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General News of Friday, 25 October 2002

Source: Evening News

Sordid revelations on Ghana Airways

The Forensic Audit that was commissioned by the government into the beleagured national carrier, Ghana Airways has been completed.

Prominent among the issues that were contained in the audit report submitted to government, is the revelation that the former Chief Executive Officer (CEO), E.L. Quartey, gave out free and discounted air tickets to certain public officials and friends who travelled on Ghana Airways to the USA, Johannesburg, London and other destinations.

A memo dated 26 June 2000 and written by the Special Assistant of the Ghanair Boss, B.K. Otoo, chanced upon by The Evening News which was referred to in the Audit report gave the names of the officials and friends who benefited from these free and discounted air tickets as Ato Ahwoi, Ms Sherry Ayittey, Rev J.Y. Yamoah and Victor Gbeho for Boboli, Esther and Col B.G. Kusi.

Ato Ahwoi was given a ticket number 2374401042242 to New York- Accra at the cost of $100, Accra to Johannesburg to Accra, $1,515; Mrs Ayittey- Accra-Johannesburg-Accra at the cost of $240; K. Mbeah- Accra-London-Accra, $908; Rev J.Y. Yamoah- Accra-London-Accra, $1,008 with that of Victor Gbeho for Boboli, Ester and Col. B.G. Kusi amounting to $10,069.

Another memo generated by Otoo on 21 March 2000 gave the name of L. Ankrah, Accra-New York-Accra, $950; J.L. Ankrah, Accra-New York-Accra, $950; L. Ankrah, New York-Indianapolis-New York, $44; J. Ankrah- New York-Indiana-New York, $44; Mrs D.M. Quist- Accra-London-Accra, $720; J.A. Selby- Accra-London-Accra, $60; Mrs Nelson-Accra-London-Accra, $1094; D. Narh- Accra-Johannesburg-Accra, $1403; Mr Mensah- Accra-Johannesburg-Accra, $1,403 and Mrs I.J. Otuanoboah- Accra-London-Accra, $100, all amounting to $$7,568.

Apart from this, Quartey caused ?100m to be paid to Business Development Consultancy (Ghana) Ltd, which was to be charged against his salary on 2 May 2000 and another ?45m to St Anthony?s Anglican Church Accra on 2 May 2000 also against his salary but these were not done.

Snippets of information gathered from the report also recommended that the past executive and General Management of Ghana Airways totally failed in their duties in ensuring that the internal audit function was active and performing to ensure the existence of checks and balances in the airline?s operations.

It said by their actions, they totally sacrificed shareholders interest and should be severely sanctioned. It again said all CEOs and Senior Executive staff since 1998 should be sanctioned severely for the non-performance of external auditing of the accounts of Ghana Airways.

The Forensic Audit report said all board members since 1998 should be severely sanctioned for non-performance of the external auditing of the Accounts of Ghana Airways.

The report further said that no matter how government intends to resolve the problems confronting the airline, addressing these lapses should be considered vital component of the shareholder?s responsibility.