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General News of Monday, 12 August 2002

Source: Abdul Hakim Ahmed

Party Activists' Hajj Cost Ghana ?1.4 bn

GOVERNMENT has frittered away ?800m in bailing out the debt-ridden National Hajj Board from its financial problems in the face of mounting pressure from its creditor, GhanaAir, to settle the outstanding debt of $160,100 (?1.4b). The National Hajj Board, a quasi- state institution whose role is to supervise the trips of Ghanaian pilgrims to Hajj has been in default for over five months and has shrugged off numerous requests from the management of the airline to settle the debt.

The debt is the arrears of what the government had paid to finance the trip of party activists to Hajj in Saudi Arabia.

The board, which exists on a financial knife-edge, made a desperate move to contract a loan from the Agricultural Development Bank (ADB) to pay the arrears. The ADB dismissed their request saying they are not a legal entity and therefore not creditworthy, it is learnt.

The office of the Chief of Staff made two separate cash payments of ?400m each on 5th and 11th June this year to reduce the ballooned debt. The payment is the outcome of the numerous representations made to both the Vice-President and the Chief of Staff on the matter by the management of the floundering national airline.

There has been the assurance on the part of the government of topping the remaining amount of ?600m ($60,100).

The remnant of the pilgrims’ luggage left in Saudi Arabia as a result of the board’s indebtedness has been brought down.

Some prospective pilgrims who had genuinely paid to the board on the eve of the pilgrimage had their monies refunded to them.

They were then left stranded in Accra after informing their kith and kin that they were going to Hajj.

An insider told the Concord that the stranded pilgrims were at the last minute replaced by senior government officials.

The officials however declined to pay to the board thereby burdening it with the foregoing debt.

Concord has gathered that, government has backed off its earlier attempt to extract the money from the officials responsible for the financial mess The internal forensic audit that would have unraveled the mystery behind the loss of the staggering ?1.4b is in limbo.

Consequently, the Chief of Staff, Mr. Kwadjo Mpiani, dithered in his earlier move to settle the debt.

The Deputy Minister of Presidential Affairs, Muktar Bamba, who is also the Chairman of the board, has been reticent about the issue. The last time Concord contacted him, he banged the phone with fury before this reporter could ask him a question.

The Chief of Staff in his reaction said he is oblivious of any debt between the Hajj Board and Ghanaiar.

However, when this reporter reminded him of an earlier publication in one of the dailies in which his office was mentioned, he said it is not Concord’s role to do a follow-up on a story carried by another paper. The Chairman of the Ghanaian Hajj Committee, Mr. Saah Addison, said the Chief of Staff made two direct payments to the company, which resulted in the reduction of the debt.

Mr. Andy Awuni, the special adviser to the Vice-President advised this reporter to distance the Veep’s office from the activities of the board.