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General News of Monday, 24 June 2002

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Prez Jet: NDC attempts to divert public attention - Gov't

THE Government has expressed disgust and indignation over attempts by the National Democratic Congress (NDC) to divert public attention from its responsibility in the unwholesome arrangement in connection with the acquisition of the controversial Gulfstream jet.

It has, therefore, asked the NDC , if it has any genuine interest in helping Ghanaians, to do better to assist the government to establish the true ownership of the aircraft.

An official statement issued in Accra yesterday and signed by Mr Jake Obetsebi-Lamptey, Minister of Information and Presidential Affairs, said ?government considers most objectionable, the NDC?s pontification on the matter after committing the country to a deal most dubious and detrimental to the interests of the nation?.

It said the NDC could do the nation a lot of good if it assists her to establish those behind Gallen Limited, the shady shell company registered in the Cayman Islands, instead of trying to divert the attention of the people and government by ill-motivated utterances.

The statement pointed out that apart from these deceptions, the aircraft is unsuitable for use as a presidential jet in view of its very limited capacity, of only 10 passengers.

The statement expressed regret that as part of a deal to secure that unsuitable aircraft, the NDC government pledged over $14 million of the Ghana Armed Forces and Ghana Police Service earnings on peace keeping operations to an untouchable account in a New York bank.

It said the untouchable account, under the NDC agreement, can be drawn in the event of default on payment due to the lease without any reference to the Government of Ghana.

It said another offensive aspect of the NDC government?s deal was the fact that while the market value of the 25-year-old plane within the industry at the time of the transaction was estimated at around $7 million for an outright sale, the deal, which was only for a lease of five years, was to cost the Ghanaian tax payer $23 million.

?It should be understood that the Ghana Government does not own the aircraft and, therefore, has not been at liberty to just sell it off.?

Furthermore, the lease agreed by the NDC government was written in such a way as to open Ghana to potential huge losses in event of a forced sale,? the statement said.

It noted that the objective of the government?s negotiating team has, therefore, been to ensure that Ghana minimises any losses in abrogating the contract by agreeing on an arrangement that will not make the country liable for the potential penalties of the deal.

The statement said the Government of Ghana and the HSBC have been negotiating on acceptable settlement for the termination of the lease.

It said in the course of the negotiations last year, the terrorist events of September 11 in the US occurred, making it impossible to dispose of the plane without great loss.

The statement acknowledged the interest shown by Ghanaians in the Gulf Stream affair.

It said government is as anxious as everyone to ensure a speedy resolution of the matter with the supreme interest of the nation in mind. It said currently, negotiations between the government and the HSBC Bank for the minimum cost to Ghana are at an advanced and delicate stage.

?The objective of the negotiation is to terminate the unwholesome agreement under which the jet was brought into the country,? it said.

The statement assured Ghanaians that the full details of the whole arrangement will be made public in due course, showing the steps taken by the government to safeguard the interest of tax payers.

The statement expressed government?s indignation and disgust over attempts by the NDC to accuse the government of non-use of the aircraft as a means of diverting public attention from its responsibility in the unwholesome arrangement.