Is GIA-USA Heading for The Hague?

Sources close to The Business Chronicle indicates that GIA-USA is most likely to refer the disagreement between them and Ghana International Airlines (GIA) to the Court of Arbitration in the Hague, Holland, after the disagreement could not be resolved after six weeks according to the shareholders' agreement.

The commercial court trying the case filed against the Attorney General (AG), Ghana International Airlines (GIA) and the Chief of Staff by GIA-USA stayed proceeding to enable parties to the suit go for mediation and arbitration according to the shareholders' agreement.

The court presided over by Justice Samuel Marfo Sau made this decision contrary to Section D (19) of the shareholders agreement, which the government failed to invoke at the heat of the GIA saga.

But after the stipulated six weeks, the disagreement has not been resolved, thus paving way for GIA-USA to go to Hague.

According to the source, the government of Ghana has not responded to a proposal from GIA-USA for amicable settlement.

GIA-USA further went ahead to nominate a mediator from the United Kingdom and a letter to that effect was sent to government, but nobody in government acknowledged receipt.

"He was in the country from London and he had to go back without doing anything," the source said.

The shareholders agreement states that 'any disagreement or dispute between the shareholders shall be settled amicably by the shareholders, failing which the matter shall be referred to mediation by a person agreed upon between the shareholders'.

The agreement states further that if after six weeks of disagreement, the shareholders are unable to resolve their dispute, the matter may be referred to arbitration and the arbitration board composed of three arbiters shall hear any dispute submitted by the party to arbitration.

According to the agreement, each shareholder shall nominate one arbiter and these two shall designate a third arbiter not from the USA or Ghana, who shall be chairman of the arbitration board and added that if the arbitrators do not succeed in designating a third arbiter within fourteen days after the latter of the two arbiters has been designated, the third arbiter shall, at the request of any shareholder, be designated by the president of the permanent court of arbitration in the Hague, Holland.

It said arbitration proceedings shall be conducted in Holland in accordance with the rules of procedure of the United Nations Commission on International Trade Law and the parties hereto specially waive their right to the plea of forum non convenience."

GIA was in to take a big chunk of the market share of the airline industry in Ghana but after what was described as a "military-style takeover" of the national carrier allegedly by the Chief of Staff, Mr. Kwadwo Mpiani, the fortunes of the airline started plummeting.

"This military-style takeover of an airline is illegal and we would take legal action against those involved next week," Mr. Sammy Crabbe, vice president of GIA in charge of public affairs, told The Business Chronicle.

He said the takeover was a breach of the GIA contract and was surprised that in this era of rule of law and the golden age of business, someone could be dictatorial and takeover an international company like that.

There was confusion at the offices of Ghana International Airlines earlier this year when officials believed to be from the castle attempted to lock out the Chief Executive Officer, Brian Presbury, in what appears to be disagreements over who controls the national carrier.

A large crowd, in the ensuing encounter, besieged the Silver Star offices of the airline until police personnel brought the situation under control.

According to Mr. Crabbe, a meeting between Directors of the Airline and some government officials at the Castle ended abruptly when a heated argument ensued between the Minister of Presidential Affairs, Kwadwo Mpianim, who is also in charge of Aviation, and the Chief Executive Officer (CEO), Mr. Brain Presbury, over the control of the airline, which led to Mr. Mpianim firing Brian Presbury.

He alleged that Mr. Mpianim said he had assumed control of the airline.

Later, some gentlemen purporting to be security operatives from the Castle arrived at the offices of the airline to lock out Mr. Presbury and other management staff.

Subsequently, another group believed to be loyal to the Vice President of GIA in charge of Public Affairs, Sam Crabbe, arrived on the premises apparently to resist the attempted lock out of the CEO.

With the large crowd gathered at the forecourt in the midst of the confusion, police officers were quickly dispatched to maintain sanity on the scene.

Officials from the US consulate later arrived at the premises for a meeting with the Directors of the airline and then drove off with Mr. Presbury and others.