Read: NDC vs NPP parliamentary debate in July 2011 over Airbus deal
What role did Parliament play in the lead up to arguably the biggest bribery scandal in Ghana?
Theghanareport.com goes back into the Hansard to replay the debate of July 20, 2011, on the government’s decision to buy Airbus C-295 for the military.
Key players on the floor of the House that day were five NPP MPs led by Minority leader Osei Kyei Mensah Bonsu.
The other NPP MPs: William O. Boafo of Akropong constituency, Joseph Aidoo of Amenfi East, Hackman Owusu-Agyemang of New Juaben North, Papa Owusu Ankomah of Takoradi, Isaac Asiamah of Atwima Mponua and Dr Anthony Akoto Osei of Old Tafo.
Holding down the NDC line of defence for the deal were Alhaji Sumani Abukari of Tamale North who is deceased, MP for Ayawaso East (Maj. (Dr) (Alhaji) Mustapha Ahmed (retd), Moses A. Asaga of Nabdam constituency, Deputy Finance Minister Seth Terkpeh, Alhaji Fuseini of Sagnarigu and John Tia Akologu of Talensi constituency.
They were led by Majority leader Mr Alban S. K. Bagbin who was MP for Nadowli Kaleo Constituency.
Photo: A.S.K Bagbin and Osei Kyei Mensa Bonsu
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Minority Leader (Mr Osei KyeiMensah-Bonsu): Well, Mr Speaker, I thought because two others were up already, you were referring to them and selecting one of the two, that was why I did not –– but I may, with your indulgence, want to make a few points.
Mr Speaker, as has already been said by Hon Colleagues who have spoken earlier, I think in principle, this is something that we should be supporting. The CASA 295 Military Transport Aircraft is, as has been said, a tactical military transport aircraft. It is going to provide tactical and logistics support, and it is also to facilitate air dropping and medical evacuation, as well as even providing humanitarian assistance to the civilian populace.
Mr Speaker, to date, countries that have purchased the CASA aircraft, include Spain where it is manufactured, Poland, Brazil, Switzerland, Jordan and the United Arab Emirates. Mr Speaker, the United Arab Emirate’s four purchases are for maritime patrol missions. The small size C-295 will, without doubt, complement the medium-size E190 transport aircraft which has just been approved. Mr Speaker, Brazil has purchased 12 of the C-295 aircraft to date.
Finland has also purchased two, to replace their aged Fokker 27 aircraft. Mr Speaker, but again, we go to the issues that we raised. This aircraft, to the best of my knowledge, is not going to be configured. Again, we look at the shell cost. On the Internet from the manufacturers, the aircraft, otherwise, called “Persuader”, is the same aircraft. Mr Speaker, the cost price of the C-295, the Shell is US$22 million from the manufacturers –– their own Website.
Here, we are saying that it is E24.5 million. Again, you wonder where these figures are being conjured from. Mr Speaker, the capacity of the aircraft is the same; the cargo weight is 9,250 kilograms or 20,392 pounds, the maximum take-off weight –– all these things are provided for in the Agreement that is before us –– the same thing.
So how come the price variations once again? Mr Speaker, we have said that we want the military to be supported, and if we can make savings and purchase more of the aircraft for them, so be it. But it cannot be that the manufacturers themselves are telling us that the Shell cost is US$22 million and you come before us and tell us that it is E24.5 million. It cannot be justified.
Mr Speaker, the 24.5 million euros certainly, is going to be in the region of about US$35 million –– US$35 million for the purchase of one, when we know that the manufacturers themselves are saying that the cost of the C-295, also known as “Persuader” is going for US$22 million. 2.55 p.m.
Mr Speaker, it is for this reason that we said these matters should go back to the joint Committee, for them to do proper due diligence and then come back to us. [Interruptions.] This is 2011–– is 2011 price. That is what they have said. Mr Speaker, it is unjustifiable –– [Laughter] –– Mr Speaker, this is too serious to be reduced to a laughing matter as the Hon Majority Leader is inducing it to.
Mr Speaker, it is too serious a matter. Mr Speaker, the dimensions of this, the length is 24.5 metres; the wingspan is 25.8 metres; it is the same thing. So why? Mr Speaker, would the Hon Minister explain to us whether it is a typographical error? When I saw it, I looked at the figure first; I really felt that it was in dollars, so I said, “well, if it is US$24.5 million, it goes up by US$2.5 million” and I said, “we could accommodate that”, only to notice that the currency is euros. It takes it to about US$35 million. It is unacceptable.
Mr Speaker, the Shell cost is unacceptable. Mr Speaker, interestingly, this Agreement was referred only recently to the Attorney-General and Minister for Justice for advice –– 21st June, 2011. It is here.
Mr Speaker, the Attorney-General and Minister for Justice proffered his opinion on it on 21st June, 2011. The same day, it went to the Hon Minister for Finance and Economic Planning and on the same day, he also okayed it and sent it to the Presidency –– the Office of the President –– on the same day, 21st June, 2011, we had Executive approval. Aba! Aba! What is this. Mr Speaker, Hon E. T. Mensah –– 19th March, 2008, even though the programme had been with us for about two months, said Government was applying indecent haste to the consideration of that matter. Two months. This one, one day.
From the Attorney-General’s Office to the Ministry of Finance and Economic Planning to the Presidency and all of them date-stamped 21st June, 2011. But I would not want to qualify it as “indecent haste” but the picture speaks for itself –– [Interruption.]
Mr John Tia Akologu: On a point of order.
Mr Speaker, I am rather surprised about the posture the Hon Minority Leader is taking in this issue. What he is implying now is like somebody did not do due diligence on certain things and acted hastily to do certain things. But this House, by our own Standing Orders, we also do similar things–– when we set aside Standing Orders to be able to carry out urgent business in this House.
So, I see nothing wrong if an Hon Minister will set aside any other thing and attend to an urgent issue and another Hon Minister will do the same thing, so that we get this nation going. I do not want us to tread that path, so that this House will be disabled in carrying out our work when we are to set aside the Standing Orders to deal with urgent matters.
So, please, the Hon Minority Leader should understand that in matters of urgency, there is action that should be taken and certain things might have to be overlooked, so that these actions are taken. So, I do not want this House to trap itself such that when we are setting aside our Standing Orders, people will criticise for not doing due diligence.
Mr Kyei-Mensah-Bonsu:
Mr Speaker, with respect to my Hon Colleague, I do not know what value he has added to what I have said.
Mr Speaker, the Attorney-General, in proffering his opinion, went through the Motions and suggested clause by clause –– reconsideration of so many parts. It is here. It is a three-page weighted opinion that the Attorney-General and Minister for Justice proffered.
Mr Speaker, I want to believe that what the Attorney-General did could not have been done in one hour. Mr Speaker, when I say that the letter goes to him that 21st June, 2011 and then he proffers this opinion as expressed here within one day, transmits same to the Hon Minister for Finance and Economic Planning who relates same to the Office of the President, same day, it is simply incredulous. Simply incredulous. Simply incredulous if he wants to understand this.
Mr Speaker, I believe there are matters that should concern us and this House, as was said by Hon Kunbuor on 19th March, 2008, we should be looking for value for money in this effort. Yes, we want the military to be equipped and properly, so within the limits of our abilities. But it cannot be said that a product that is advertised for US$22 million comes to Ghana and comes to €24.5 million. It cannot be comprehended by anybody –– and there is no re-configuration.
Mr Speaker, that is the seriousness of the matter. Mr Speaker, I would want to believe –– [Interruptions.]
Maj. (Dr) (Alhaji) Ahmed (retd):On a point of order.
Mr Speaker, the Hon Minority Leader is grossly misleading this House with reference to the pricing that he is quoting from the Internet. Mr Speaker, the price on the Internet refers to the Shell price of an aircraft. Mr Speaker, what we are dealing with is the operational price of the aircraft.
The aircraft that he has seen on the Internet, if he wants to buy that aircraft, I would want to advise him that he will have to request for the equipment that will make that aircraft operational at an extra cost.
He would have to request for radar –– different types of radar. He would have to request for all the things that will make that aircraft operational. Indeed, what we have here is the aircraft which will be delivered to Ghana and which is fully operational and will meet the specifications of our Air Force.
3.05 p.m.
Mr Kyei-Mensah-Bonsu:
Mr Speaker, this really is becoming a rather unproductive exercise. The Hon Deputy Minister for Water Resources, Works and Housing would often not listen to what we are saying and when we have finished, he takes us back. I said exactly that. That the –– we are talking about the cost of the Shell; yes, additional equipment would be certainly mounted. Those ones are covered –– additional equipment.
They come with additional cost; they have been specified. So what is he saying? I am not unmindful of that. Mr Speaker, I am referring to –– Mr First Deputy Speaker: The point that he is making is that, that aircraft, the price that you are quoting –– if I get him right –– that aircraft cannot fly, it is the Shell. But for us to make it operational, he has drawn a distinction between the operational price and the Shell price. Well, that is the point he is trying to make –– a difference between the operational price and the Shell price, whatever that means – – operational price and the Shell price.
Mr Kyei-Mensah-Bonsu: Mr Speaker, he is misleading everybody in this country, including himself. Mr Speaker, the price he has been quoting here is the FFP –– the Firm Fixed Price of the aircraft that could be airborne and travel anywhere. You require additional equipment for whatever purposes that you want it to serve. Those ones have been specified below.
If he had looked at them, he would furnish himself with these details. Mr Speaker, it is unfortunate that the Hon Deputy Minister for Water Resources, Works and Housing, himself, a retired Military man –– I know he is not retarded –– I know. He is retired but not retarded ––
[Interruption.] Lt. Gen. Smith (retd) –– rose ––
Mr Kyei-Mensah-Bonsu: This path that he is treading –– he is my Friend –– this path that he is charting for himself ––
Mr First Deputy Speaker: Hon Minister for Defence, do you have a point of order?
Lt. Gen. Smith (retd): Mr Speaker, what the Hon Mustapha said is quite right. We have operational cost and if Hon Members would remember, I did say that a technical team sits with the manufacturers and they negotiate. For instance, this particular aircraft, the delivery time, when you sign the contract, is 24 months and looking at our situation now, we do not have any transport aircraft in the system; we needed the aircraft urgently. These things have been going on for the past two and a half years. So there is the need to get these aircraft home –– and the negotiating team sat with them.
As I speak now, they have given us six to eight months to deliver the aircraft. All these things are taken into consideration. As he said, operational time; and that is what we had to negotiate. All the “free of charge” things you see there, we negotiated for them.
Mr Kyei-Mensah-Bonsu:
Mr Speaker, I do not think –– we agree with what the Hon Minister has said but the Hon Minister is not, by any stretch of imagination, telling us that alone –– the operational time of delivery –– is going to add close to about 10 million to one aircraft. The Hon Minister is not telling us that. Mr Speaker, clearly, there is a deficit of rationalisation. It cannot be rationalised in any way; it cannot.
In 2008, when the matter came up for debate in this House, people were perhaps, very unmindful of the fact that you do not pick an aircraft from the Shell, that you had to give yourself sometime for it to be manufactured. But I am not going there. I am only addressing the matter relating to the Shell cost. Certainly, it may come up somewhat.
But I am suggesting strongly to the Hon Minister, that he cannot justify that US$22 million would now translate to US$24.5 million , which would then take us to more than US$35 million. If we are able to make savings ––
Mr Speaker, I keep insisting, if there is a way of making savings and ploughing it back to the Military, so be it. How many helicopters cannot US$10 million or 11 million, which we believe is excess purchase for the military? I do not think that this is justifiable at all –– [Interruption.]
Alhaji Fuseini: On a point of order. Mr Speaker, the Hon Minority Leader keeps reminding us that in 2008 we said many things and we were very unmindful of the Shell price. Yes, he did not want to believe that people were unmindful of that.
That is very welcome because the Obeng Manu of late, once told us that “repeating mistakes has never been considered as experience”. So if he knows that we were unmindful, he knows we were unmindful, and he knew at that time that the Shell price would not let an aircraft fly, why does he want to repeat the mistakes of the past?
Let us make progress and approve of the facility so that we will learn that –– [Interruption] –– so that we would learn from the admonition of Obeng-Manu.
Mr Kyei-Mensah-Bonsu:
Mr Speaker, I think the issues have been raised and I do not want to repeat myself. If the Hon Minister, has a way of making savings to plough back to the military, to do more purchases for the military, please, he should ensure that it is done. But I do not think that seriously speaking, we can approve of this in this state.
Certainly, it is not the best; it is not the best. I do not want to go the path of E. T. Mensah who said that, “this is being done indecently to attract kickbacks for some people”. I do not want to go that path at all –– [Interruption.] Maj. (Dr) (Alhaji) Ahmed (retd)–– rose ––
Mr Kyei-Mensah-Bonsu: I do not want to go that path at all. No, I have not said it. I said, “I do not want to go there”
Mr First Deputy Speaker: Hon Deputy Minister, do you have a point of order?
Maj. (Dr) (Alhaji) Ahmed (retd): Mr Speaker, in 2003, there was a similar issue here from the Ministry of Defence with regard to the acquisition of four helicopters for the Ghana Armed Forces. A similar objection was raised and a search on the Internet showed that one helicopter from Russia would cost US$5 million.
But then, the Minister for Defence at the time took pains to explain to us that US$5 million was just the cost of the Shell price and therefore, for four helicopters, we paid US$44 million.
This House approved that loan for the Ghana Armed Forces to acquire four helicopters for use in the United Nations Peacekeeping Operations. It is the same scenario that the Hon Minority Leader is raising today.
So, Mr Speaker, I want to refer the Hon Minority Leader to that scenario and to take –– [Interruption] –– Thank you very much, Mr Speaker.
Mr First Deputy Speaker: Hon Minority Leader, you were winding up.
Mr Kyei-Mensah-Bonsu: Mr Speaker, yes; I will certainly wind up. Mr Speaker, this House, in 2003, never approved of any purchases of helicopters from Russia. We never. He should not pollute this air for us; we never did that. Mr Speaker, when Hon Members get up on the floor of this House, they are required to speak to the truth –– and he is a former military man, and he does that. It is not right. Mr Speaker, finally, as I said, the terms, in my view, are better than the one that we dealt with earlier.
This one, the interest, that is yieldable, plus 1.60 per annum, represents a better condition than what we did which involved four per cent per annum ––libor plus 4 per cent, which is what we raised. So this is a better arrangement except that the cost, in my view, there is much suspicion about how 22 million has become close to US$35 million.
That is unacceptable. Under no circumstances, can anybody justify that, in particular, when the aircraft is not being reconfigured.
So Mr Speaker, as I indicated earlier, I think the better approach would be to refer this back to the Committee, let them do better due diligence on it. I do not want to go on the path of the sole sourcing and so on. I do not want to go there. That is what has already been done. We are being told that we had to do down payment on or before 30th June, 2011.
Mr Speaker, we want to know from the Hon Minister whether this commitment has been done. If that commitment has already been done, he must explain how come it was done without the approval of this House. Mr Speaker, with that, I would want to thank you for indulging me.
3.15 p.m.
Mr First Deputy Speaker: Hon Minister, do you want to say something?
Lt. Gen. Smith (retd): Mr Speaker, in connection with the down payment, the Attorney-General’s Department (A-G) took a long time to respond to our request when we sent the purchasing agreement to it. We just received it. As I speak now, a representative from the company is here with the Air Force and my Legal Department incorporating all the comments that the A-G’s Department observed on the contract. They are going on right now –– [Interruption.] Mr Kyei-Mensah-Bonsu: Mr Speaker, what ought to be responded to is the down payment.
Mr First Deputy Speaker: They want to know –– if you look at the sales payment that has been attached as an Appendix, whether the money must be down payment before 30th of June and they want to hear whether the money has been paid or not yet paid.
Lt. Gen. Smith (retd): Mr Speaker, the A-G’s Department made the same observation; the team is here; we are correcting these things and discuss them with the Ministry of Finance and Economic Planning before the final agreement will be signed.
Mr Terkpeh: Mr Speaker, I just wish to inform the House that no payment has been made. Usually, in the course of negotiations, we make the banks and contractors aware of the fact that the ratification by Parliament is a very important element of what we do and therefore, we have notified them. I heard that payment could not be made.
Mr First Deputy Speaker: So have you asked for extension and if so, up to when?
Mr Terkpeh: Mr Speaker, as the Hon Minister indicated, we are in discussions with them and immediately this ratification is –– But Mr Speaker, while on my feet, I also wish to –– I was trying to catch your eye –– state that the opinion was not given on the same day. I think the Hon Minority Leader was looking at two different –– the stamp with the 21st is actually the stamp from the Ministry of Finance and Economic Planning which is the date on which the letter was received from the Ministry of Justice. If you read the first paragraph, it says that: “This is in response to your letter dated 1st June.”
So in actual fact, that explains the delay which the Hon Minister is talking about ––
Mr First Deputy Speaker: Hon Deputy Minister, it is not the date on the letter, it is the stamp, the date as being received, that is the point the Hon Member –– the point he is making is that we have 21st stamped on the document.
A letter can be dated on a particular day but it might not be received in a particular Ministry on that –– that is the point he is making. So you look at the stamp. So what are the dates with regard to the stamping?
Mr Terkpeh: Mr Speaker, what I am saying is that the letter from the Ministry of Justice is dated 21st June and given the distance between the Ministry of Finance and Economic Planning and the –– [Interruption.] No, I am making a point. The letter was received on the same day. However, the letter from the Ministry of Finance and Economic Planning to the Attorney-General is dated, as in the first paragraph, June 1.
So the opinion could not have been given on the same day. The notification was received the same day the letter was written but the opinion took effect from the 1st of June when this letter was written. That is what I wish to
–– [Interruption.]
Dr A. A. Osei: Mr Speaker, my good Friend, the Hon Deputy Minister is missing the point the Hon Minority Leader was making. The statement my Minority Leader said was that the letter from the Attorney-General (A-G) brought to the Ministry of Finance and Economic Planning is dated 21st June. If the Hon Deputy Minister is listening.
The issue is not when the Ministry first wrote to the Attorney-General. The fact is that the Ministry of Justice’s letter is dated 21st June; the Ministry of Finance and Economic Planning received it on 21st June and the letter from the President is dated 21st June. That is the point he was making.
[An Hon Member: When did the Ministry act on it.] Let us not go there. I think the point has been made. The less you try to respond to these issues the better for all of us to move ahead.
Mr First Deputy Speaker: Hon Members, that brings us to the end of the debate.