Former President John Dramani Mahama has said that the report by the Office of the Special Prosecutor (OSP) that found no evidence of wrongdoing on his part in the Airbus issue is a pleasant vindication for him.
He says no allegation of corruption including the Airbus ‘scandal” has been proven against him for more than seven years after leaving office.
“We in the NDC do not place ourselves above society, we are humble and honest enough to submit ourselves to investigative bodies if a basis for it arises. Relatedly, I have been out of office for more than 7 years and several months, and no allegation of wrongdoing has been proven against me including the baseless Airbus brouhaha that this government attempted to clothe me with.
“Once again today I say it is a pleasant feeling to stand vindicated,” the flagbearer of the National Democratic Congress (NDC) said when he delivered a lecture at the 10th anniversary of the death of PV Obeng in Kumasi on Friday, August 9.
The OSP after its investigations in the Airbus scandal case disclosed that John Mahama was ‘Government Official One’ in the Airbus SE case.
John Dramani Mahama, a former President and now flag bearer for the National Democratic Congress (NDC) was Vice President at the time the incident happened.
A breakdown of the Airbus bribery scandal
The deals covering them were argued at the time to be in line with the 2009-2012 Strategic Plan of the Ghana Armed Forces.
All three purchases, approved by Ghana’s Parliament after heated disagreements on the floor, were roundly marketed by the government of the day as a drive to modernize Ghana’s Air Force.
Funding for the purchase of aircraft
A further €11,750,000 million loan from the Fidelity Bank Ghana Limited was also approved by Parliament during the period for the acquisition of two DA42 MPP Guardian surveillance aircraft for the Ghana Airforce.
The House also approved a total loan sum of $105,370,177.09 from the Brazilian Development Bank (BNDES) for the purchase of an Embraer E190 jet for the country. The Embraer agreement was to cover related spare parts, relevant accessories as well as the construction of an aircraft hangar big enough to house three large aircraft.
Prior to the Parliamentary approval of the loan agreements, Minority Leader, Osei Kyei-Mensah-Bonsu had slammed the deals as both questionable and non-transparent, adding that the contract sums had been padded by the government.
One of the C295s acquired under the deal supported United Nations-led missions in Mali. The rest were bought, as the Government explained at the time, to support strategic operations of the Ghana Air Force including surveillance of the country’s offshore oil production fields, border patrol, the training of pilots and internal transportation of troops.
In November 2014, then President John Mahama had announced that Ghana planned to acquire more Military equipment, including five Super Tucanos, Mi-17s and four Z-9s, for the Ghana Airforce.
At the time, Ghanaian troops were said to have relied heavily on civilian flights for their movements and needed military aircraft to correct this anomaly. Despite opposition criticisms, the government went ahead with the purchase agreements.
UK Court’s judgement
The recent judgement by England’s Crown Court in Southwark would appear to have now given a new life to earlier suspicions that the agreements covering the C295s especially were corrupt. The January 21, 2020 decision approved a Deferred Prosecution Agreement (DPA) between the Serious Fraud Office and Airbus SE, a subsidiary of Airbus, after investigations exposed massive bribery scandals involving the aircraft manufacturer in breach of the Bribery Act 2010.
English law allows the SFO to postpone prosecution of an organisation based on an agreement between the SFO and a company or companies suspected to have committed economic crimes.
Such an agreement – (DPA) – requires a seal of Judicial approval to become lawful and may even allow the offending institution to avoid prosecution entirely.
The court, in its decision on such applications, considers among other things, whether or not the DPA before it is in the public interest.
Also, the terms of the agreement must be fair, reasonable and proportionate.
In the present case, the court found that the DPA is in the public interest and that the terms agreed to meet the tests of fairness, reasonability and proportionality.
The court took the view that prosecuting Airbus now would among other things, lead to massive job losses and decimate the company’s performance on the stock market in the immediate to long term.
Independent estimates suggest Airbus could easily haemorrhage some £200 billion in the long term if it faced prosecution immediately.
French and US authorities have also found similar evidence of alleged bribery involving Airbus officials and or their agents in other countries, including Russia and China.
In the case of Ghana, the Judgement of the Crown Court highlights instances where Airbus officials, as part of a scheme to obtain and or maintain contracts with the government, either bribed or agreed to bribe intermediaries with close links to a high-ranking state official said to have influence over the country’s aircraft purchase plans between 2011 and 2015.
The court documents did not mention any names but the timeframe stated in the judgement covered some periods of the Mills-Mahama era.
The first agreement to pay bribes in Ghana was to involve some €5 million which was disguised as a Commission to an intermediary – “intermediary 5” – engaged by Airbus to promote its proposal to sell two C295 aircraft to Ghana.
Eventually, due process tests exposed the dubious arrangements and no money was paid.
Subsequent approaches by Airbus succeeded, resulting in Ghana buying 3 C259 aircrafts through the multinational’s Spanish defence subsidiaries at separate times.
The deals were arranged through a number of intermediaries led by “intermediary 5”, said to be an unnamed relative of a powerful Ghanaian official who, at the relevant time, was in a decision-making position over the proposed aircraft purchase agreements.
However, after an internal investigation exposed the link between intermediary 5 and the unnamed high ranking government of Ghana official, a scheme was then hatched by the parties to route the transaction through a third party company of Spanish origin, which company had no previous dealings with Ghana.
The payments were disguised as commission on the contract amount. The Spanish third party company pulled out of a subsequent deal that handed Ghana her third C259 aircraft. This was after Airbus had engaged an external counsel to conduct due diligence on it. Intermediary 5’s subsequent claim that Airbus owed him some €1.6 million under the deal covering the third C295 was not honoured.
The DPA does not mean the Airbus and its officials are immune from prosecution for the alleged crimes.
Under English law, the SFO is entitled to, in due course, prosecute Airbus if it is satisfied that the company failed to comply with the terms of the DPA approved by the Court.
Indeed, ongoing investigations mean that while the SFO might, in the light of Airbus’ cooperation thus far, forgo prosecuting the aircraft manufacturer, it may, after the investigations bring criminal actions against the persons who actually paid or received the bribes complained of.
Such a move is likely to include the intermediaries in Ghana and related individuals. In such a case, the SFO may rely on Mutual Legal Assistance (MLA) provisions under English law to mount the relevant charges.
The post OSP Airbus report is a pleasant vindication – John Mahama first appeared on 3News.
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