Ghana International Airlines (threads merged)
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Aviation in Ghana looks very when I pass through Accra , apart from GIA it seems , although I have never been a passenger on GIA so cannot comment. But local airlines seems to be doing ok, I see Air Ghana now have 3 B-1900D's wet leased from Solenta , so they look like they are moving forward, and they are a private airline , the others seem to be doing regular flights and the domestic market is growing. Anybody else out there got inside info on Ghana aviation?
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dirty deals on properties of former Ghana Airways
former Ghana Airways Liquidation
The Enquirer is in possession of documents that indicate the (former) Ghana Airways Limited, before its demise under the watch of the New Patriotic Party (NPP) government in 2004, had landed properties worth over¢106 Billion (USD $7,313,380). The then government liquidated Ghana Airways because they refused to raise USD $2million requested by the then management of Ghana Airways to turn around the national carrier.
The Kufuor government decided to liquidate the airline with a promise to establish a completely new and modern airline which was profitable. By the time they left office, the new airline they established was indebted to the tune of USD $55 million, with no assets to show for it, unlike Ghana Airways.
Surprisingly, the properties, which were both within Ghana and outside, were disposed off under such bizarre circumstances that it would be very difficult to trace some of the buyers today.
At the Airport Residential Area in Accra alone, the national airliner was in possession of plots that were valued at the time of the liquidation of the airline at USD $3,194,500.
The plots, according to the documents, include plots G2, G4, G6, H1, H3 and H5, which were valued at USD $1,684,500.
Within that same Airport Residential Area, Ghana Airways Limited possessed plot numbers G8, G10, H7, H9 and J2, which were also valued at USD $1,270,000 but were sold off.
In addition to that, the airliner had a club house at Cantonments in Accra, plot 26D, which was valued at USD $400,000 but was believed to have been sold at a ridiculous price far less than its value.
The houses at the Airport Residential Area and the Club House at Cantonments were valued to have generated rent of GH¢45,195,200 (¢451,952,000,000) Apart from that, the Ghana Airways Training School located at the Switchback Road in Accra, which was also valued at USD $779,250, was also sold under strange circumstances, in addition to four houses at Roman Ridge in Accra. The Roman Ridge houses were Nos. 1, 2, 3 and 4 and were sold for a total amount of USD $322,830.00 to some unknown persons.
Again, Ghana Airways Limited had four houses at Sakumono, near Tema, which were valued at USD $31,800.00. The houses were numbered E22, C22, C24 and C26. There was also another two-bedroom house at Dansoman, also in Accra, which was valued at USD $6,300.00 together with a bed-sitter valued at USD $2,800.00. The company also had properties at Kisseiman, also in Accra, which included bungalows, flats and uncompleted buildings and bare land valued at $1,355,000.00, while it had another property valued at USD $23,000.00 at La-Ko (Labone) in Accra.
In Takoradi and Kumasi, in the Western Region and the Ashanti Region respectively, the national airliner had two houses that were valued at USD $17,800.00 and USD $16,000.00 respectively.
Ghana Airways Limited also had properties at Sunyani in the Brong Ahafo Region and Tamale in the Northern Region as well, which were disposed of before the demise of the national carrier.
In Sunyani, it had two houses at the State Housing Area and SSNIT area, which were valued at USD $14,000.00 and USD $5,400.00 respectively.
As if the disposal of the properties in Ghana was not enough, those outside also suffered the same fate, as buildings in London in the United Kingdom and Freetown in Sierra Leon were also sold out.
In London, three buildings which were together valued at USD $973,600.00 situated at 72E London, 26St Christopher Close and 214 Wheatlands were all disposed of. In Freetown, two buildings valued at USD $248,400 located at 22 Charlotte Street and 48 Lower Pipeline were also disposed of.
Interestingly, most of the properties were in good shape before they were disposed of.
All that was needed to put some of them in top shape was simple renovation, but in a typical game of ‘giving a dog a bad name just to hang it’, the properties were sold off.
Ghana Airway Liquidation | General News 2010-05-14
The Enquirer is in possession of documents that indicate the (former) Ghana Airways Limited, before its demise under the watch of the New Patriotic Party (NPP) government in 2004, had landed properties worth over¢106 Billion (USD $7,313,380). The then government liquidated Ghana Airways because they refused to raise USD $2million requested by the then management of Ghana Airways to turn around the national carrier.
The Kufuor government decided to liquidate the airline with a promise to establish a completely new and modern airline which was profitable. By the time they left office, the new airline they established was indebted to the tune of USD $55 million, with no assets to show for it, unlike Ghana Airways.
Surprisingly, the properties, which were both within Ghana and outside, were disposed off under such bizarre circumstances that it would be very difficult to trace some of the buyers today.
At the Airport Residential Area in Accra alone, the national airliner was in possession of plots that were valued at the time of the liquidation of the airline at USD $3,194,500.
The plots, according to the documents, include plots G2, G4, G6, H1, H3 and H5, which were valued at USD $1,684,500.
Within that same Airport Residential Area, Ghana Airways Limited possessed plot numbers G8, G10, H7, H9 and J2, which were also valued at USD $1,270,000 but were sold off.
In addition to that, the airliner had a club house at Cantonments in Accra, plot 26D, which was valued at USD $400,000 but was believed to have been sold at a ridiculous price far less than its value.
The houses at the Airport Residential Area and the Club House at Cantonments were valued to have generated rent of GH¢45,195,200 (¢451,952,000,000) Apart from that, the Ghana Airways Training School located at the Switchback Road in Accra, which was also valued at USD $779,250, was also sold under strange circumstances, in addition to four houses at Roman Ridge in Accra. The Roman Ridge houses were Nos. 1, 2, 3 and 4 and were sold for a total amount of USD $322,830.00 to some unknown persons.
Again, Ghana Airways Limited had four houses at Sakumono, near Tema, which were valued at USD $31,800.00. The houses were numbered E22, C22, C24 and C26. There was also another two-bedroom house at Dansoman, also in Accra, which was valued at USD $6,300.00 together with a bed-sitter valued at USD $2,800.00. The company also had properties at Kisseiman, also in Accra, which included bungalows, flats and uncompleted buildings and bare land valued at $1,355,000.00, while it had another property valued at USD $23,000.00 at La-Ko (Labone) in Accra.
In Takoradi and Kumasi, in the Western Region and the Ashanti Region respectively, the national airliner had two houses that were valued at USD $17,800.00 and USD $16,000.00 respectively.
Ghana Airways Limited also had properties at Sunyani in the Brong Ahafo Region and Tamale in the Northern Region as well, which were disposed of before the demise of the national carrier.
In Sunyani, it had two houses at the State Housing Area and SSNIT area, which were valued at USD $14,000.00 and USD $5,400.00 respectively.
As if the disposal of the properties in Ghana was not enough, those outside also suffered the same fate, as buildings in London in the United Kingdom and Freetown in Sierra Leon were also sold out.
In London, three buildings which were together valued at USD $973,600.00 situated at 72E London, 26St Christopher Close and 214 Wheatlands were all disposed of. In Freetown, two buildings valued at USD $248,400 located at 22 Charlotte Street and 48 Lower Pipeline were also disposed of.
Interestingly, most of the properties were in good shape before they were disposed of.
All that was needed to put some of them in top shape was simple renovation, but in a typical game of ‘giving a dog a bad name just to hang it’, the properties were sold off.
Ghana Airway Liquidation | General News 2010-05-14
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GIA shutdown operations
GIA shutdown operations as stranded passengers stone officials
Reports reaching Asempa News indicate that workers of Ghana International Airlines (GIA) have been asked to go home until further notice.
This is the latest after a series of flights were cancelled owing to contractual agreements between GIA and its partners in the United Kingdom and the recent volcanic eruption in the Iceland.
The Ghana International Airlines has been in the news in recent times for the bad reasons – it has been grounded on a number of occasions, as well as its former officials been hauled to court for roles they played in managing the airline.
There was confusion at the offices of the GIA Friday morning when passengers of the airlines who were billed to travel this week had their flight postponed indefinitely.
Sources say passengers threw stones at officials of the airlines.
A staff of the GIA who spoke to Asempa News on condition of anonymity said they are yet to be told when to report to work.
Meanwhile, an insider tells Asempa News government has taken over the beleaguered airlines.
Moreover, the Managing Director of GIA Mrs. Gifty Annan-Myrs is said to have been summoned by the Minister of Transportation Mike Hammah over the latest development.
At the time of filing this report, the meeting was underway at the ministry.
GIA shutdown operations | General News 2010-05-14
Reports reaching Asempa News indicate that workers of Ghana International Airlines (GIA) have been asked to go home until further notice.
This is the latest after a series of flights were cancelled owing to contractual agreements between GIA and its partners in the United Kingdom and the recent volcanic eruption in the Iceland.
The Ghana International Airlines has been in the news in recent times for the bad reasons – it has been grounded on a number of occasions, as well as its former officials been hauled to court for roles they played in managing the airline.
There was confusion at the offices of the GIA Friday morning when passengers of the airlines who were billed to travel this week had their flight postponed indefinitely.
Sources say passengers threw stones at officials of the airlines.
A staff of the GIA who spoke to Asempa News on condition of anonymity said they are yet to be told when to report to work.
Meanwhile, an insider tells Asempa News government has taken over the beleaguered airlines.
Moreover, the Managing Director of GIA Mrs. Gifty Annan-Myrs is said to have been summoned by the Minister of Transportation Mike Hammah over the latest development.
At the time of filing this report, the meeting was underway at the ministry.
GIA shutdown operations | General News 2010-05-14
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More Airlines To Fly To Ghana
More Airlines To Fly To Ghana
Ghanaians will benefit from yet another choice of flight on the Accra – London route with the introduction of two more airlines on the route.
Virgin Atlantic will launch a new service between Heathrow and Accra, the capital of Ghana, from 24 May 2010. The airline plans to operate three services a week, subject to government approval, using an Airbus A340-300 aircraft with 240 seats onboard -34 Upper Class, 35 Premium Economy and 171 Economy. Virgin Atlantic is one of the world’s leading long-haul airlines, which has operated successfully globally. It is going to be the Official Airline Supplier to the England World Cup squad.
A statement in London by the Chief Executive of the Airline, Steve Ridgway noted “We are delighted that we are able to launch services to this fast growing and vibrant capital city with its historic links to Britain, thriving economy and growing oil and gas industry. Nearly 200,000 people fly between London and Accra each year and our new services will give them more choice and better value for money. He observed that Ghana has become the gateway to Africa and that there are more prospects by way of business and economic boom. “Ghana is a beacon for economic success in West Africa, and with Africa showing greater economic resilience and growth than other global regions, we are thrilled that this will be our fifth route in Africa. We look forward to offering the best possible service to travellers between Ghana, the UK and the United States,” he said.
He mentioned the success of the airline and noted that “the success of our three year strategy requires us to build on these foundations by focusing on the business and leisure markets and driving efficiency and effectiveness, adding that safety, security and consistent delivery of the basics are the foundation of everything we do.
The London-Accra route is currently served by British Airways and Ghana Airways. The new Virgin service will operate from Terminal 3. Another European Airline, Brussels Airlines is also preparing feverishly to launch its maiden flight from London to Accra in July this year.
More Airlines To Fly To Ghana | General News 2010-05-14
Ghanaians will benefit from yet another choice of flight on the Accra – London route with the introduction of two more airlines on the route.
Virgin Atlantic will launch a new service between Heathrow and Accra, the capital of Ghana, from 24 May 2010. The airline plans to operate three services a week, subject to government approval, using an Airbus A340-300 aircraft with 240 seats onboard -34 Upper Class, 35 Premium Economy and 171 Economy. Virgin Atlantic is one of the world’s leading long-haul airlines, which has operated successfully globally. It is going to be the Official Airline Supplier to the England World Cup squad.
A statement in London by the Chief Executive of the Airline, Steve Ridgway noted “We are delighted that we are able to launch services to this fast growing and vibrant capital city with its historic links to Britain, thriving economy and growing oil and gas industry. Nearly 200,000 people fly between London and Accra each year and our new services will give them more choice and better value for money. He observed that Ghana has become the gateway to Africa and that there are more prospects by way of business and economic boom. “Ghana is a beacon for economic success in West Africa, and with Africa showing greater economic resilience and growth than other global regions, we are thrilled that this will be our fifth route in Africa. We look forward to offering the best possible service to travellers between Ghana, the UK and the United States,” he said.
He mentioned the success of the airline and noted that “the success of our three year strategy requires us to build on these foundations by focusing on the business and leisure markets and driving efficiency and effectiveness, adding that safety, security and consistent delivery of the basics are the foundation of everything we do.
The London-Accra route is currently served by British Airways and Ghana Airways. The new Virgin service will operate from Terminal 3. Another European Airline, Brussels Airlines is also preparing feverishly to launch its maiden flight from London to Accra in July this year.
More Airlines To Fly To Ghana | General News 2010-05-14
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GIA crisis continues + instructions for travelers
Ghana International Airline has remained in lime light once as "Ghana Airways" and the second time as "Ghana International Airline". But unfortunately the reason for this popularity is not a positive one.
The airline was successful in selling the cheapest direct flights to Accra; however the financial condition of the airline kept weakening every passing day.
The airline firstly ceased operations duration the volcanic ash crises followed by yet again a suspension of flights in April and second week of May. That stirred up the possibilities of Ghana International going bankrupt. Thought, to date there are airlines and companies agreed to fund the airline, to clear off the huge debt but the division of shares between the airline and the governments is a major setback. In the battle field of the government and the airline, the customers of Ghana International Airlines are suffering severely. Those who have flown to Accra are not sure weather they will get the return flights as issued. Those on the way are unsure if their flights will operate or they will be going back home with heavy hearts, long face and unopened suitcases.
Yet, a point of question is for hundreds of tickets issued for June, July and December, in other words the summer vacations and the winter holidays. As these are the busiest season of the year, people have got their tickets issued well in advance. The dilemma of the whole situation is that the airline's own staff is hard to reach and therefore, there are nearly no set patterns or clear instructions for passengers suspended in the state of doubt and depression whether they will be able to fly? Or what should they do if their flights are cancelled! Most agents in this regard, are helpless and have no or little information and updates on the issue.
As rumors about Flights Suspension and liquidation of Ghana International Airlines are in circulation, immense disappointment and rising concerns in mind of Ghanaian customers is evident. We are trying our best to keep travelers posted with more updates, instructions and guide lines as received through IATA, agency and other sources.
Since Ghana International Airline has not been officially announced “grounded” or declared "Bankrupt" to date, the policy for refunds and cancellations will imply in accordance to status of flights at the time of departure/return.
Here are a few ways to handle the situation and be more informed to act in the right direction:
In case if the airline does not operate on given dates of departure/return, the traveler is eligible for refund.
Due to the existing ambiguity of the situation, incase if the traveler is demanding cancellation prior date of departure/return and prior any official declaration or announcement of airline’s suspension, the standard cancellation terms and conditions will apply. This means partial or no refund depending on the fare type.
For flights scheduled and issued for coming traveling seasons (June 2010 - Jan 2011), once the bankruptcy is filed and announced, or a clear verdict against the airline is announced, the passengers will be eligible for full refund.
Also to apply and claim refund, one can apply only within a certain period and not months after flights are announced to be suspended. Therefore immediate passenger action is mandatory.
For tickets booked & issued after May 13, 2010 ATOLL insurance will not cover for Ghana International flights. Hence people willing to travel with Ghana International should seek travel insurance on self-arrange basis. For more details and updates on flights to Ghana please call your travel agent.
GIA crises and instructions for travelers | General News 2010-05-20
The airline was successful in selling the cheapest direct flights to Accra; however the financial condition of the airline kept weakening every passing day.
The airline firstly ceased operations duration the volcanic ash crises followed by yet again a suspension of flights in April and second week of May. That stirred up the possibilities of Ghana International going bankrupt. Thought, to date there are airlines and companies agreed to fund the airline, to clear off the huge debt but the division of shares between the airline and the governments is a major setback. In the battle field of the government and the airline, the customers of Ghana International Airlines are suffering severely. Those who have flown to Accra are not sure weather they will get the return flights as issued. Those on the way are unsure if their flights will operate or they will be going back home with heavy hearts, long face and unopened suitcases.
Yet, a point of question is for hundreds of tickets issued for June, July and December, in other words the summer vacations and the winter holidays. As these are the busiest season of the year, people have got their tickets issued well in advance. The dilemma of the whole situation is that the airline's own staff is hard to reach and therefore, there are nearly no set patterns or clear instructions for passengers suspended in the state of doubt and depression whether they will be able to fly? Or what should they do if their flights are cancelled! Most agents in this regard, are helpless and have no or little information and updates on the issue.
As rumors about Flights Suspension and liquidation of Ghana International Airlines are in circulation, immense disappointment and rising concerns in mind of Ghanaian customers is evident. We are trying our best to keep travelers posted with more updates, instructions and guide lines as received through IATA, agency and other sources.
Since Ghana International Airline has not been officially announced “grounded” or declared "Bankrupt" to date, the policy for refunds and cancellations will imply in accordance to status of flights at the time of departure/return.
Here are a few ways to handle the situation and be more informed to act in the right direction:
In case if the airline does not operate on given dates of departure/return, the traveler is eligible for refund.
Due to the existing ambiguity of the situation, incase if the traveler is demanding cancellation prior date of departure/return and prior any official declaration or announcement of airline’s suspension, the standard cancellation terms and conditions will apply. This means partial or no refund depending on the fare type.
For flights scheduled and issued for coming traveling seasons (June 2010 - Jan 2011), once the bankruptcy is filed and announced, or a clear verdict against the airline is announced, the passengers will be eligible for full refund.
Also to apply and claim refund, one can apply only within a certain period and not months after flights are announced to be suspended. Therefore immediate passenger action is mandatory.
For tickets booked & issued after May 13, 2010 ATOLL insurance will not cover for Ghana International flights. Hence people willing to travel with Ghana International should seek travel insurance on self-arrange basis. For more details and updates on flights to Ghana please call your travel agent.
GIA crises and instructions for travelers | General News 2010-05-20
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Ghana International Airlines suspends operations
Ghana International Airlines (Accra) suspended operations on April 29, 2010 stranding passengers. Astraeus Airlines pulled its wet leased aircraft due to unpaid debts.
The Ghana Ministry of Transport is arranging to airlift Ghana International Airlines stranded passengers stranded at Accra, London Gatwick and Dusseldorf.
Ghana International Airlines suspends operations | Business News 2010-05-21
The Ghana Ministry of Transport is arranging to airlift Ghana International Airlines stranded passengers stranded at Accra, London Gatwick and Dusseldorf.
Ghana International Airlines suspends operations | Business News 2010-05-21
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GIA's $55m Own Goal
A dubious business plan, an otherwise profitable business opportunity, a corrupt and technically inept and bankrupt management, a dodgy financing package and a $55 million debt ridden Ghana International Airlines (GIA).
The Former Head of Maintenance and Engineering for Ghana International Airline (GIA), Mr. Len Hobbs has blown the whistle on the darkest secrets of GIA, giving the nation an inside view on why the airline was doomed before takeoff.
According to a four page document, written by Mr. Hobbs dated January 6, 2009, the US based Aviation Expert revealed that GIA was “guaranteed to fail by launching the company with a management team with extremely limited operational experience, dubious and questionable business and personal ethics, a business plan which was incoherent and incomplete”
Mr. Hobbs who has never hidden his dislike about the way and manner the airline was operated, said the entire GIA/USA approach to operating an airline was a “PONZI SCHEME” which was never intended to be the business plan the company would hopefully and eventually evolve into.
A Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors. Ponzi scheme organizers often solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk. In many Ponzi schemes, the fraudsters focus on attracting new money to make promised payments to earlier-stage investors and to use for personal expenses, instead of engaging in any legitimate investment activity.
Mr. Hobbs who still believes that GIA was and still is a profitable venture, noted that the so-called financiers whom the government of Ghana claimed at the time were going to finance the operations of the airline rather turned around to creamed off cash from the coffers of the company for their own use.
””The Sentry Group never had funding to launch an airline. They never put any money into the company and did not have access to funding. They left Ghana with more than $3M fraudulently diverted into their accounts” Mr.Hobbs revealed. The former Maintenance Engineer of Ghana International Airlines further observed that “The previous management group of GIA was an ethically corrupt, managerially inept, and operationally inexperienced. They took a potentially good (not so great) business opportunity and chose to operate a corrupt enterprise as opposed to a legitimate business. The result is obvious. The correction is optional”
Mr. Hobbs for example noted that the initial lease of aircraft from Ryan International Airlines was a “hand Shake” agreement which funneled $100, 000 per month to the five members of the GIA management team. The Government of Ghana provided most of the funding for the aircraft lease payments” he added.
Mr. Hobbs continued that “Each and every payment made to Ryan International, until the company terminated it’s relationship with GIA, regardless of the amount, included a percentage of commission paid to the management team” The Enquirer put these allegations and other questions to the management of Ryan International, in an email directed at the Chief Executive of Ryan International Airlines, Ron Ryan, but there was no response.
Hobbs, a Texas based aviation expert, noted that “the city of Houston, Texas USA, expressed interest in assisting GIA in providing a non-stop air service from Accra. They have voiced support to subsidize the operation for a limited time. This proposal was offered to the original management team of GIA and it was rejected.. because there was no inclusion of "Commissions” to be paid to GIA management.
There have been concerns that the $55M debt portfolio of Ghana International Airlines was selficted.
GIA's $55m Own Goal | General News 2010-05-24
The Former Head of Maintenance and Engineering for Ghana International Airline (GIA), Mr. Len Hobbs has blown the whistle on the darkest secrets of GIA, giving the nation an inside view on why the airline was doomed before takeoff.
According to a four page document, written by Mr. Hobbs dated January 6, 2009, the US based Aviation Expert revealed that GIA was “guaranteed to fail by launching the company with a management team with extremely limited operational experience, dubious and questionable business and personal ethics, a business plan which was incoherent and incomplete”
Mr. Hobbs who has never hidden his dislike about the way and manner the airline was operated, said the entire GIA/USA approach to operating an airline was a “PONZI SCHEME” which was never intended to be the business plan the company would hopefully and eventually evolve into.
A Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors. Ponzi scheme organizers often solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or no risk. In many Ponzi schemes, the fraudsters focus on attracting new money to make promised payments to earlier-stage investors and to use for personal expenses, instead of engaging in any legitimate investment activity.
Mr. Hobbs who still believes that GIA was and still is a profitable venture, noted that the so-called financiers whom the government of Ghana claimed at the time were going to finance the operations of the airline rather turned around to creamed off cash from the coffers of the company for their own use.
””The Sentry Group never had funding to launch an airline. They never put any money into the company and did not have access to funding. They left Ghana with more than $3M fraudulently diverted into their accounts” Mr.Hobbs revealed. The former Maintenance Engineer of Ghana International Airlines further observed that “The previous management group of GIA was an ethically corrupt, managerially inept, and operationally inexperienced. They took a potentially good (not so great) business opportunity and chose to operate a corrupt enterprise as opposed to a legitimate business. The result is obvious. The correction is optional”
Mr. Hobbs for example noted that the initial lease of aircraft from Ryan International Airlines was a “hand Shake” agreement which funneled $100, 000 per month to the five members of the GIA management team. The Government of Ghana provided most of the funding for the aircraft lease payments” he added.
Mr. Hobbs continued that “Each and every payment made to Ryan International, until the company terminated it’s relationship with GIA, regardless of the amount, included a percentage of commission paid to the management team” The Enquirer put these allegations and other questions to the management of Ryan International, in an email directed at the Chief Executive of Ryan International Airlines, Ron Ryan, but there was no response.
Hobbs, a Texas based aviation expert, noted that “the city of Houston, Texas USA, expressed interest in assisting GIA in providing a non-stop air service from Accra. They have voiced support to subsidize the operation for a limited time. This proposal was offered to the original management team of GIA and it was rejected.. because there was no inclusion of "Commissions” to be paid to GIA management.
There have been concerns that the $55M debt portfolio of Ghana International Airlines was selficted.
GIA's $55m Own Goal | General News 2010-05-24
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Ghana International Airlines Phases Out
Ghana International Airlines (GIA) is gradually collapsing as government has decided not to fund its operations.
The airline, established in 2005, has not paid the salaries of its staff for about three or four months as a result of the support freeze. And what is puzzling is the fact that Government has refused to allow interested investors to assist the airline.
At a press conference on Friday in Accra, Sylvia Lawson, Revenue Accounting Manager of the airline, said Government’s release of funding to GIA in tranches has affected the operations of the airline since its inception.
GIA, she noted, initially requested for $55 million as part of the original business start-up, but Government provided $4.9 million while the minority shareholders provided $2.1 million. Funds invested into the business stood at $7 million leaving a wide difference of $48 million.
“There has been a significant cash flow challenge ever since and as a result of the manner in which the support to the airline is released; we have found it very difficult to execute the company’s business plan,” she stressed.
She explained that the previous government invested an amount of $46.7 million between January 2006 and December 2008, noting that $16 million was obtained from the Social Security & National Insurance Trust (SSNIT).
In the case of the incumbent administration, she said it provided $16.6 million between January 2009 and April 2010, stressing that Government has provided a total amount of $63.3 million to GIA.
“Government knows that it does not have the means readily to support the airline but it will also not allow other people who are interested in investing in the company to do so.
We just don’t understand the execution of this deliberate plan to wind up GIA,” another aggrieved senior staff person, who pleaded anonymity, told CITY & BUSINESS GUIDE in an interview. Since May 8, 2010, the airline has had no flights.
He also revealed that a chunk of GIA’s market was in the Ghanaian community resident in the UK and therefore such a development did not augur well for the airline. “We have suspended sales of our tickets because we could not serve passengers who we booked earlier.”
In addition to the above-mentioned problems, GIA has had to pay GH¢120,000 in hotel bills for affected passengers. The airline has been served with an ejection notice which expired on June 30. It is also contemplating the payment of some $62,000 due to a problem it had with passengers recently.
“Investors cannot take equity stake in GIA because of the shareholder disputes with Government which owns 70 percent shares. What Government needs to do to solve the shareholder impasse is to convert its loans into equity and offload part of it to any willing investor so that it can recover every pesewa of the taxpayer’s money.”
The airline has been victim to a series of seizures from aircraft owners and fuel providers to whom huge amounts of money were owned.
Ghana International Airlines Phases Out | General News 2010-07-13
The airline, established in 2005, has not paid the salaries of its staff for about three or four months as a result of the support freeze. And what is puzzling is the fact that Government has refused to allow interested investors to assist the airline.
At a press conference on Friday in Accra, Sylvia Lawson, Revenue Accounting Manager of the airline, said Government’s release of funding to GIA in tranches has affected the operations of the airline since its inception.
GIA, she noted, initially requested for $55 million as part of the original business start-up, but Government provided $4.9 million while the minority shareholders provided $2.1 million. Funds invested into the business stood at $7 million leaving a wide difference of $48 million.
“There has been a significant cash flow challenge ever since and as a result of the manner in which the support to the airline is released; we have found it very difficult to execute the company’s business plan,” she stressed.
She explained that the previous government invested an amount of $46.7 million between January 2006 and December 2008, noting that $16 million was obtained from the Social Security & National Insurance Trust (SSNIT).
In the case of the incumbent administration, she said it provided $16.6 million between January 2009 and April 2010, stressing that Government has provided a total amount of $63.3 million to GIA.
“Government knows that it does not have the means readily to support the airline but it will also not allow other people who are interested in investing in the company to do so.
We just don’t understand the execution of this deliberate plan to wind up GIA,” another aggrieved senior staff person, who pleaded anonymity, told CITY & BUSINESS GUIDE in an interview. Since May 8, 2010, the airline has had no flights.
He also revealed that a chunk of GIA’s market was in the Ghanaian community resident in the UK and therefore such a development did not augur well for the airline. “We have suspended sales of our tickets because we could not serve passengers who we booked earlier.”
In addition to the above-mentioned problems, GIA has had to pay GH¢120,000 in hotel bills for affected passengers. The airline has been served with an ejection notice which expired on June 30. It is also contemplating the payment of some $62,000 due to a problem it had with passengers recently.
“Investors cannot take equity stake in GIA because of the shareholder disputes with Government which owns 70 percent shares. What Government needs to do to solve the shareholder impasse is to convert its loans into equity and offload part of it to any willing investor so that it can recover every pesewa of the taxpayer’s money.”
The airline has been victim to a series of seizures from aircraft owners and fuel providers to whom huge amounts of money were owned.
Ghana International Airlines Phases Out | General News 2010-07-13
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Shocking revelation; less than GH¢ 200 in GIA’s account
Officials of Ghana International Airlines (GIA), say they have gone bankrupt with less than Two Hundred Ghana Cedis in the company’s account.
The woes of the once thriving Airliner continue to deepen since its operations were suspended by government due to its inability to fly passengers.
An alleged embezzlement of ticket sales by management was blamed for the suspension.
In an interview with Citi News on Thursday July 15, the Head of Cost and Accounting at GIA Mr. John Oduro said GIA employees have not been paid since April 2010.
‘‘What has really worsened our situation has been the withdrawal of government support for the company on May 7, 2010. We had our last flight on May 7 and since then, the Aircraft has been withdrawn because government could not commit itself to the extension of the work-lift arrangement we had with Astraus Air’’ he said.
Mr. Oduro revealed that due to the absence of the Aircraft, the company has about 9,000 passengers stranded in Ghana, and several others in London and New York. He said GIA had spent close to 120,000 dollars hotel bills for the stranded passengers in Accra alone, with expenses on those in New York and London yet to be known.
‘‘Sadly, in the face of all these challenges, both Ministers of Transport and his Deputy went on air and indicated that we were still operating. Those are complete lies. They also said they were investigating some allegations of embezzlement of ticket funds. The manipulations and distortions of the fact out there are quite enormous and that’s why we have decided to clarify things’’.
Mr. John Oduro said GIA’s financial burden was mainly as a result of the type of business module it was operating, and until changes were made, the company cannot be productive.
He was disappointed that government had decided to withdraw its support to the airliner instead of exploring alternative options to deal with their plight. He said it would be a total waste of the tax payers’ money for a company that owes the nation close to 64 million dollars to collapse.
“Investors have come to revive the company but government is not willing and is gradually running down the airline. ‘‘As we speak now, the company has less than 200 Ghana cedis in its account. How can you tell us that such a business is operating? We also want them to pay us our outstanding salaries.” He said.
Some GIA staff who spoke to Citi News said the company was virtually on the threshold of a final collapse since its telephone lines have been disconnected with the internet service soon to follow suit.
They said GIA’s office in Accra may soon be closed since management is unable to pay rental fees.
Shocking revelation; less than GH¢ 200 in GIA?s account | General News 2010-07-15
The woes of the once thriving Airliner continue to deepen since its operations were suspended by government due to its inability to fly passengers.
An alleged embezzlement of ticket sales by management was blamed for the suspension.
In an interview with Citi News on Thursday July 15, the Head of Cost and Accounting at GIA Mr. John Oduro said GIA employees have not been paid since April 2010.
‘‘What has really worsened our situation has been the withdrawal of government support for the company on May 7, 2010. We had our last flight on May 7 and since then, the Aircraft has been withdrawn because government could not commit itself to the extension of the work-lift arrangement we had with Astraus Air’’ he said.
Mr. Oduro revealed that due to the absence of the Aircraft, the company has about 9,000 passengers stranded in Ghana, and several others in London and New York. He said GIA had spent close to 120,000 dollars hotel bills for the stranded passengers in Accra alone, with expenses on those in New York and London yet to be known.
‘‘Sadly, in the face of all these challenges, both Ministers of Transport and his Deputy went on air and indicated that we were still operating. Those are complete lies. They also said they were investigating some allegations of embezzlement of ticket funds. The manipulations and distortions of the fact out there are quite enormous and that’s why we have decided to clarify things’’.
Mr. John Oduro said GIA’s financial burden was mainly as a result of the type of business module it was operating, and until changes were made, the company cannot be productive.
He was disappointed that government had decided to withdraw its support to the airliner instead of exploring alternative options to deal with their plight. He said it would be a total waste of the tax payers’ money for a company that owes the nation close to 64 million dollars to collapse.
“Investors have come to revive the company but government is not willing and is gradually running down the airline. ‘‘As we speak now, the company has less than 200 Ghana cedis in its account. How can you tell us that such a business is operating? We also want them to pay us our outstanding salaries.” He said.
Some GIA staff who spoke to Citi News said the company was virtually on the threshold of a final collapse since its telephone lines have been disconnected with the internet service soon to follow suit.
They said GIA’s office in Accra may soon be closed since management is unable to pay rental fees.
Shocking revelation; less than GH¢ 200 in GIA?s account | General News 2010-07-15
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Court dismisses applications by former Minister of Transport Richard Anane & others
Accra, July 16, GNA - The Financial Court, a division of the High Court, on Friday dismissed an application filed by three of the accused persons in the Ghana International Airline (GIA) saga requesting for relevant documents to the Supreme Court (SC) for interpretation.
The Court presided over by Mr Justice Bright Mensah upheld the submissions of Ms Gertrude Aikins, Director of Public Prosecution (DPP) that the case was not a constitutional matter, which had to be sent to the SC for interpretation.
Mr Acquah Sampson, counsel for Dr Richard Winfred Anane, Former Minister of Transport; Mr Egbert Faibille Jnr. Counsel for Kwadwo Okyere Mpiani, Former Chief of Staff and Minister of Presidential Affairs and Mr Sam Okudjeto, counsel for Professor George Gyan-Baffour, Former Deputy Minister of Finance and Economic Planning, filed three applications asking the court to order the prosecution to make available all pre-trial disclosures to aid the accused persons to defend themselves.
In addition, an order that the Attorney General should provide all the documents and witnesses it intended to call in the trial made accessible to the defence.
They also requested that the matter should be referred to the SC for interpretation because it was a constitutional matter.
Mr Justice Mensah said in his view it was not every issue that should be sent to the SC for interpretation and the lower court was not obliged to state the case before the SC.
He said sections of Act 30 which governed summary trials were not in conflict with the 1992 Constitution.
Mr Justice Mensah explained that summary trials were meant to be expeditious and reduced delays as compared to trial by indictment.
The State had opposed the application on the grounds that sections of the criminal procedure code did not allow accused persons standing summary trial to have access to such documents.
The accused persons together with Dr Anthony Akoto Osei, Former Minister of State at the Ministry of Finance and Economic Planning and Sammy Crabbe, Former Greater Accra Regional Chairman of New Patriotic Party (NPP), are facing 22 counts of causing financial loss to the State.
Others are defrauding by false pretences, conspiracy to deceive public officers, deceit of public officer, misappropriation of public funds, opening an offshore account without authorisation from Bank of Ghana (BoG), conspiracy to steal and stealing.
They have pleaded not guilty and the court had granted them self-recognisance bail.
The facts as presented by Ms Aikins are that Dr Anane misrepresented facts on GIAL, which was then not in existence, to Cabinet of Former President John Agyekum Kufuor and misled government to buy shares of a fraudulent company.
Dr Anane's action subsequently led to the liquidation of Ghana Airways.
The DPP said Dr Anane declared that four companies had expressed interest in Ghana Airways and later presented a letter of intent, which was signed between Government of Ghana and GIAL to form a new company called New Ghana Airways (NGA), although GIAL was at that time not in existence.
She said the memorandum Dr Anane presented to Cabinet for signing was dated September 9, 2004 but GIAL was not in existence at that date.
Ms Aikins said that although PriceWaterhouse Coopers had rated NGA, which had signed an agreement with government to form GIAL, third after KLM and Ghanair, two other companies, which had submitted their bids to take over Ghana Airways, however, NGA won the bid.
She said Mpiani, on June 2, 2005, wrote to the Chairman of Government Taskforce on Ghana Airways Limited authorising the taskforce to take all necessary steps to put the airline into formal liquidation.
The DPP said Dr Akoto-Osei signed a loan agreement, committing the government to a financial obligation of paying GH¢15 million from the Social Security and National Insurance Trust (SSNIT) to GIAL.
She said Dr Akoto-Osei gave the amount from SSNIT to GIAL as a loan, without Parliamentary approval and at a time when the minority shareholders of the Airline had abandoned the company by withdrawing 1.9 million dollars from GIAL account without the consent of majority shareholder, Government of Ghana.
Ms Aikins said Mpiani authorised the release of six million dollars to GIAL in September 2008, without Parliamentary approval.
According to the prosecution, Crabbe, who represented the minority shareholders in the company, on June 27, 2005 withdrew 1.9 million dollars from the Government of Ghana's account, without approval from the government (the majority shareholder).
Court dismisses applications by Anane and others | General News 2010-07-16
The Court presided over by Mr Justice Bright Mensah upheld the submissions of Ms Gertrude Aikins, Director of Public Prosecution (DPP) that the case was not a constitutional matter, which had to be sent to the SC for interpretation.
Mr Acquah Sampson, counsel for Dr Richard Winfred Anane, Former Minister of Transport; Mr Egbert Faibille Jnr. Counsel for Kwadwo Okyere Mpiani, Former Chief of Staff and Minister of Presidential Affairs and Mr Sam Okudjeto, counsel for Professor George Gyan-Baffour, Former Deputy Minister of Finance and Economic Planning, filed three applications asking the court to order the prosecution to make available all pre-trial disclosures to aid the accused persons to defend themselves.
In addition, an order that the Attorney General should provide all the documents and witnesses it intended to call in the trial made accessible to the defence.
They also requested that the matter should be referred to the SC for interpretation because it was a constitutional matter.
Mr Justice Mensah said in his view it was not every issue that should be sent to the SC for interpretation and the lower court was not obliged to state the case before the SC.
He said sections of Act 30 which governed summary trials were not in conflict with the 1992 Constitution.
Mr Justice Mensah explained that summary trials were meant to be expeditious and reduced delays as compared to trial by indictment.
The State had opposed the application on the grounds that sections of the criminal procedure code did not allow accused persons standing summary trial to have access to such documents.
The accused persons together with Dr Anthony Akoto Osei, Former Minister of State at the Ministry of Finance and Economic Planning and Sammy Crabbe, Former Greater Accra Regional Chairman of New Patriotic Party (NPP), are facing 22 counts of causing financial loss to the State.
Others are defrauding by false pretences, conspiracy to deceive public officers, deceit of public officer, misappropriation of public funds, opening an offshore account without authorisation from Bank of Ghana (BoG), conspiracy to steal and stealing.
They have pleaded not guilty and the court had granted them self-recognisance bail.
The facts as presented by Ms Aikins are that Dr Anane misrepresented facts on GIAL, which was then not in existence, to Cabinet of Former President John Agyekum Kufuor and misled government to buy shares of a fraudulent company.
Dr Anane's action subsequently led to the liquidation of Ghana Airways.
The DPP said Dr Anane declared that four companies had expressed interest in Ghana Airways and later presented a letter of intent, which was signed between Government of Ghana and GIAL to form a new company called New Ghana Airways (NGA), although GIAL was at that time not in existence.
She said the memorandum Dr Anane presented to Cabinet for signing was dated September 9, 2004 but GIAL was not in existence at that date.
Ms Aikins said that although PriceWaterhouse Coopers had rated NGA, which had signed an agreement with government to form GIAL, third after KLM and Ghanair, two other companies, which had submitted their bids to take over Ghana Airways, however, NGA won the bid.
She said Mpiani, on June 2, 2005, wrote to the Chairman of Government Taskforce on Ghana Airways Limited authorising the taskforce to take all necessary steps to put the airline into formal liquidation.
The DPP said Dr Akoto-Osei signed a loan agreement, committing the government to a financial obligation of paying GH¢15 million from the Social Security and National Insurance Trust (SSNIT) to GIAL.
She said Dr Akoto-Osei gave the amount from SSNIT to GIAL as a loan, without Parliamentary approval and at a time when the minority shareholders of the Airline had abandoned the company by withdrawing 1.9 million dollars from GIAL account without the consent of majority shareholder, Government of Ghana.
Ms Aikins said Mpiani authorised the release of six million dollars to GIAL in September 2008, without Parliamentary approval.
According to the prosecution, Crabbe, who represented the minority shareholders in the company, on June 27, 2005 withdrew 1.9 million dollars from the Government of Ghana's account, without approval from the government (the majority shareholder).
Court dismisses applications by Anane and others | General News 2010-07-16
Too mean to buy a long personal title
From Ghana Business News:-
Ghana International Airline passengers to demonstrate
Page last updated at Monday, February 14, 2011 10:10 AM
Tension is fast rising in London among disappointed passengers of the defunct Ghana International Airlines (GIA) over what they perceive as disappointment by the airline.
A huge number of disappointed passen*gers who were unable to fly to Accra from London due to the unexpected closure of the airline in the summer of last year are plan*ning a massive demonstration in London to demand a refund of their fares and possible compensation.
Investigations in London revealed that more than 800 passengers were affected by the airline’s closure.
They have organised themselves and planned a massive demonstration in London against the “Ghana government whose deci*sion has put us in this plight and also draw the world’s attention to the problem”.
...
Page last updated at Monday, February 14, 2011 10:10 AM
Tension is fast rising in London among disappointed passengers of the defunct Ghana International Airlines (GIA) over what they perceive as disappointment by the airline.
A huge number of disappointed passen*gers who were unable to fly to Accra from London due to the unexpected closure of the airline in the summer of last year are plan*ning a massive demonstration in London to demand a refund of their fares and possible compensation.
Investigations in London revealed that more than 800 passengers were affected by the airline’s closure.
They have organised themselves and planned a massive demonstration in London against the “Ghana government whose deci*sion has put us in this plight and also draw the world’s attention to the problem”.
...
