His laissez-faire attitude is killing the airline slowly - Board
THE BOARD of Directors of Ghana Airways has given more reasons as to why it sacked Mr Philip Owusu, as Chief Executive Officer (CEO) of Ghana Airways.

In a five-page letter to the Minister of Roads and Transport, dated March 9, 2004, and signed by Dr E.R.K. Dwemoh, Chairman of the company?s Board of Directors, it observed that Mr Owusu?s unwillingness to co-operate with the Board, and his inability to make sound commercial decisions or implement the Road-Map to the airline?s success, will make it difficult, if not impossible, for the Board and Management to achieve their objectives to turn around the fortunes of the airline.

It went on to describe Mr Owusu as a mis-match for the position of Chief Executive of the Ghana Airways Company Limited.

According to the Board, when it discovered that the leasing of DC10 aircraft was not meeting good corporate practices, it decided to await a plan for re-orientating the company?s staff to operate the newer planes. However, according to the Board, until it decided to terminate his appointment, Mr Owusu had not submitted any plans concerning his next steps, in spite of that, the uneconomical DC10s were being flown, while the company incurred heavy losses.

With caution, according to the Board, it decided to form a committee to assist with the leasing of the DC10.

In the process, according to the Board, it asked the CEO to obtain a Technical-Due-Diligence on the planes to ascertain their suitability, safety and technical competence.

That notwithstanding, according to the Board, ?none of these studies were provided, but the CEO authorised the release of funds for Ghana Airways to lease the planes which did not meet proper commercial scrutiny.

According to the Board, the Chief Executive and his Management told them that the cost of the Technical Due Diligence of US$40,000 was excessive, and that Ghana Airways staff could do the same thing cheaper.

In the final analysis, according to the Board, the cost of the staff doing the evaluation of this aircraft, cost Ghana Airways over US$100,000. ?This is clearly a mismanagement of our meagre resources?, it noted.

Furthermore, according to the Board, the display of commercial and technical incompetence on the part of the CEO was manifested when he insisted on engaging a certain Brian Davies, an expatriate, to implement the Road Map to the company?s recovery, when he had refused to use the same Road Map as a working paper for the management of Ghana Airways.

According to the Board, Mr Owusu?s argument was that without the re-engagement of Mr Brian Davies to implement the Road Map, a performance gap will exist in management?s ability to implement the action plan. This, the Board considered, as a grave indictment on the CEO?s capability, since the implementation of the Road Map is purely an operational and functional issue.

This is because Ghana Airways has already incurred ?20,000 (twenty thousand pounds) as a fee for the assignment carried out by the consultant. The consultant?s re-engagement will result in further disbursement of a colossal E48,000 (forty-eight thousand Euros) per annum, which is equivalent to ?720,000,000.00 (seven hundred and twenty million cedis).

?Amazingly, the Road Map to recovery contains many issues that do not cost money to implement, but could save Ghana Airways lots of money. Among others, the Board indicated that although Mr Owusu has shown no commitment to bring formal proposals to implement them, he rather keeps threatening the Board that if it did not shut up, and find the money now, the Airline would collapse, any time now.

They Board accused him of continuing to provide it with obsolete and incomplete financial information. For instance, when the Board insisted on receiving timely and accurate financial reports, Mr Owusu demanded authorisation to hire financial consultants to prepare this task that the Board believes could be done in-house, if he directed a good work programme to be instituted in the Accounts Department.

The Board said it is its belief that Mr Owusu was not providing the focused leadership that can harness the scanty resources at Ghana Airways? return to profitability.

According to the Board, it observed, with much dismay, that the company?s fixed costs had started increasing again, while resources dwindled ? a pattern that had been well reversed, just before Mr Owusu?s arrival at the helm of affairs.

?His laissez-faire attitude is killing the airline slowly?, remarked the Board. The Board conceded that as part of the recovery process, a recommendation was made for Ghana Airways to enter into a contractual arrangement with Global Air, an Australian-based aircraft operator. ?A general overview of a Memorandum of Understanding (MOU) prepared for the purpose appeared acceptable.

?The Board, in looking to fulfill its judicial duty, and exercise the necessary caution to engage such a company, mandated the CEO to provide due diligence report before the agreement was signed.

?Without compliance with the Board?s directive, the CEO is said to have gone ahead to execute the MOU with Global Air?, revealed the Board. Finally, the Board mentioned that it has been very displeased at the level of disrespect the CEO had shown to the sector minister, his deputy and officials of the ministry.

The Board contended that the insolence of Mr Owusu had soured the cordial and co-operative relations that existed between the company and the ministry.

This, according to the Board, made it difficult to see professional consultation from the ministry, as it did in the past.