Airbus scandal: OSP identifies Mahama as GO1 but cleared of any wrongdoing

The Office of the Special Prosecutor (OSP) has identified former President John Dramani Mahama as “Government Official 1” in the Airbus scandal. Speaking at a press conference in Accra on Thursday, August 8, Special Prosecutor Kissi Agyebeng also confirmed that Samuel Mahama, the former president’s brother, was identified as “Intermediary 5.”

The OSP provided a brief overview of its investigation, confirming that John Dramani Mahama was identified as “Government Official 1” by a UK court and “Individual 1” by a US court, though he played no direct role in the acquisition process. “The OSP confirms the identity of the following individuals. The individual described as ‘Government Official 1’ by the UK court and ‘Individual 1’ by the US court is John Dramani Mahama. He is a citizen of Ghana and was the Vice-President of Ghana from January 7, 2009, to July 24, 2012,” the OSP stated.

Former Special Prosecutor Martin Amidu began investigations in 2020 into an agreement made during Mahama’s administration to procure two military transport aircraft from Airbus for the Ghana Armed Forces. Both John Dramani Mahama and his brother Samuel Adam Mahama Foster were implicated in the scandal. A UK court heard charges against Samuel Adam Mahama Foster and his UK associates in the Airbus SE-Ghana case, leading to an INTERPOL Red Notice for their arrest.

Background of the Airbus Scandal

Ghana purchased three military airplanes—C295s—from Airbus, receiving the first in November 2011, the second in April 2012, and the third in November 2015. These deals were part of the 2009-2012 Strategic Plan of the Ghana Armed Forces and were approved by Ghana’s Parliament after contentious debates. The government promoted these acquisitions as part of a modernization effort for Ghana’s Air Force.

Funding for the first two C295s came from a €60,034,636 loan facility from Deutsche Bank S.A.E., while a further €11,750,000 loan from Fidelity Bank Ghana Limited was approved by Parliament for the acquisition of two DA42 MPP Guardian surveillance aircraft for the Ghana Air Force. Parliament also approved a total loan sum of $105,370,177.09 from the Brazilian Development Bank (BNDES) for the purchase of an Embraer E190 jet for the country.

The purchases were criticized by then-Minority Leader Osei Kyei-Mensah-Bonsu, who argued that the deals were non-transparent and padded with inflated costs. Despite these criticisms, the government proceeded with the agreements.

One of the C295s acquired under the deal was used in United Nations-led missions in Mali. The others were intended to support strategic operations of the Ghana Air Force, including surveillance of offshore oil production fields, border patrols, pilot training, and internal troop transportation.

In November 2014, then-President John Mahama announced plans to acquire additional military equipment, including five Super Tucanos, Mi-17s, and four Z-9s, for the Ghana Air Force. These purchases were justified as necessary to reduce reliance on civilian flights for military operations.

UK Court’s Judgement

A recent judgment by England’s Crown Court in Southwark has revived suspicions that the agreements, particularly those involving the C295s, were corrupt. On January 21, 2020, the court approved a Deferred Prosecution Agreement (DPA) between the Serious Fraud Office (SFO) and Airbus SE, which followed investigations revealing extensive bribery by the aircraft manufacturer, in violation of the Bribery Act 2010.

The court found that prosecuting Airbus would lead to significant job losses and damage the company’s long-term performance, potentially costing the company £200 billion. As a result, the court agreed that the DPA was in the public interest and met the requirements of fairness, reasonability, and proportionality.

SFO investigations revealed that Airbus had engaged in bribery schemes to secure contracts in various countries, including Ghana. In the case of Ghana, Airbus officials were found to have either bribed or agreed to bribe intermediaries with close links to a high-ranking state official who had influence over the country’s aircraft purchase plans between 2011 and 2015. Although names were not mentioned in the court documents, the timeframe aligns with the Mills-Mahama era.

The first agreement involved a bribe of €5 million, disguised as a commission to an intermediary engaged by Airbus to promote its proposal to sell two C295 aircraft to Ghana. Although this initial bribe was not paid, subsequent deals involving three C295 aircraft were successfully arranged through intermediaries, including “Intermediary 5,” identified as a relative of a powerful Ghanaian official.

The court also revealed that, after an internal investigation exposed the link between “Intermediary 5” and the unnamed high-ranking Ghanaian official, the transactions were rerouted through a Spanish third-party company to circumvent due diligence requirements. This Spanish company, which had no prior dealings with Ghana, was falsely represented as the facilitator of the aircraft purchase agreements. Following the successful completion of the deals, Airbus paid nearly €4 million in bribes disguised as commissions to the Spanish company, which then funneled the payments to “Intermediary 5.”

Although “Intermediary 5” later claimed that Airbus owed him €1.6 million for the third C295 deal, this payment was not honored.