accuses NDC government of trying to get kickbacks
But the biggest argument was made by the Minority leader Osei Kyei-Bonsu who took on several NDC MPs.
His position was that the government was buying an aircraft which the manufacturer stated on its website as costing US$22 million. But Ghana was buying it for €24.5 million.
The Minority leader wanted an explanation for the difference.
“But it cannot be said that the manufacturers themselves are telling us that the shell cost is US$22 million and you come before us and tell us that it is €24.5 million. It cannot be justified.”
“I do not want to go the path of E. T. Mensah who said that, “this is being done indecently to attract kickbacks for some people”. I do not want to go that path at all.”
NDC John Tia Akologu tried to respond to the Minority leader, expressing his surprise that Osei -Kyei Mensa Bonsu could accuse the Majority of trying to rush the agreement and sidestep Standing Orders.
The Minority Leader dismissed him quickly and plainly.
“Mr Kyei-Mensah-Bonsu: Mr Speaker, with respect to my Hon colleague, I do not know what value he has added to what I have said.”
Later, NDC MP for Ayawaso East, Maj. (Dr) (Alhaji) Ahmed (rtd), would attempt an explanation. He said the $22m was the shell price of the military aircraft, but the €24.5m was the “operational cost” of the plane.
The shell price is the cost of the plane when it has not been fully fitted to travel. The Minority leader replied, accusing him of failing to pay attention to the debate.
“The Hon Deputy Minister for Water Resources, Works and Housing would often not listen to what we are saying and when we have finished, he takes us back”
Osei-Kyei Mensa Bonsu explained again that the things that make up the so-called operational cost are all listed in the agreement that puts the cost at $22m. In effect, the NDC MP has failed to explain the difference which was nearly 10m cedis.
The Minority Leader who was fired up during the debate now jabbed the NDC MP, Maj. (Dr) (Alhaji) Ahmed (retd).
“Mr Speaker, it is unfortunate that the Hon Deputy Minister for Water Resources, Works and Housing, himself, a retired Military man –– I know he is not retarded –– I know. He is retired but not retarded”
The Minority Leader insisted all the explanations given him, suffered “a deficit of rationalization”