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Addo Kufuor trembles at confab

Fri, 2 Jun 2006 Source: Chronicle

THE GHANA Armed Forces (GAF), after twice being evasive and virtually swallowing its own words on intended press conferences over the resale of the controversial Gulfstream G-III, has finally addressed Ghanaians. But this has come to be with the support of three cabinet ministers.

Addressing the media in Accra yesterday, the Defense Minister, Dr. Addo Kufuor, said legal advice available to his ministry indicated that the jet, being an old government property, did not need prior parliamentary approval.

What he said was mandatory for parliamentary scrutiny was the purchase of the 4 K8 jets and the simulator because it involved an international transaction and also had financial implications.

The minister also revealed that the deposit made for the sale agreement of the jet to the China National Aero-Technology Import & Export Corporation (CATIC) at $5 million, could eventually end up with a deficit balance if the cost of repairing it is more than the $5 million valuation.

He said in the event that parliament failed to approve what he called the second contract, Ghana could get only $400 or pay an additional $1 million for the disposal of the said jet.

But general consensus among journalist was that after all the presentation, Addo Kufuor, a presidential aspirant and the Chief of Air Staff, Air Vice Marshal J.O. Boateng, only succeeded in creating more doubts in the minds of public, leaving them more puzzled than before.

When the floodgates were opened for questioning, they came from all angles, underscoring the thirst of journalists for clarification of the confusion that the press conference had rather plunged the public into.

Interestingly, the minister responsible for Information and National Orientation, Mr. Kwamena Bartels, who had been loud-mouthed on the matter in the past few weeks, was prevented from answering a question fired by a Citi FM reporter about his claims on radio that the jet was meant to be an ex-gratia award for the former president.

Most of the questions were directed at Air Vice Marshal Boateng, who through his presentation suggested that the Gulfstream III Jet, before its disposal, had become worthless, and even indicated that by Mid-May this year, if the Aircraft had not been disposed of it could have become what he called a ?total scrap of no commercial value?.

The atmosphere during the questions and answers time was so charged that, the Defense Minister had to restrain journalists like Raymond Archer of The Enquirer and Roland Acquay-Stephens of ?Radio Gold 90.5 FM?, pointing out that they were not there for a debate.

Journalist who were not satisfied with answers to their questions virtually ?chased? Air Vice Marshal Boateng after the program for additional explanations to so many questions. But in a regimental manner, other senior officers whisked him away much to the displeasure of media practitioners.

Hon. Addo Kufuor admitted during his presentation that the confusion that had arisen stemmed from section of the deal, which related to the use of proceeds from the sale of the Gulfstream III Jet as part-payment for the 4 K8 jets and a simulator.

His explanation to this confusion was that the transaction was an on-going one, and as a result would be brought to parliament for the necessary ratification for approval or disproval.

Article 5 (clause) (c) states, ?If the second party (Ghana government) fails to execute the purchase agreement on or before the 31st day of July 2006, first party (CATIC) shall pay to the second party the difference between the market value of the Gulfstream III and the cost incurred by the first party in repairing the G III, which cost shall include, administration costs, where administrative costs comprises repair of discrepant parts and ferry flight from Accra to the repair facility.?

In his explanation, Air Vice Marshal Boateng maintained that this clause simply meant that in the event of parliament?s disapproval of the second contract, CATIC would pay Ghana the market value of the Aircraft ($ 5 million) minus the cost of repairs, and ferry flight from Accra to the repair center.

Air Vice Marshal Boateng disclosed in his submission that the technical evaluation team had estimated between $4.6 million as minimum and $6.4 million as maximum being cost of repairs to bring the G III from its current state to an airworthy status.

However, the Chief of Air Staff woefully admitted that the Chinese company never disclosed how much it would cost them to repair the aircraft, which he guessed could cost about $6 million.

The implication as it emerged during the press conference was that in the event that parliament failed to approve the second contract, and the Chinese company maintained that it spent over $6 million to repair the aircraft, Ghana would have to revalue the aircraft or pay an additional $1 million to the Chinese company plus the aircraft.

Another question, which was left unanswered, has to do with the minister?s assertion that the disposal of the aircraft did not need prior parliamentary approval.

The two failed to answer a question as to why they never recommended to the same ministry to dispose of the Jet in 2001 when HSBC said they could sell it for $9 million. In his conclusion, Hon. Addo Kufuor maintained that the sale of the Gulfstream III Jet was done in an absolutely transparent manner without any underhand dealing, adding that the purchase of the 4 K8 Fighter Jets and the Simulator would be sent to parliament for final approval or otherwise.

The contract for the disposal of the jet was signed on behalf of the Ministry of Defense by a certain Air Commodore, Issifu Sakib Kadri, while Wang Dawee, the vice president CATIC, signed for his company.

Source: Chronicle
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