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General News of Monday, 31 May 2010

Source: GNA

State seeks adjournment in GIA trial

Accra, May 31, GNA - The State on Monday sought an adjournment in the case in which four former public officials and a businessman are being held over alleged financial malfeasance in the dealings of Ghana International

Airlines (GIA).

When the case was called, the Fast Track High Court trying the case was informed that a letter the Director for Public Prosecution (DPP), Ms Gertrude Aikins has signed, was seeking an adjournment because she was outside the jurisdiction of the court.

The letter indicated that she was on a national assignment in Uganda

and would return on June 12 and she was, therefore, praying for an adjournment till June 16 2010.

Mr Sam Okudzetu, who represented Professor George Gyan-Baffour, one of the accused persons, also prayed the Court to excuse his client as he wou ld be travelling to seek medical attention outside the country. The Court after hearing the submissions adjourned the matter to June

21, saying that was at the instance of the Prosecution (State). On the said date, the Court said, the DPP would respond to an earlie r application put in by the Defence Counsel.

The five accused persons in an application had prayed the Court to furnish them with the certified copies of documents to be used during the

trial. They said if given the necessary documents, they would be able to st udy them and quiz the witnesses properly to ensure fair trial. The accused persons are, Richard Winfred Anane, Former Minister of Transport; Samuel Crabbe, Former Greater Accra Regional Chairman of New Patriotic Party; Anthony Akoto-Osei, Former Minister of State at the Ministry of Finance and Economic Planning; Kwadwo Okyere Mpiani, Former Chief of Staff, and George Gyan-Baffour, Former Deputy Minister of Financ e and Economic Planning.

Four other accused persons Ralf Atkins; Kirk Heaton; Albert Vitali a nd Brain Brisby, all former directors of GIAL, were not in court. All the accused persons have been charged with stealing, causing financial loss to the State, fraud and deceit of public officer, regardin g the roles they played in the formation of GIAL and the subsequent liquidation of Ghana Airways.

Crabbe, who is also President of Unger Oaks Limited, minority shareholders of GIAL and Anane have been additionally charged with wilful ly causing financial loss to the State to the tune of about 4.9 million dollars.

Crabbe is being held solely for opening an offshore account, without

authority from the Bank of Ghana, conspiracy to steal and stealing. Akoto-Osei has six additional charges of wilfully causing financial loss to the State, fraud and deceit of public officer and misapplication of public funds. They have all pleaded not guilty to the charges and were admitted to

self-recognisance bail of GH¢300,000 each by the court presided over Mr

Justice Bright Mensah.

Ms. Aikins had earlier told the Court that Anane misrepresented fact s on GIAL, which was then not in existence, to the Cabinet of Former Presid ent John Agyekum Kufuor and misled the then Government to buy shares of a fraudulent Company. She said Anane's action subsequently led to the liquidation of Ghana

Airways.

The DPP said Anane declared that four companies had expressed intere st in Ghana Airways and later presented a letter of intent, which was signed

between Government of Ghana and GIAL to form a new company called New Gha na Airways (NGA), although GIAL was at that time not in existence. She said the memorandum Anane presented to Cabinet for signing, was dated September 9, 2004 but GIA was not in existence at that date. Ms. Aikins said that although PriceWaterhouse Coopers had rated NGA,

which had signed an agreement with Government to form GIAL, third after K LM and Ghanair, two other companies, which had submitted their bids to take over Ghana Airways, however, NGA won the bid.

She said Mpiani, on June 2, 2005, wrote to the Chairman of Governmen t Taskforce on Ghana Airways Limited authorising the taskforce to take all necessary steps to put the airline into formal liquidation. The DPP said Akoto-Osei signed a loan agreement, committing the Government to a financial obligation of paying GH¢15 million from the S ocial Security and National Insurance Trust (SSNIT) to GIAL. She said Akoto-Osei gave the amount from SSNIT to GIAL as a loan, without Parliamentary approval and at a time when the Minority shareholde rs of the Airline had abandoned the Company by withdrawing 1.9 million dolla rs from GIAL account without the consent of the Majority Shareholder, Government of Ghana.

Ms Aikins said Mpiani authorised the release of six million dollars to GIAL in September 2008, without Parliamentary approval. According to the Prosecution, Crabbe, who represented the Minority Shareholders in the Company, on June 27, 2005 withdrew 1.9 million dollar s from the Government of Ghana's account, without approval from the Governm ent (the Majority Shareholder).