Controversy over presidential jet rages on

There seems to be no end in sight for the controversy surrounding the acquisition of the Gulf Stream III Presidential Jet, by the previous government, which the Kufuor administration has refused to use.

Following a press conference held in Ho by the National Democratic Congress during which it disclosed that an official of HSBC, the bank, which helped the previous government to acquire the Presidential jet visited the country last July and had discussions with the leader of government Business, J.H. Mensah about the jet, the controversy seems to have rear its head again.


The NPP government says the loan agreement on the financing of the lease of the Gulf Stream Presidential Jet cannot still be traced. Gallen Limited, the special purpose company incorporated under the laws of the Cayman Islands for the transaction and its directors have neither been seen nor heard of. However, in the midst of the confusion and uncertainties surrounding the lease, the bankers, HSBC Investment Limited have prepared a draft sales agreement for the return of the aircraft.


But the NDC has insisted that there is nothing fishy about the acquisition of the Aircraft, saying that an official of the bankers, HSBC, is now dealing directly with the Kufuor government.


The Government says it has also entered into discussions with HSBC Investment Bank to terminate the lease agreement. The agreement in question is between HSBC Investment Bank PLC, HSBC Bank Limited (formerly Midland Investment Bank) acting as the bankers, Gallen Limited, the owner and the Republic of Ghana, the lessee.


Government Spokesperson, Kwabena Agyepong who made available copies of the draft termination of the lease to reporters did not rule out the possibility of the government compelling the former Finance Minister to make documents on the agreement available.

The lease payment due on April 2001 together with part of payment due on October 30, 2000 and associated costs, total about $2.2 million. Meanwhile, the Minority Chief Whip, Doe Adjaho has questioned why the government did not cause the arrest of the HSBC official when he visited Ghana after the NPP had gone public about the improper acquisition of the aircraft.


He challenged the NPP government to fly back the jet or use the jet for its intended purposes. Otherwise, he said, the continuous detention of the jet in Ghana would cause considerable loss to the state.


In May this year, the government said it will soon be able to dispose off the Jet without any legal wrangling. This follows the successful acquisition of enough documentation, which will prepare grounds for the sale of the Jet, the Leader of Government Business, Mr. J.H. Mensah, had disclosed in an interview with the Daily Graphic.


He had said the sale has become necessary because government pays about $1.5 million every six months for the jet which is hardly used and can carry only 14 passengers.


The purchase of the Presidential Jet by the former NDC government has been a subject of debate before and after the NPP government assumed power. Subsequently the NPP government announced that it will sell the jet which was acquired without parliamentary approval. There are a lot of unanswered questions about how the jet was acquired, the purchase agreement, source of purchase, mode of payment and the lease arrangement.