Airbus bribery scandal: Akufo-Addo refers case to Special Prosecutor

Donald Ato Dapatem Politics Feb - 03 - 2020 , 04:58

The Office of the President has formally petitioned the Office of the Special Prosecutor, informing it about allegations of bribery in the acquisition of three military aircraft by the government between 2009 and 2015.

“We have officially written to the Office of the Special Prosecutor this morning, drawing his attention to the allegations. As a constitutionally mandated body, we expect him to take it up,” a source at the Presidency told the Daily Graphic in Accra yesterday.

Airbus, the European aircraft manufacturer, is alleged to have paid bribes in Ghana when it sold the three military aircraft.

The aerospace multinational admitted hiring the brother of a top elected Ghanaian official as its consultant for the pitch to sell the aircraft to the country.

Again, Airbus confessed paying the said consultant through a third party when its Compliance Unit raised red flags about the close relationship between the consultant and the top elected official, who was a key decision maker in the purchase of the military aircraft.

President Nana Addo Dankwa Akufo- Addo last Sunday evening announced that he had referred the judgment of a court in the United Kingdom (UK), in which the European multinational aerospace corporation had been fined $3.9 billion for the payment of bribes to secure deals in several countries, including Ghana, to the Special Prosecutor.

The judgment was issued last Friday by the Crown Court at Southwark, UK, in a case between the director of the Serious Fraud Office (SFO) of the UK and Airbus SE.

A statement signed by the Director of Communications at the Presidency, Mr Eugene Arhin, said facts in the case between 2009 and 2015 indicated that "a number of Airbus employees made or promised success-based commission payments of approximately €5 million to Intermediary 5", who is said to be "a close relative of a high ranking elected Ghanaian government official (Government Official 1)".

It quoted the judgment, which stated: "Government Official 1 was a key decision maker in respect of government of Ghana aircraft orders."

NDC

Last Sunday when the issue went viral on both social and traditional media, the National Democratic Congress (NDC) issued a statement, signed by a former Attorney-General and Minister of Justice during the Mahama administration, Ms Marietta Brew Appiah-Opong, denying any wrongdoing.

“The reports alleging that Airbus SE paid bribes during the administration of President John Evans Atta Mills and John Dramani Mahama were false, misleading and did not reflect the approved judgment.

“Indeed, the approved judgment of the Crown Court of Southwark approving the DPA between Airbus and the UK Serious Fraud Office does not allege that any payment was made by Airbus to any Ghanaian government official,” it added.

The New Patriotic Party (NPP) has also reacted to the Airbus bribery allegation and asked former President John Dramani Mahama to speak to the issue (refer to story on page 16).

Improper favour

Referring to the judgement, the statement from the Director of Communications at the Presidency added that the payments to Intermediary 5 by officials of Airbus SE were thus "intended to induce or reward improper favour by Government Official 1" over the purchase of three C-295 military transport aircraft. Indeed, out of the €5 million promised Intermediary 5, €3.85 million was paid between March 2012 and February 2014”.

“President Akufo-Addo has taken notice of the judgement and its implications and has referred it to the Office of the Special Prosecutor to collaborate with its UK counterpart to conduct a prompt inquiry to determine the complicity or otherwise of any Ghanaian government official, past or present, involved in the said scandal and to take the necessary legal action against any such official, as required by Ghanaian law,”

Background

According to US and UK court documents, Airbus had been under investigations by the US Department of Justice (DOJ), the SFO of the UK and the Parquet National Financier (PNF) of France.

This came to light after nearly four years of investigations by authorities in the US, the UK and France into the business operations of Airbus, which culminated in the company being fined $3.9 billion for its corrupt practices in Ghana, Malaysia, Sri Lanka, Indonesia and Taiwan within the same period.

Fine

The $3.9-billion fine imposed on Airbus is one of the largest in the world against a corporate body (refer to yesterday’s edition of the Daily Graphic).

The US, the UK and France authorities imposed the fine in a deferred prosecution agreement (DPA), which is essentially a corporate plea bargain that helped the company to avoid criminal prosecution.

However, prosecutors from the three countries said employees of the company found culpable could face prosecution.

Airbus was found guilty of failing to prevent its employees and others associated with the company from bribing officials during deals for the purchase of its aircraft and other products and also for breaking US export regulations with regard to its International Traffic in Arms Regulations (ITAR).

The DPA was approved in separate judgments by the Queen’s Bench Division of the UK Crown Court at Southwark and the US District Court for the District of Columbia last Friday.

Ghana

Court documents published by the DOJ of the US and the SFO of the UK revealed how Airbus employed different tactics to bribe officials in many countries, including Ghana, in order to secure lucrative contracts.

In the case of Ghana, Airbus allegedly paid more than €3 million through a third party.

“In fact, Airbus and its vendors had paid, offered or agreed to pay political contributions, fees or commissions in connection with these sales in the amount of at least €3,596,523,” the facts, as presented by the DOJ to the District Court in the USA, stated.

According to the DOJ’s facts, a high ranking elected official, which the document mentioned as “Individual 1” (who was in office from 2009 to 2016), made direct contact with the Airbus management about the purchase of the aircraft a few months after he took office.

“Individual 1 was influential in having the government of Ghana approve aircraft purchases and Individual 1 contacted Airbus senior executives during the government approval process. In 2011, during Individual 1’s time in office, the Ghanaian Parliament approved the purchase of C-295 aircraft,” the facts said.

As part of the sale of the aircraft to Ghana, the DOJ said, Airbus contracted the brother of “Individual 1”, who was named as “Consultant 4”, to act as the third-party agent of the company during the sale of the aircraft.

“Airbus purposefully sought to engage Consultant 4 due to his closeness to Individual 1, and the Airbus management included Consultant 4 in its communications with Individual 1. Airbus used Consultant 4 as a conduit for messages intended for Individual 1. Consultant 4 traded on his access to Individual 1,” the DOJ said.

Airbus reaction

In an official reaction posted on its website, Airbus stated that the DPA reached with the authorities in the US, the UK and France concluded all investigations into its activities by the three countries.

According to the company, the outcome was as a result of the “reporting, cooperation and new compliance standards at Airbus” and added that it was “determined to conduct its businesses with integrity”.

The Chief Executive Officer (CEO) of Airbus, Mr Guillaume Faury, said the company had learnt many lessons from the incident.