Airbus, has confessed to paying bribes in Ghana and other countries between 2011 and 2015 in a corruption investigation of its business deals dating back more than a decade.

UK court documents reviewed by iWatch Africa show that Europe’s largest plane maker has been fined 3 billion pounds for greasing the palms of public officials and fixers over a string of hidden payments as part of a pattern of worldwide corruption to facilitate the sales of its wares.

Below is a step by step guide on details of the scheme that cost the Ghanaian taxpayer 3.9 million euros.

1. The unnamed government Official 1 was a key decision-maker in respect of the government of Ghana aircraft orders between 2009 to 2015.

2. The unnamed Intermediary 5 is a UK national born in Ghana. He migrated to the United Kingdom as a young child and lost touch with his Ghanaian family until the late 1990s. He had no prior experience or expertise in the aerospace industry. A “CV” provided to Airbus in 2011 listed his employment before 2009 as an events manager for a local authority, director of a football merchandising company and facilities manager for an estate management business.

3. Intermediary 5 was assisted in his Airbus work by two other UK nationals: Intermediary 6 and Intermediary 7(both unnamed). The two have no aerospace experience or expertise. A CV that Intermediary 6 provided to Airbus in 2011 listed his 2009 employment as a UK television Actor and Film Director. Intermediary 7 was also a former UK television actor.

4. Contact between Airbus and the Government of Ghana about aircraft sales began in June 2009 following an expression of interest by the Government of Ghana. By August 2009, a senior Airbus employee reported that he was in touch with Government Official 1 and ‘his team’.

5. Airbus employee 16 (unnamed) was the Spanish salesperson responsible for handling all the Ghana transactions.

6. On December 7, 2009, a company of Intermediary 5 and 6 (named Company D) was incorporated in Ghana. The company’s profile submitted by Intermediary 6 to Airbus in June 2011 stated that Intermediary 5 and Intermediary 6 were its directors.  A company of the same name was incorporated in the UK in February 2010. Company D was the corporate vehicle through which Intermediary 5 and his associates provided services to Airbus.

7. Using another intermediary company (intermediary 8) Airbus paid €3,850,115 to Company D as consultation fees for the first two aircraft. It, however, failed to an extra €1,675,000, it promised to pay Company D for the third aircraft.

8. From 2009, Intermediary 5 and his associates worked on the sales to the Government of Ghana without any written consultant agreement. This included liaison with Government Official 1 regarding the potential Airbus C-295 sale.

9. In January 2011, Government Official 1, intermediaries 5 and 6 met in London. It was at this meeting that Airbus C-295 was agreed upon as the most suitable aircraft for the Government of Ghana’s needs. This was reported to Airbus.

10. By April 2011 Airbus employee 16 reported to his Airbus colleagues that the deal was close to being finalised. Airbus employee 16 then asked Intermediary 5 and Intermediary 6 to transmit a letter to Government Official 1 and explain a possible delay. Airbus employee 16 also asked them to secure meetings with the Ghanaian Ministry of Defence and Ministry of Finance.

11. Company D submitted a formal business partnership (BP) application in May 2011. On July 8, 2011, Intermediary 6 sent a senior Airbus employee 15 a ‘[Company D] update’. He reported that he had just returned from Ghana “having had very productive meetings with all parties.

12. Following the May 2011, BP application, Airbus commissioned an external due diligence report on Company D. The resulting report dated September 302011 identified Intermediary 5 as a shareholder and the possibility that he was a close relative of Government Official 1.

13. The external due diligence report raised concerns that there was a risk of nonconformity with the  Organisation for Economic Co-operation and Development (OECD) Convention, which set corporate governance benchmarks to reduce global corruption.

14. On 3 August 2011, Airbus’ Spanish Defence Subsidiary and the government of Ghana signed a purchase agreement for the sale of the two C-295 aircraft.

15. The consultant agreement between Intermediary 8 and Airbus was dated 20 March 2012 but said to be effective from January 1, 2010.

16. The agreement provided for a percentage commission fee of the net total amount received by Airbus under any commercial contract with the Government of Ghana for C-295 aircraft.

17. Between March 2012 and February 2014, Airbus paid Intermediary 8 a total of €3,909,756.85, a sum over the agreed commission amount as per the ECA declaration (€3,001,718.15).

18 . Between 10 April 2012 and 31 July 2013 Intermediary 8 paid €3,850,115 to Company D. Intermediary 8 retained about €60,000.

19. Between 2012 and 2013 Airbus attempted to arrange the sale of two further C295 aircraft to an Irish aircraft finance leasing company for onward use by the government of Ghana.

20. The first two military aircraft arrived in Ghana on November 17, 2011, and March 19, 2012

21. After the failure of this lease campaign, the government of Ghana decided to purchase a third C-295 direct from Airbus. This arrived on December 4, 2015, but company D did not benefit financially from it as Airbus refused to pay the promised kickback.

By Gideon Sarpong | iWatch Africa

The post A step by step account of how Airbus paid bribes to Ghanaian officials appeared first on iWatch Africa.

The aircrafts were procured from Dutch firm Airbus SE, which has been found guilty in shady deals in some countries across the globe.

Investigations by the Serious Fraud Office (SFO) in the UK led to the exposé.

Fines were imposed by the Royal Courts of Justice in its landmark judgement on Friday.

The SFO focused its investigations on not only Airbus but its
partners in South Korea, Indonesia, Sri Lanka, Malaysia, Taiwan, Ghana,
Colombia and Mexico.

“In brief, persons associated with Airbus, not exclusively its employees, offered very substantial sums of money by way of bribes to third parties in order to secure the purchase of aircraft, by civil airline companies, in counts 1to 4,” the approved judgement sighted by iWatch Africa indicated.

In the case of Ghana, it involved the government between July 1, 2011 and June 1, 2015.

“Between 2009 and 2015 an Airbus defence company engaged Intermediary
5, a close relative of a high ranking elected Ghanaian Government
official (Government Official 1) as its BP in respect of the proposed
sale of three military transport aircraft to the Government of Ghana.

“A number of Airbus employees knew that Intermediary 5 was a close
relative of Government Official 1, who was a key decision maker in
respect of the proposed sales.

“A number of Airbus employees made or promised success-based commission payments of approximately €5 million to Intermediary 5.

“False documentation was created by or with the agreement of Airbus employees in order to support and disguise these payments.

“The payments were intended to induce or reward “improper favour” by Government Official 1 towards Airbus.

“Payments were eventually stopped due to the arrangement failing the
due diligence processes required by the Liquidation Committee.”

While the first deal was under the presidency of the late John Evans Atta Mills, the second deal was under the presidency of John Dramani Mahama.

This will be a big blow to the former President Mahama who is seeking the mandate of Ghanaians in the December 2020 elections.

Over €29 million is expected to be received from fines against Airbus in the case involving Ghana.

The conduct is said to be a criminal violation of the International Traffic in Arms Regulations (ITAR) regulations.

• Read full judgement here

By Gideon Sarpong | iWatch Africa

(www.sanjaytaxpro.com)

The post Ex President Mills-Mahama gov’t cited in major corruption scandal involving Airbus appeared first on iWatch Africa.

Below are key findings of a Baseline study conducted as part of the TAC project.

Design by iWatch Africa

The post Key findings of the TAC Baseline Study [Infographic] appeared first on iWatch Africa.

The two-year inquiry found Jammeh was responsible for “shameless acts of brazen outright thievery at the Central Bank of The Gambia,” said Abubacarr Tambadou, the country’s minister of justice.

The Janneh Commision of Inquiry submitted its final report to President Adama Barrow on Friday, but the complete results of the investigation have not been made public.

Tambadou told reporters that the commission found Jammeh had stolen $304.7 million from the central bank during his 22 years in power.

Jammeh’s financial activities included “complex webs of intricate and sophisticated international financial transactions,” Tambadou said.

The commission said Jammeh claimed ownership of 281 properties in Gambia, including his palace in his hometown of Kanilai and a house in Potomac, Maryland.

Foreign governments are helping to track and recover Jammeh’s assets, Tambadou said without giving details.

Barrow had set up the official investigation, which is known as the Janneh Commission, after its chairman, Surahata Janneh, six months after Jammeh left for self-imposed exile in Equatorial Guinea in 2017. He remains there today.

The Organised Crime and Corruption Reporting Project (OCCRP) in a separate investigation of Jammeh’s corruption, also found that, Jammeh and his associates looted or misappropriated at least $975 million in public funds and illicit timber revenue.

Read Also: Akufo-Addo gov’t fails to deliver promised 65 earth dams two years after budget commitment

One local media outlet reported that that the investigation report might not be released for six months.

Gambia has also established an official inquiry into human rights abuses committed during Jammeh’s reign known as the Truth, Reconciliation and Reparations Commission. The investigation continues.

By Gideon Sarpong | iWatch Africa | Follow @gideonsarpong

The post Ex-Gambia president looted US$363 million public funds, owned 281 properties appeared first on iWatch Africa.

“Apart from the huge loss of revenue, the practice of diverting imports meant for neighbouring countries back into the country makes our domestic traders uncompetitive, as they find it difficult to sell goods because diverted non-Customed goods are sold at lower prices.

“This could drive such traders out of business, further deepening the unemployment problem with its consequent loss of tax revenue and negative effects on economic growth,” he said.

Mr. Ofori-Atta said this in a speech read on his behalf by Deputy Minister of Finance, Mr. Kweku Kwarteng at an occasion that marked International Customs Day in Accra under the theme ‘SMART Borders for Seamless Trade, Travel and Transport’.

This year’s celebration was observed on January 28, 2019 world-wide, and focused on ensuring an expansion in movement of people, goods and transport within the ECOWAS sub-region to achieve the needed economic growth. The celebration also underlined the role of Customs in ensuring international trade as well as facilitating orderly cross-border movement of goods and services.

Mr. Kwarteng urged the Customs Division of the Ghana Revenue Authority to seriously police tracking devices mounted on vehicles which convey imported transit-goods.

“To ensure smart borders for seamless trade, travel and transport, I urge all importers to comply with the laws on international trade. I also call on Customs officers to be true revenue professional whose loyalty is only to Ghana. (Ambien)

“I charge management of the Customs Division to come out with appropriate mechanisms and directives to enhance the movement of goods and services across borders,” he said.

The Commissioner-General for Ghana Revenue Authority, Mr. Emmanuel Kofi Nti, explained that the ‘SMART’ concept will provide guidelines in evaluating organisational performance, enhancing security, and adopting a data-enabled risk management system.

He added that the innovative approach will further boost business processes through the use of new technologies to achieve a solid global value chain.

Mr. Nti emphasised the need to explore the use of other IT solutions to improve and expedite border processing.

“The Customs Division, and for that matter GRA, will continue to cooperate with our neighbouring countries to ensure there is a seamless movement of people, goods and transport services within the ECOWAS sub-region to help in economic growth that will also result in the creation of employment opportunities and reduce poverty in the country.

“The SMART boarder concept, unlike our common understanding of it, will strengthen government’s aim to streamline trade, travel, and also counter migration threats across the country’s borders,” he stated.

Commissioner-Customs Division of the Ghana Revenue Authority, Mr. Isaac Crentsil, delivering a speech on behalf of the Secretary General of the World Customs Organisation (WCO), Mr. Kunio Mikuriya, said Customs has a dual task to facilitate safe movement and encourage trade, travel and transport – adding that it is essential for Customs to take the lead in consolidating and further amplifying the ongoing efforts at easing the flow of goods and people across borders, which will turn globalisation into a positive force.

Mr. Crentsil explained that the concept of SMART borders highlights Customs’ role in supporting the United Nations Agenda 2030 for Sustainable Development. Customs does this by creating a level playing field for all stakeholders through simplified, standardised and harmonised procedures.

“It ensures timely delivery of raw materials to industries, reduces unfair competition in local communities, and opens up opportunities for marginalised communities to access new markets,” he said.

The post Ghana lost GH¢2bn through collusion of Customs officers and transit traders in 2018 appeared first on iWatch Africa.

The country dropped three points from its 2016 score of 43 to 40 in 2017, and ranked 81 out of the total of 180 countries.

Cumulatively, Ghana has dropped eight points since 2016, the CPI which was released Wednesday, February 21 by Transparency International showed.

The CPI score indicates the perceived level of public sector corruption on a scale of zero (being highly corrupt) to 100 (very clean).

Executive Director of the Ghana Integrity Initiative, Linda Ofori- Kwafo, said Ghana’s poor score in 2017 is a reflection of inadequate investigations, prosecutions and sanctioning of corrupt officials.

Presenting the report, she said Ghana performed “not too good”.

“Since the CPI became comparable from the period 2012 to now, this is the worst performance that Ghana has had. This year, 2017CPI, we are saying Ghana’s performance from 2012 is the worst so far,” Mrs Ofori-Kwafo indicated.

She was however optimistic the situation could improve in the next three years by which time the various government interventions put in place to check corruption in the public sector would have started yielding results.

The newly created Office of the Special Prosecutor, the paperless port system and the Ghana Post digital addressing system were some of the initiatives she observed could help Ghana shore up its ranking

“When we are able to get the gains of the new initiatives; the paperless port, the digital addressing system and the powers of the Auditor General to do the disallowance and surcharging and then office of the special prosecutor that has come on board…if all these initiatives work very well for us, we’re hoping that in a year, two years, three years to come, we should see a rise in Ghana’s CPI,” she expressed.

Generally, the 2017 CPI showed majority of countries were making little or no progress in ending corruption.

It also showed journalists and activists in corrupt countries were risking their lives daily in an effort to speak out against corruption.

New Zealand and Denmark ranked highest with scores of 89 and 88 respectively while Syria, South Sudan and Somalia rank lowest with scores of 14, 12 and 9 respectively.

Read Also: iWatch Africa participates in a three-day workshop with Anti-Corruption Call Partners

Western Europe was identified as the best performing region with an average score of 66 with the worst performing regions being Sub-Saharan Africa (with an average score of 32) and Eastern Europe and Central Asia (with an average score of 34).

Report by Gideon Sarpong | iWatch Africa

The post Corruption: Ghana records worst performance in six years appeared first on iWatch Africa.