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Business News of Wednesday, 27 February 2008

Source: GNA

Payment of some Ghana Airways employees already concluded

Accra, Feb. 27, GNA - Forty-seven pilots and flight engineers, who are former Ghana Airways employees, have been fully paid their severance awards at a total cost of 1.4 million dollars.

The official liquidator of the company has processed payments totalling about 1. 9 million dollars to a second group of employees made up of general staff and cabin crew numbering 1,024. Ms Gloria Akufo, Minister of Aviation, who appeared before Parliament on Wednesday to respond to a question, said about 175 former employees, who are qualified claimants, are yet to be awarded severance payments.

The Minister was responding to a question on whether the severance and other end of service benefits of former workers of the defunct Ghana Airways have been paid.

She said the company has been in liquidation since June 22, 2005 and the "total creditor claims were estimated at 200 million dollars as against realizable asset value of 32 million dollars."

"In view of the huge deficit, government undertook to support the settlement of creditor claims subject to validation and parliamentary approval."

She said government undertook to provide a total funding of 6.5 million in two tranches of 4.5 and two million dollars to enable the official liquidator settle severance entitlements to some of the employees.

"The official liquidator will continue with the settlement of severance awards as soon as it receives further inflows including the second tranche of government funding of the 4.5 million dollars, the Minister added.