Ghanair On Hold, Osafo-Maafo Tells Tales of Malfeasance

The fate of the beleaguered Ghana Airways, the national carrier now hangs on a thread as government now awaits the result of the ongoing intricate analysis into the books of the troubled airline to take an informed decision.

Hon. Yaw Osafo-Maafo, Minister of Finance, interacting with a cross-section of journalists at a post-budget press briefing said Government can only come to a conclusion about the national carrier after the detailed analysis that is ongoing is completed.

He emphasised that Government would not fling away the tax payers money when most of the transactions seem to be tainted with corruption.

"You see let us look at it, if the debt Ghana Airways owes are basically tainted with very serious corruptions. That is why we should look in detail and take a decision that is more beneficial to Ghana than to any individual.

"Not until I have detailed figures on each of the things that have happened, I will not bail Ghana Airways with the tax payers money", the Finance Minister said.

He noted that another case in point is where Ghana Airways was said to have borrowed from an individual in London (a Nigerian, Chronicle learnt independently) at 24% interest rate at the time when interest rates on borrowing in pounds sterling was 6%:

"Borrowing from the international market is either Libor plus two or plus three and, therefore, interest rate on the London market has never gone beyond the 12% or 13% mark," he explained.

"So if someone borrowed at 24% in pound sterling and we have been paying that interest to him, do you think we should continue to pay and pay our capital debt?

Reacting to a question as to what kind of option Government is considering with regard to bailing out the troubled National Carrier, Hon. Osafo-Maafo said, "if we are going to pay we are going to pay with your money, mine money, the tax payers' money, our VAT money, our IRS money and with all our money we are collecting; that is what you should bear in mind and not something that we should be emotional and sentimental about.

So not until I have some fair figures I cannot say which options are fixed.

Even though the impression is being created that the government is reluctant about the airline, the minister has on some occasions bailed the airline out by way of debt payment.

"The first payment I made outside when I became Finance Minister, was to pay $5million to AITA (fees for Ghana Airways), because Ghana Airways was not going to be allowed to fly.

They owed AITA, and how will you belong to an organisation if you can not pay your subscription fee (AITA fees are just subscription fees).

"So I said yes I am going to pay this for you, can you then pledge the sale of your ticket to London to cover the payment, I was told that the total fees sold for London has already been pledged.

Then I said can you pledge the sale of your ticket to New York and Washington?

I was told that had been pledged too.

To his amazement, the Minster said the West African group money had also been pledged.

"So there was nothing that I could take, so I paid that money because I couldn't at that time allow Ghana Airways not to fly".

Seven months later, I had to bail Ghana Airways out for their maintenance bill, because they have not been paying the maintenance for their vehicle to an Italian firm and they were in difficulty,

So it is not like we are not doing anything for them, we are trying to do something for them but there is a limit to how much we can do.

The viability of the Airline should be more interesting to me and you than just the payment.

All these debts have been inherited from the previous management headed by Mr. J. Quartey and the Ghana Air Board.