Peprah and Rawlings, who stole Ghana's $5million?

President John Agyekum Kufuor yesterday told Journalists that the “government and the media owe it to the people of Ghana to provide light” on the state of affairs of the country.

And, this he did on the saga of the aircraft that Rawlings and Peprah got, the Gulf Stream III, Presidential Jet. President Kufuor revealed that already $5million of Ghana’s benefit from the HIPC initiative has been paid on the $25million lease of the aircraft.

The question is to whom has the $40billion or so being paid? Also, HSBC Holding Plc, the Financial Institution in the middle of the controversial deal is currently facing serious investigation in Europe involving money laundering.

With the actual ownership of the small but scandal rigged aircraft still a stealth riddle, fingers remained pointed at the two main Ghanaian players-The Finance Minister who struck the deal and the President who was meant to benefit from it, namely Kwame Peprah and Jerry John Rawlings.

There is great suspicion that the two men might have gotten their fingers a little too sticky with this. Exactly a year ago, “The Statesman” reported that Kwame Peprah told the Serious Fraud Office investigators that former President Rawlings was the source of the deal and the person “who first disclosed the existence of the jet and recommend its acquisition.”

The admission implies that in any subsequent prosecution, both the former President and his Finance Minister, whose deputy, Victor Salomey is already languishing in jail, would appear to be the usual suspects.

President Kufuor told millions of Ghanaians at yesterday’s press conference held at the castle that “somehow, the lessees (of the jet) arranged for the payment on lease” by the Ghana Government to the lesser, Gallen Limited, through an account in New York, without specific Parliamentary approval, $5 so far has been paid out.”

Re-affirming feelings of many Ghanaians, the President coolly stated, “we suspect fraud.” Kufuor explained that the second-hand 12-seater aircraft should not have cost more than $7 million to buy outright. Also, he suggested that the conduct of Mr Peprah, who negotiated the deal, “has not been satisfactory.”

The President with expression of bemusement on his face, wondered how Mr Peprah could negotiated and sign the lease agreement on behalf of the Government of Ghana and also on behalf of the leasing company, Gallen Limited.

This by any business standard is most peculiar, to say the least. Some Legal experts “The Statesman” contacted in the United Kingdom and Ghana are of similar opinion that the best way to solve this puzzle and identify the true ownership of this aircraft is to take the matter to the law courts.

Peprah’s connection with both contracting parties is said to contain enough elements to raise the possibility of a prima facie case and another summons to the Fast Track Court. This could require all parties involved, including representatives of the enabling bank, HSBC, to give information. HSBC, with an international reputation to keep, may wish to disassociate itself from the controversy by being more forthcoming.

With headquarters in London and listing on four major stock markets around the world, HSBC Holding plc is one of the largest banking and financial services organisations in the world with a market capitalisation of $109billion.

Serious Fraud Office sources have revealed that Peprah had allegedly referred to HSBC, a public-owned company not known to dabble in the aviation business, as owners of the leasing company, Gallen Limited, when he was interviewed.

But an extensive search undertaken by this paper drew a blank on Gallen being a subsidiary as alleged. HSBC’s international network comprises some 7,000 offices in 81 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa and Gallen is missing on the list.

Also, when contacted, HSBC wrote back to the SFO with an implied denial, directing investigators to talk to Kwame Peprah, as he was “the best man to answer question on Gallen.” A new development appears to offer clues as to how such an allegedly fraudulent deal could have been facilitated by HSBC.

The Spanish branch of HSBC (Economic podria multar of HSBC por mantener cuentas opacas een Espana) is currently under investigations by the Spanish Commission for the Prevention of Money Laundering.

The British Bank is facing the threat of fines for keeping opaque accounts, supporting allegations that some scrupulous characters to defraud Ghana of millions of dollars could have used the bank.

The latest revelation appears to confirm exposes by this paper, which has for the past three year since the jet’s acquisition, maintained the suspicion the Gallen was nothing more than a “shell company.”

The trouble that investigators have faced centres upon the human faces behind the apparent ghost company, Gallen Limited. True to its manifesto pledge, the NPP government has refused to use jet on account of the apparent shady manner of its acquisition. Recently, the “Accra Daily Mail” carried a comprehensive investigative report, which threw further light on the mystery.

Rawlings and Peprah may have some answers, which may bring this matter to an end. Whether the answers would be given voluntary or through the authority of the Fast Track Court remains to be seen.