Govt Has Not Paid Money for helicopters

Accra, Sept. 25, GNA - Government on Thursday said it has not paid any money to Wellfind Limited of united Kingdom (UK), nor any other company for the purchase of helicopters.

"No payment has been made to any company for the purchase of helicopters. Wellfind has not been paid anything. The money earmarked for the purchase of the helicopters is currently at the Barclays Bank, High Street," Defence Minister Dr Kwame Addo-Kufour said on Thursday.

He told Journalists at the Ministry of Information weekly Press Encounter in Accra, that the Ministry of Defence (MOD) suspended, rather than cancelled its contract with Wellfind.

The Minister was reacting to accusations that the government had breached an agreement on the purchase of the helicopters and that the country was to be sued for breach of contract.

He said the contract was suspended in April last year, when the MOD discovered that the relationship between Wellfind, the supplier of the helicopters, and the manufacturer - Messrs Kazan of Russia had developed some difficulties.

"It, therefore, became necessary to take steps to ensure that the national interest was not compromised as a result of the disagreements between the two companies," Dr Addo-Kufour said.

He said the suspension was communicated to the Ministry of Finance last year to ensure that no monies were paid to Wellfind till the situation had become clearer.

Dr Addo-Kufour said subsequent to a letter to Wellfind suspending the contract, written correspondence from Kazan of Moscow informed the Defence Ministry that Rosoboron Export of Russia had the monopoly or exclusive right to supply all types of helicopters produced by Kazan. He said when efforts to clarify issues concerning the provision of the helicopters, spares and ancillary products the MOD made representation to the Attorney General's (A-G's) Office for legal advice on the matter. On the advice of the A-G's office, Wellfind Limited was requested to provide financial guarantees to access initial payments that would be made to the Company.

Wellfind has agreed to that, and the Armed Forces Council, under the Chairmanship of the Vice President has been kept informed of developments concerning the purchase of the helicopters.

Dr Addo-Kufour said the MOD was in touch with Wellfind, and once Wellfind and Kazan were able to sort out their differences, the Wellfind Limited contract would be fully operational.

The Defence Minister said in view of the current developments, the Russian Embassy in Accra had been approached to speed up the purchases. The Wellfind has already issued a statement that it has thrashed the issue with the Ministry and that it was now prepared to start the transaction.