Forensic Audit Saved Ghanair $434,000

....MANAGER TO BE SURCHARGED WITH INTEREST
It is becoming increasingly clear from THE INDEPENDENT's study of the forensic audit and review of the operations on the ailing national carrier, that, mismanagement, rather than anything else is the major cause of the airline’s woes today.

A London-based cargo handling company, Messrs. Ogden Cargo/Menzies Cargo Group refused to pay Ghanair an amount of $434,865.33, it had collected on behalf of the airline for a period of over two years.

This happened at a time when Ghana Airways was always sourcing loans at outrageous interest rates to carry on business. Messrs. Ogden was engaged by Ghanair to handle cargo that is sent to London on what is known in the airline industry as “Charges Collect” basis, a system under which payment for such cargo is made in London or the destination of the cargo rather than Accra.

Ogden Cargo took advantage of the lax Internal control system of Ghana Airways to make such under payment in certain instances as a result of wrong exchange rates in the conversion of payments from pounds sterling to dollars.

The shocker on the whole deal is that when the London Office of Ghanair was requested by the forensic auditors to provide a copy of the agreement regulating the relationship between the airline and the company, it could not.

Until recently, January 2002 that the Ghanair Officer in charge of ‘Charge Collect’ attempted to reconcile payment with Ogden Cargo for the years 1999, 2000 and 2001. The question the auditors pose is “how can Ghana Airways allow a cargo handling company to collect all the freight on goods sent by air to London for three years without accounting for all the money to Ghana Airways”?

The auditors recommend that the Manager in charge of Accra-London Charges Collect should be surcharged with the interest lost to the company on the said amount for failing to ensure that freight amount covering goods he dispatched to London were collected and paid to the company.