It has now been confirmed that, the GT/Vodafone deal was not the only one struck without the participation of the Divestiture Implementation Committee (DIC), but that of Western Telesystems Ltd (Westel) suffered the same fate.
Celtel International, a subsidiary of Zain (formerly named the MTC Group) in 2007 signed an agreement to acquire 75% of Western Telesystems Ltd (Westel) from the Government of Ghana for USD 120 million.
By that deal Government of Ghana remains a shareholder in Westel with a 25% holding through the Ghana National Petroleum Corporation.
Zain followed through to roll out its 3.5G network in the country, with Managing Director, Chris Gabriel disclosing to President Mills at the Castle that Zain had invested over $420 million in Ghana since it acquired the Westel Shares.
All these have however been done on the backs of what appears to be an illegal divestiture procedure, since the entity entrusted with the responsibility of implementing government divestitures, the DIC, had been totally ignored in the whole divestiture process.
Highly placed sources at the DIC Secretariat confirmed to the Financial Intelligence (FI) that the Committee did not play any roles at all in the whole process.
The former Managing Director of Westel, Ursula Owusu said it was a sub-committee of the Ministry of Communication, together with officials of the Finance and Justice and the State Enterprises Commission that implemented the divestiture.
She believes that since the shares were originally those of Ghana National Petroleum Corporation, and that it was not a complete acquisition that Zain did, there was no wrong doing in the sidelining of DIC.
When contacted, Zain Ghana said they have referred the enquiries to their Group legal Department in Kuwait for answers as to how they could have participated in the divestiture process knowing that the DIC was not involved in the sales.
…Vodafone, Gov’t were aware
Information available to the Financial Intelligence (FI) also suggests that both Vodafone and government may have been aware of the legal ramifications of the Ghana Telecom (GT) sale if it was done without the legally mandated body.
They however chose to strike the deal without the (Divestiture Implementation Committee (DIC) until after Parliamentary approval before they brought it to the DIC to hand over. “When government has already transacted a business and you are asked to hand over, what you can do about it?” a source at the DIC quipped.
Highly placed sources at the DIC secretariat confirmed to the FI that DIC was not involved at all in the whole divestiture process involving GT and Vodafone.
According to these sources, the DIC was only used as a rubber stamp for the decision already ratified by Parliament when Vodafone insisted at the last minute that the DIC was brought into the picture otherwise they would not sign their side of the Sale and Purchase Agreement(SPA).
It has been confirmed also that although, the DIC was instructed by government to hand over the GT assets officially to Vodafone, after parliament’s ratification, the committee never saw the SPA on which the hand-over was being done.
“Till date, I have note seen the SPA between Government of Ghana and Vodafone, and when we asked for it at the hurriedly convened Committee meeting which effected the hand-over, we were told it was not available,” said one of the sources, adding, “we were asked to sign the hand-over papers, all the same.
Naturally the DIC should have prepared the SAP after scrutinising the buyer’s business plan. But we do not have any documents of the sale here,” the source said.
At the time of the transactions the offer from Telkom South Africa who offered $947 million for 66.67 per Cent of the original GT shares with an additional $ 1.334 billion investment into the company over a ten year period.
But government decided to give out 70 per cent of an enlarged GT which included the National Fiber Optic Back-bone, being constructed with a $30 million Chinese Exim Bank loan and the fiber assets of Voltacom, for $ 900 million.
This is what makes many Ghanaians believe that government allowed Ghana to lose value-for-money when it did not use the right channel to execute the deal.
Checks at the National Communication Authority (NPA) also revealed that the NCA was not part of the ministerial sub-committee which sold out GT to Vodafone.
Currently, some members of the Convention People’s Party (CPP) are in court contesting the sale, and industry watchers are keen to see whether government would take any action on the SPA or wait till the determination of the court case.
By: Justice Lee Adoboe
Monday, September 28, 2009
Bank of Ghana errs on the side of caution
• Holds policy rate despite bright outlook
Despite indications of a more favourable final quarter and calls for a relax in its monetary control mechanism, Ghana’s central bank left its policy rate unchanged for a third successive time.
Following its recent sittings to review developments in the third quarter of the year, Dr Paul Acquah, the outgoing Governor of the Bank of Ghana (BoG), announced that the Ghanaian economy is seeing signs of stabilization in the third quarter, painting a bright picture on the outlook for the final quarter, but stopped short of announcing a reduction in its prime rate which has been pegged at 18.5 per cent since February this year.
The upward adjustment in the policy rate to a five-year high in February from 17 per cent was to anchor high inflationary expectations.
"Inflation and growth appear well balanced with policies working to strengthen the disinflation process that has begun and keep it on the path towards the inflation target of 14.5 percent for the year," Governor Paul Acquah announced last week at a meeting with the press.
Dr Paul Acquah, whose tenure has been largely successful with the implementation of a number of critical reforms in the country’s financial sector, said efforts to restraint inflation are beginning to make impact.
“Consumer price inflation as well as core inflation remain high around 20 per cent, but the recent monthly increases have been modest and there are signs of reduced volatility in prices and in the exchange rate of the cedi against the major currencies,” he said.
“Latest surveys show more positive assessment of the general macroeconomic outlook; and a rebound in both business and consumer confidence, with some downward revision of inflation expectations,” the Governor stated.
With food inflation expected to decline further, and the cedi having achieved some stability, appearing to be appreciating gradually against the dollar, several seasoned analysts had predicted a marginal drop in the policy rate this time round.
The MPC however, likely drawing on previous experiences, preferred to err on the side of caution.
Governor Acquah remarked in his delivery last week that even though there are initial signs on the global front pointing to recovery, particularly, in the US, Europe and the leading emerging market economies, “policy makers are receiving the news with some cautious optimism, warning against pre-mature withdrawal of stimulus measures which could put the recovery at risk”.
After peaking at 15.5% in October 2005, inflation followed a downward trend through early 2007. The central bank in response lowered its prime rate rather too rapidly from 18.5% in April 2005 to 12.5% in December 2006. Inflation however started shooting up again after April. 2007.
The central bank’s decision comes in the wake of stern criticism against the bank’s Inflation Targeting Mechanism which critics say has failed to address high rates of inflation in the country.
Joe Abbey, Executive Director of the Centre for Policy Analysis (CEPA) describes the government and the bank’s year-end inflation target of 14.5 per cent as overly ambitious given the current trend in consumer inflation, and points out that the desire to meet such short-term targets has dire implications for the domestic economy. The Policy institute projects a year end inflation of 20.9 per cent.
In an interview with the Financial Intelligence (FI), Dr Abbey took a swipe at the BoG’s Inflation Targeting framework, calling for a more flexible framework that could be more favourable to a developing economy.
According to the CEPA boss, CEPA sides with the IMF in calling for a more flexible Inflation Targeting framework, describing the current as too rigid a framework.
“There is nothing to clap about the fact that we perhaps are the only developing country that has an IT framework since it is not conducive to our economy”.
He said the global financial crises has revealed the fact that the IT framework as it is now can fail even in advanced countries that are already at low rates of inflation.
In the new model that is called for, the central bank should be able to project what the unemployment rate or GDP growth rate would be if we try to achieve a certain level of inflation, Dr Abbey noted.
“We need a model which will remind you of what it will cost you to achieve a particular target, and therefore you do not drive in the blind.
“You don’t just set such a target and try to chase it in the same year. You are more of a gradualist, because you have in mind the cost you are imposing on society. You have in mind that you are not just doing statistical modeling”, the renowned economist explained.
Quizzed by the FI on the effectiveness of the Inflation Targeting framework since its introduction into the country’s monetary policy process, Governor Acquah declined to comment, preferring an independent judgment on the effectiveness of the mechanism.
In-house analysts at the FI predict however that still under the guise of cautious optimism, new Governor, Kwesi Amissah-Arthur, might stick to the current 18.5% policy rate after the next MPC until a more favourable environment.
By:Charles K. Amoah
Despite indications of a more favourable final quarter and calls for a relax in its monetary control mechanism, Ghana’s central bank left its policy rate unchanged for a third successive time.
Following its recent sittings to review developments in the third quarter of the year, Dr Paul Acquah, the outgoing Governor of the Bank of Ghana (BoG), announced that the Ghanaian economy is seeing signs of stabilization in the third quarter, painting a bright picture on the outlook for the final quarter, but stopped short of announcing a reduction in its prime rate which has been pegged at 18.5 per cent since February this year.
The upward adjustment in the policy rate to a five-year high in February from 17 per cent was to anchor high inflationary expectations.
"Inflation and growth appear well balanced with policies working to strengthen the disinflation process that has begun and keep it on the path towards the inflation target of 14.5 percent for the year," Governor Paul Acquah announced last week at a meeting with the press.
Dr Paul Acquah, whose tenure has been largely successful with the implementation of a number of critical reforms in the country’s financial sector, said efforts to restraint inflation are beginning to make impact.
“Consumer price inflation as well as core inflation remain high around 20 per cent, but the recent monthly increases have been modest and there are signs of reduced volatility in prices and in the exchange rate of the cedi against the major currencies,” he said.
“Latest surveys show more positive assessment of the general macroeconomic outlook; and a rebound in both business and consumer confidence, with some downward revision of inflation expectations,” the Governor stated.
With food inflation expected to decline further, and the cedi having achieved some stability, appearing to be appreciating gradually against the dollar, several seasoned analysts had predicted a marginal drop in the policy rate this time round.
The MPC however, likely drawing on previous experiences, preferred to err on the side of caution.
Governor Acquah remarked in his delivery last week that even though there are initial signs on the global front pointing to recovery, particularly, in the US, Europe and the leading emerging market economies, “policy makers are receiving the news with some cautious optimism, warning against pre-mature withdrawal of stimulus measures which could put the recovery at risk”.
After peaking at 15.5% in October 2005, inflation followed a downward trend through early 2007. The central bank in response lowered its prime rate rather too rapidly from 18.5% in April 2005 to 12.5% in December 2006. Inflation however started shooting up again after April. 2007.
The central bank’s decision comes in the wake of stern criticism against the bank’s Inflation Targeting Mechanism which critics say has failed to address high rates of inflation in the country.
Joe Abbey, Executive Director of the Centre for Policy Analysis (CEPA) describes the government and the bank’s year-end inflation target of 14.5 per cent as overly ambitious given the current trend in consumer inflation, and points out that the desire to meet such short-term targets has dire implications for the domestic economy. The Policy institute projects a year end inflation of 20.9 per cent.
In an interview with the Financial Intelligence (FI), Dr Abbey took a swipe at the BoG’s Inflation Targeting framework, calling for a more flexible framework that could be more favourable to a developing economy.
According to the CEPA boss, CEPA sides with the IMF in calling for a more flexible Inflation Targeting framework, describing the current as too rigid a framework.
“There is nothing to clap about the fact that we perhaps are the only developing country that has an IT framework since it is not conducive to our economy”.
He said the global financial crises has revealed the fact that the IT framework as it is now can fail even in advanced countries that are already at low rates of inflation.
In the new model that is called for, the central bank should be able to project what the unemployment rate or GDP growth rate would be if we try to achieve a certain level of inflation, Dr Abbey noted.
“We need a model which will remind you of what it will cost you to achieve a particular target, and therefore you do not drive in the blind.
“You don’t just set such a target and try to chase it in the same year. You are more of a gradualist, because you have in mind the cost you are imposing on society. You have in mind that you are not just doing statistical modeling”, the renowned economist explained.
Quizzed by the FI on the effectiveness of the Inflation Targeting framework since its introduction into the country’s monetary policy process, Governor Acquah declined to comment, preferring an independent judgment on the effectiveness of the mechanism.
In-house analysts at the FI predict however that still under the guise of cautious optimism, new Governor, Kwesi Amissah-Arthur, might stick to the current 18.5% policy rate after the next MPC until a more favourable environment.
By:Charles K. Amoah
Wednesday, September 23, 2009
GT – Vodafone deal
...What Was DIC's role?
It has been suggested that, had due process been followed, with the appropriate state agencies responsible for divestiture allowed to implement the Ghana Telecom(GT )sale agenda, Ghana Government would have received a far better deal than what was received from Vodafone.
According to reports, Telecom South Africa had offered $947million for 66.67% of the original Ghana Telecom shares after giving the company an Enterprise Value (EV) of $1.635 billion.
As to why government gave an enlarged GT for a relatively lower sum of $ 900 million to Vodafone who had given it an Enterprise Value of $1.286 billion is still a source of worry to many Ghanaians.
Assets such as the National Fiber Optic Backbone which was being constructed with a $ 30 million Chinese Exim Bank Loan and the Volta-Com fiber assets were added to the original GT assets, which were priced by South African Telekom for $1.635billion, with Vodafone pricing the enlarged GT at $1.286 billion.
Enquiries by the Financial Intelligence (FI) have pointed to a possible circumvention of due process in the whole deal, raising questions of the legality of the Sales and Purchase Agreement (SPA) between Government of Ghana and Vodafone.
One of such acts of illegality that threaten the very basis of the Sale and Purchase Agreement between Government of Ghana (GoG) and Vodafone is the circumvention of the Divestiture laws of Ghana, as government is reported to have wholly ignored the Divestiture Implementation Committee (DIC), which is mandated by law (PNDC L 326) to carry out the divestiture of State Owned Enterprises (SOEs)on behalf of government.
However, checks from the DIC revealed to the FI that the committee was wholly ignored in the whole process leading to the sale of 70% shares of Ghana Telecom to Vodafone in August 2008. This therefore, leaves the deal open to legal tussles, with far reaching consequences for the two parties.
MP for Asikuma Odoben Brakwa, Hon. P.C Appiah Ofori has told the FI that when he raised this issue on the floor of Parliament, it was brushed aside. He insisted that the former president and a few of his officials dealt directly with Vodafone officials, leaving no room for the mandated state organs to act.
“Issues of such importance must not be allowed to be decided to suit the parochial interests of a few people,” Hon. Ofori stated.
Former Minister of State at the Ministry of Finance and Economic Planning, Anthony Akoto Osei who spoke to this paper from outside the country noted that, the former Attorney General and Minister of Justice, Joe Ghartey should be in the best position to answer the legal issues.
“I am not sure the last time the DIC participated directly in any divestiture in this country,” Dr. Akoto Osei told this paper, adding that there have been many such divestitures without the participation of the DIC.
Efforts however to get Hon. Joe Ghartey proved futile and his deputy, Hon. Osei Kwame Prempeh also failed to answer his phone when this paper called.
The law establishing the DIC specifically mandates the body to plan, monitor, coordinate and evaluate all divestitures. It is also to arrange for the effective communication of government policies and objectives for any divestiture.
This law which was enacted in 1993 gave an unambiguous mandate to the DIC to implement and execute all government policies in respect of divestiture programmes.
The DIC is also to ensure consistency in procedures for divestiture, in particular with regard to valuation, invitation for bids, negotiation of sales and settlement of accounts.
According to the mandate, when government of Ghana declares its intentions to diversify itself of some or all of its shares in a State Owned Enterprise (SOE), the DIC carries out the whole implementation, by placing announcements in the media, inviting bids from all interested persons/institutions.
After this is done, it receives the tender offers for short listing. The committee’s council which meets periodically then goes through the short listed applications and arrives at a fair conclusion as to which of the offers is likely to satisfy the purposes of the divestiture.
The DIC, membership of which includes technocrats, legal experts, and ministers of state then prepares the documents for the divestiture, which it forwards to the Executive for study and approval.
The executive, after approving the deal then forwards this document to the legislature for debate and approval, Parliament scrutinises the document and approves of it, but if Parliament discovers any problem in the agreement, it then makes recommendations for amendment before ratifying it.
By: Justice Lee Adoboe
It has been suggested that, had due process been followed, with the appropriate state agencies responsible for divestiture allowed to implement the Ghana Telecom(GT )sale agenda, Ghana Government would have received a far better deal than what was received from Vodafone.
According to reports, Telecom South Africa had offered $947million for 66.67% of the original Ghana Telecom shares after giving the company an Enterprise Value (EV) of $1.635 billion.
As to why government gave an enlarged GT for a relatively lower sum of $ 900 million to Vodafone who had given it an Enterprise Value of $1.286 billion is still a source of worry to many Ghanaians.
Assets such as the National Fiber Optic Backbone which was being constructed with a $ 30 million Chinese Exim Bank Loan and the Volta-Com fiber assets were added to the original GT assets, which were priced by South African Telekom for $1.635billion, with Vodafone pricing the enlarged GT at $1.286 billion.
Enquiries by the Financial Intelligence (FI) have pointed to a possible circumvention of due process in the whole deal, raising questions of the legality of the Sales and Purchase Agreement (SPA) between Government of Ghana and Vodafone.
One of such acts of illegality that threaten the very basis of the Sale and Purchase Agreement between Government of Ghana (GoG) and Vodafone is the circumvention of the Divestiture laws of Ghana, as government is reported to have wholly ignored the Divestiture Implementation Committee (DIC), which is mandated by law (PNDC L 326) to carry out the divestiture of State Owned Enterprises (SOEs)on behalf of government.
However, checks from the DIC revealed to the FI that the committee was wholly ignored in the whole process leading to the sale of 70% shares of Ghana Telecom to Vodafone in August 2008. This therefore, leaves the deal open to legal tussles, with far reaching consequences for the two parties.
MP for Asikuma Odoben Brakwa, Hon. P.C Appiah Ofori has told the FI that when he raised this issue on the floor of Parliament, it was brushed aside. He insisted that the former president and a few of his officials dealt directly with Vodafone officials, leaving no room for the mandated state organs to act.
“Issues of such importance must not be allowed to be decided to suit the parochial interests of a few people,” Hon. Ofori stated.
Former Minister of State at the Ministry of Finance and Economic Planning, Anthony Akoto Osei who spoke to this paper from outside the country noted that, the former Attorney General and Minister of Justice, Joe Ghartey should be in the best position to answer the legal issues.
“I am not sure the last time the DIC participated directly in any divestiture in this country,” Dr. Akoto Osei told this paper, adding that there have been many such divestitures without the participation of the DIC.
Efforts however to get Hon. Joe Ghartey proved futile and his deputy, Hon. Osei Kwame Prempeh also failed to answer his phone when this paper called.
The law establishing the DIC specifically mandates the body to plan, monitor, coordinate and evaluate all divestitures. It is also to arrange for the effective communication of government policies and objectives for any divestiture.
This law which was enacted in 1993 gave an unambiguous mandate to the DIC to implement and execute all government policies in respect of divestiture programmes.
The DIC is also to ensure consistency in procedures for divestiture, in particular with regard to valuation, invitation for bids, negotiation of sales and settlement of accounts.
According to the mandate, when government of Ghana declares its intentions to diversify itself of some or all of its shares in a State Owned Enterprise (SOE), the DIC carries out the whole implementation, by placing announcements in the media, inviting bids from all interested persons/institutions.
After this is done, it receives the tender offers for short listing. The committee’s council which meets periodically then goes through the short listed applications and arrives at a fair conclusion as to which of the offers is likely to satisfy the purposes of the divestiture.
The DIC, membership of which includes technocrats, legal experts, and ministers of state then prepares the documents for the divestiture, which it forwards to the Executive for study and approval.
The executive, after approving the deal then forwards this document to the legislature for debate and approval, Parliament scrutinises the document and approves of it, but if Parliament discovers any problem in the agreement, it then makes recommendations for amendment before ratifying it.
By: Justice Lee Adoboe
2009 half-year investments dipped 94%
…but 2nd quarter made momentous gains
The second quarterly reports released by the Ghana Investment Promotions Centre (GIPC) has shown that both number and value of investments into the Ghanaian economy over the first half of 2009 declined by 18.6% and 94% respectively, compared with what pertained in the same period in 2008.
The total number of projects registered for the first half of 2009 was 118 with a total estimated value of GH¢181.61 million ($129.72 million), as against 145 projects registered for the corresponding half year of 2008 with a total estimated value of GH¢3.03 billion ($3.09 billion).
Interestingly, the total initial capital transfers amounted to GH¢105.22 million ($75.16 million), representing 314.3% increase in receipts over the corresponding half year of 2008, which amounted to GH¢25.39 million ($25.91million).
The reason for this disparity in total investments recorded and initial total capital transfers for the two corresponding periods is not readily available, since the centre did not provide this in its release.
However, the seeming investor apathy that characterised the first quarter of 2009 seems to have given way to soaring investor confidence as indicated by the result in the second quarter of 2009.
According to the report, investments in the second quarter of 2009 numbered 83, accounting for 56.6% jump over that of the same period last year, which recorded 53 newly registered projects.
The total initial capital transfers for the newly registered projects during the second quarter amounted to GH¢92.65 million ($66.18 million), with the total estimated value for these projects being GH¢156.34 million or ($111.67 million). In contrast, for the corresponding quarter of 2008, the initial equity transfers was GH¢7.73 million ($7.89 million).
This value also represents a significant increase of 91.9% compared to GH¢57.03
million ($58.19 million) recorded for the same period in 2008, when the cedi was much stronger than the dollar.
With 83 new projects registered in the second quarter as against 35 in the preceding one, the second quarter has recorded a 137.14% jump in investments over investments recorded for the first quarter of 2009.
It is quite clear that the apparent global financial meltdown which started two years ago may have contributed to the low Foreign Direct Investment (FDI) in the first quarter of 2009.
Although the reported decline in the financial turmoil in the West and the current growth in reported investment figures seems to be pointing to positive investment prospects, 2009 investment figures could still fall short of what was recorded at the end of 2008.
According to the release, of the 83 projects registered during the second quarter, 56
(67.47%) were wholly-owned foreign enterprises, while 27 representing 32.53% were joint ventures between Ghanaians and their foreign partners.
The total Foreign Direct Investment component of the estimated value of the projects registered during the period was GH¢129.25 million ($92.32 million), representing 82.68% of the total estimated value, and a local currency component of GH¢27.08 million ($19.35million), representing 17.32%.
“For the corresponding quarter of 2008, the FDI component of the estimated value of projects registered was GH¢51.97 million ($53.04million) and the local currency component was GH¢3.9 million ($ 3.98 million) of the estimated cost of the projects,” the report noted.
Total foreign equity was GH¢107.12 million ($76.51 million) for the quarter.
While China, with 14 new investments, topped the list of countries with the highest number of projects registered, Nigeria with $70.62 million topped the list of countries with the largest value of investments registered during this quarter, with Access Bank alone recording GH¢96.32 million ($68.80 million).
The service sector still leads the pack of investments with service registering 29 new companies valued at $79.96 million, representing 71.6%. This is followed by manufacturing with 19 newly registered, with a total value of $16.12 and a percentage value of 14.44.
General trading followed third with 15 new projects valued at $7.98 million and representing 7.15%, while building and construction came fourth with eight newly registered projects valued at $ 4.25 million in estimated value and accounting for 3.80%.
There were six newly registered projects in the Agricultural sector which were valued at $1.89 million with a percentage value of 1.69, while tourism followed with four newly registered projects with an estimated value of $0.82 million and representing 0.73%.
Liason services also had two newly registered investments with an estimated value of $ 0.65 million with 0.58%.
The other major companies which brought in investments apart from Access Bank are: Triton Aquaculture Africa Limited, who are into aquaculture, hatchery, feed plant and processing plant for fish and poultry farming with an estimated project value of GH¢1.89 million ($1.35 million).
Scanstyle Biofuel Mim Limited, engaged in the production of wood pellets from wood waste with an estimated project value of GH¢7.19 million ($5.14million).
American Tank & Vessel Ghana Limited, who deals in fabrication, engineering and erection of pipelines, steel tanks and vessels with an estimated project value of GH¢3.99 million ($2.85 million).
Main One Cable Co. Ltd, who are engaged in installation of Submarine Optic Cable between Portugal and South Africa on the West Coast of Africa with an estimated project value of GH¢5.05 million ($3.60 million).
A total of 8,125 jobs are expected to be created in the first half of the year from the registered projects.
The second quarterly reports released by the Ghana Investment Promotions Centre (GIPC) has shown that both number and value of investments into the Ghanaian economy over the first half of 2009 declined by 18.6% and 94% respectively, compared with what pertained in the same period in 2008.
The total number of projects registered for the first half of 2009 was 118 with a total estimated value of GH¢181.61 million ($129.72 million), as against 145 projects registered for the corresponding half year of 2008 with a total estimated value of GH¢3.03 billion ($3.09 billion).
Interestingly, the total initial capital transfers amounted to GH¢105.22 million ($75.16 million), representing 314.3% increase in receipts over the corresponding half year of 2008, which amounted to GH¢25.39 million ($25.91million).
The reason for this disparity in total investments recorded and initial total capital transfers for the two corresponding periods is not readily available, since the centre did not provide this in its release.
However, the seeming investor apathy that characterised the first quarter of 2009 seems to have given way to soaring investor confidence as indicated by the result in the second quarter of 2009.
According to the report, investments in the second quarter of 2009 numbered 83, accounting for 56.6% jump over that of the same period last year, which recorded 53 newly registered projects.
The total initial capital transfers for the newly registered projects during the second quarter amounted to GH¢92.65 million ($66.18 million), with the total estimated value for these projects being GH¢156.34 million or ($111.67 million). In contrast, for the corresponding quarter of 2008, the initial equity transfers was GH¢7.73 million ($7.89 million).
This value also represents a significant increase of 91.9% compared to GH¢57.03
million ($58.19 million) recorded for the same period in 2008, when the cedi was much stronger than the dollar.
With 83 new projects registered in the second quarter as against 35 in the preceding one, the second quarter has recorded a 137.14% jump in investments over investments recorded for the first quarter of 2009.
It is quite clear that the apparent global financial meltdown which started two years ago may have contributed to the low Foreign Direct Investment (FDI) in the first quarter of 2009.
Although the reported decline in the financial turmoil in the West and the current growth in reported investment figures seems to be pointing to positive investment prospects, 2009 investment figures could still fall short of what was recorded at the end of 2008.
According to the release, of the 83 projects registered during the second quarter, 56
(67.47%) were wholly-owned foreign enterprises, while 27 representing 32.53% were joint ventures between Ghanaians and their foreign partners.
The total Foreign Direct Investment component of the estimated value of the projects registered during the period was GH¢129.25 million ($92.32 million), representing 82.68% of the total estimated value, and a local currency component of GH¢27.08 million ($19.35million), representing 17.32%.
“For the corresponding quarter of 2008, the FDI component of the estimated value of projects registered was GH¢51.97 million ($53.04million) and the local currency component was GH¢3.9 million ($ 3.98 million) of the estimated cost of the projects,” the report noted.
Total foreign equity was GH¢107.12 million ($76.51 million) for the quarter.
While China, with 14 new investments, topped the list of countries with the highest number of projects registered, Nigeria with $70.62 million topped the list of countries with the largest value of investments registered during this quarter, with Access Bank alone recording GH¢96.32 million ($68.80 million).
The service sector still leads the pack of investments with service registering 29 new companies valued at $79.96 million, representing 71.6%. This is followed by manufacturing with 19 newly registered, with a total value of $16.12 and a percentage value of 14.44.
General trading followed third with 15 new projects valued at $7.98 million and representing 7.15%, while building and construction came fourth with eight newly registered projects valued at $ 4.25 million in estimated value and accounting for 3.80%.
There were six newly registered projects in the Agricultural sector which were valued at $1.89 million with a percentage value of 1.69, while tourism followed with four newly registered projects with an estimated value of $0.82 million and representing 0.73%.
Liason services also had two newly registered investments with an estimated value of $ 0.65 million with 0.58%.
The other major companies which brought in investments apart from Access Bank are: Triton Aquaculture Africa Limited, who are into aquaculture, hatchery, feed plant and processing plant for fish and poultry farming with an estimated project value of GH¢1.89 million ($1.35 million).
Scanstyle Biofuel Mim Limited, engaged in the production of wood pellets from wood waste with an estimated project value of GH¢7.19 million ($5.14million).
American Tank & Vessel Ghana Limited, who deals in fabrication, engineering and erection of pipelines, steel tanks and vessels with an estimated project value of GH¢3.99 million ($2.85 million).
Main One Cable Co. Ltd, who are engaged in installation of Submarine Optic Cable between Portugal and South Africa on the West Coast of Africa with an estimated project value of GH¢5.05 million ($3.60 million).
A total of 8,125 jobs are expected to be created in the first half of the year from the registered projects.
Tuesday, September 22, 2009
Africa fired up Exchangesfor Commodities
Capital market gurus from the African region have been in a fix as to whether the continent got its priority right by going for the development of stock exchanges ahead of the pursuit for commodity exchanges.
These mixed reactions greeted a thought-provoking delivery by Eleni Gabre Madhin, Chief Executive Officer (CEO) of the Ethiopian Commodities Exchange on the need for African economies to pursue the establishment of Commodities Exchanges to deal with the continent’s long standing poverty.
Speaking at the just ended Africa Regional Market Development Conference in Accra last week, Dr Gabre Madhin told delegates that included capital markets regulators and economic policy handlers from across the continent that, as agrarian economies, Africa has to pay more attention to the development of its entire agric chain.
The establishment of commodities exchanges, she noted, is the best modality to achieve that objective. She was speaking on the theme, ‘Developing a viable commodities market in Africa’,
Narrating the Ethiopian example, she explained that they understudied several other commodity exchanges such as the Indian Commodities Exchange, after which they settled on a model that was more suitable to the countries socio-economic conditions.
The influential CEO is on record to have vacated a lucrative job at the World Bank to work for the establishment of the commodities exchange in her home country. Through this initiative, Ethiopia has now been transformed into a net exporter of grains.
In his concluding remarks, Prof EVO Dankwa, Chairman of Ghana’s Securities and Exchange Commission, called on African economies to embrace the idea of creating domestic commodities exchanges.
“It is evident from the submissions that benefits to be derived from the commodities exchange will impact on a wider section of our population than that of the stock market”.
The establishment of a Commodities Exchange is expected to result in the streamlining of the entire food distribution chain, including storage and transportation.
Prof Dankwa told the Financial Intelligence (FI) that his outfit is working closely with government to establish a Commodities Exchange in Ghana.
The FI in an earlier publication reported that The Natural Resources Institute, the consultancy wing of Greenwich University in charge of the project, had submitted the final draft on rules and regulations for the commodities exchange to the securities regulator.
Prof Dankwa also called for a much more effective regulation on the continent to enhance confidence in the capital markets, and to enable regulators deal with crisis situations which are unavoidable.
He further cautioned against speculative excesses.
The Conference, which was organised by the Ghana SEC in collaboration with the US SEC, and the US Agency for International Development (USAID was under the theme, ‘Towards Effective Regulation and Development of an Efficient Market in Africa’.
The Conference sought to establish effective ways of strengthening the continent’s capital markets as a tool for resource mobilization in the wake of the global financial crisis, which is having serious constraints on several African countries.
By:Charles K. Amoah
These mixed reactions greeted a thought-provoking delivery by Eleni Gabre Madhin, Chief Executive Officer (CEO) of the Ethiopian Commodities Exchange on the need for African economies to pursue the establishment of Commodities Exchanges to deal with the continent’s long standing poverty.
Speaking at the just ended Africa Regional Market Development Conference in Accra last week, Dr Gabre Madhin told delegates that included capital markets regulators and economic policy handlers from across the continent that, as agrarian economies, Africa has to pay more attention to the development of its entire agric chain.
The establishment of commodities exchanges, she noted, is the best modality to achieve that objective. She was speaking on the theme, ‘Developing a viable commodities market in Africa’,
Narrating the Ethiopian example, she explained that they understudied several other commodity exchanges such as the Indian Commodities Exchange, after which they settled on a model that was more suitable to the countries socio-economic conditions.
The influential CEO is on record to have vacated a lucrative job at the World Bank to work for the establishment of the commodities exchange in her home country. Through this initiative, Ethiopia has now been transformed into a net exporter of grains.
In his concluding remarks, Prof EVO Dankwa, Chairman of Ghana’s Securities and Exchange Commission, called on African economies to embrace the idea of creating domestic commodities exchanges.
“It is evident from the submissions that benefits to be derived from the commodities exchange will impact on a wider section of our population than that of the stock market”.
The establishment of a Commodities Exchange is expected to result in the streamlining of the entire food distribution chain, including storage and transportation.
Prof Dankwa told the Financial Intelligence (FI) that his outfit is working closely with government to establish a Commodities Exchange in Ghana.
The FI in an earlier publication reported that The Natural Resources Institute, the consultancy wing of Greenwich University in charge of the project, had submitted the final draft on rules and regulations for the commodities exchange to the securities regulator.
Prof Dankwa also called for a much more effective regulation on the continent to enhance confidence in the capital markets, and to enable regulators deal with crisis situations which are unavoidable.
He further cautioned against speculative excesses.
The Conference, which was organised by the Ghana SEC in collaboration with the US SEC, and the US Agency for International Development (USAID was under the theme, ‘Towards Effective Regulation and Development of an Efficient Market in Africa’.
The Conference sought to establish effective ways of strengthening the continent’s capital markets as a tool for resource mobilization in the wake of the global financial crisis, which is having serious constraints on several African countries.
By:Charles K. Amoah
Wednesday, September 16, 2009
Ghana’s financial sector heads for crisis
…As Committee of Regulators cease meetings
The Financial Intelligence can confirm that there is currently an uneasy calm among experts in Ghana’s financial services industry with regards to regulation, as the sector becomes increasingly fragmented, with some banks, insurance companies and other financial houses offering services that were hitherto outside their domain.
Such fears have heightened in view of the fact that under the current fragile global financial system, consultations among regulators of Ghana’s Financial Services Sector has broken down.
This follows the collapse of ‘a Committee of Regulators’ that was set up to meet periodically and discuss developments of common interest.
The Committee of Regulators, said to be an initiative of Dr Charles Asembri, a past Director General of the Securities and Exchange Commission (SEC), saw key officials from the Central Bank, Insurance Commission and the Securities and Exchange Commission, meeting regularly to synchronize the activities of the functional regulators, to deal with challenges that came up.
Without any legal backing, the arrangement was said to have broken down as a result of lack of commitment among members, and subsequent changes at the top hierarchy of some of the institutions.
The development is causing discomfort among certain market participants, who believe the work of this inter-institutional agency is much crucial now in the wake of current global developments.
The past government had initiated consultations on a possible legislation for the eventual merger of the regulatory roles of the National Insurance Commission (NIC), the Securities and Exchange Commission (SEC) and the Banking Supervision Department of the Bank of Ghana (BoG), in favour of the UK style single-spine regulation.
The Bank of Ghana was to be left to work independently on its monetary policy under the new order.
The putting together of that Act, our sources at the Finance Ministry indicate, has been suspended until the next two years.
In the absence of the single-spine regulatory system, market experts say there should be regular interaction between regulators of the Financial Services Sector, so as to avoid possible instances where industry players could manipulate the system, and introduce products outside their domain. Many experts attribute the recent financial meltdown in the United States and other developed economies to the situation where financial sector regulation was fragmented, with each regulator operating in a separate compartment.
Back here in Ghana, there have been instances when institutions with investment advisory licenses, micro finance houses, and non-bank financial institutions have turned deposit-taking institutions doing commercial banking business, with others engaging in other businesses they have not been authorized to engage in.
With the incidents of Pyram, Resource 5000, (R5), and CDH still fresh in the minds of many, it is not surprising to hear calls for strict vigilance on the part of regulators this time round.
In the more recent CDH case, the Bank of Ghana, Securities and Exchange Commission and National Insurance Commission on Monday August 9, 2004, placed a two-week moratorium on the operations of the CDH Group (made up of the CDH Financial Holdings Ltd., CDH Discount Ltd., CDH Securities Ltd., CDH Asset Management Ltd. and CDH Insurance Ltd) when some inconsistencies were detected.
The objectives of the moratorium, which was later extended a further 90 days, was to enable the companies update their financial records and properly establish their financial positions and viability.
This was precipitated by findings of individual and joint review visits by the Banking Supervision Department of the BOG and Market Surveillance Department of the SEC.
It was the constant interaction between the various regulatory agencies at the time that enabled them unravel the alleged shifts in assets from one portfolio to the other.
Ever since the onset of the Financial Crisis, the issue of whether domestic markets should be regulated by a single, consolidated regulator or through functional regulators working in concert has become topical among sector participants, and the debate is expected to take centre stage at the on-going Africa Regional Market Development Conference.
Many argue that cross-sectoral financial conglomerates and the blurring of the boundaries between financial products make consolidated regulation a necessity, because, without it, these conglomerates may face multiple regulators and possibly conflicting regulations. It has also been suggested that consolidated regulation offers economies of scale and scope and is better able to allocate scarce regulatory resources efficiently and effectively.
Other schools of thought have it that Ghana’s financial sector is still at its infant stage and will therefore require functional regulation to see to the development of the individual sectors before going for single-spine regulation.
By:Charles K. Amoah & Ebenezer Asare
The Financial Intelligence can confirm that there is currently an uneasy calm among experts in Ghana’s financial services industry with regards to regulation, as the sector becomes increasingly fragmented, with some banks, insurance companies and other financial houses offering services that were hitherto outside their domain.
Such fears have heightened in view of the fact that under the current fragile global financial system, consultations among regulators of Ghana’s Financial Services Sector has broken down.
This follows the collapse of ‘a Committee of Regulators’ that was set up to meet periodically and discuss developments of common interest.
The Committee of Regulators, said to be an initiative of Dr Charles Asembri, a past Director General of the Securities and Exchange Commission (SEC), saw key officials from the Central Bank, Insurance Commission and the Securities and Exchange Commission, meeting regularly to synchronize the activities of the functional regulators, to deal with challenges that came up.
Without any legal backing, the arrangement was said to have broken down as a result of lack of commitment among members, and subsequent changes at the top hierarchy of some of the institutions.
The development is causing discomfort among certain market participants, who believe the work of this inter-institutional agency is much crucial now in the wake of current global developments.
The past government had initiated consultations on a possible legislation for the eventual merger of the regulatory roles of the National Insurance Commission (NIC), the Securities and Exchange Commission (SEC) and the Banking Supervision Department of the Bank of Ghana (BoG), in favour of the UK style single-spine regulation.
The Bank of Ghana was to be left to work independently on its monetary policy under the new order.
The putting together of that Act, our sources at the Finance Ministry indicate, has been suspended until the next two years.
In the absence of the single-spine regulatory system, market experts say there should be regular interaction between regulators of the Financial Services Sector, so as to avoid possible instances where industry players could manipulate the system, and introduce products outside their domain. Many experts attribute the recent financial meltdown in the United States and other developed economies to the situation where financial sector regulation was fragmented, with each regulator operating in a separate compartment.
Back here in Ghana, there have been instances when institutions with investment advisory licenses, micro finance houses, and non-bank financial institutions have turned deposit-taking institutions doing commercial banking business, with others engaging in other businesses they have not been authorized to engage in.
With the incidents of Pyram, Resource 5000, (R5), and CDH still fresh in the minds of many, it is not surprising to hear calls for strict vigilance on the part of regulators this time round.
In the more recent CDH case, the Bank of Ghana, Securities and Exchange Commission and National Insurance Commission on Monday August 9, 2004, placed a two-week moratorium on the operations of the CDH Group (made up of the CDH Financial Holdings Ltd., CDH Discount Ltd., CDH Securities Ltd., CDH Asset Management Ltd. and CDH Insurance Ltd) when some inconsistencies were detected.
The objectives of the moratorium, which was later extended a further 90 days, was to enable the companies update their financial records and properly establish their financial positions and viability.
This was precipitated by findings of individual and joint review visits by the Banking Supervision Department of the BOG and Market Surveillance Department of the SEC.
It was the constant interaction between the various regulatory agencies at the time that enabled them unravel the alleged shifts in assets from one portfolio to the other.
Ever since the onset of the Financial Crisis, the issue of whether domestic markets should be regulated by a single, consolidated regulator or through functional regulators working in concert has become topical among sector participants, and the debate is expected to take centre stage at the on-going Africa Regional Market Development Conference.
Many argue that cross-sectoral financial conglomerates and the blurring of the boundaries between financial products make consolidated regulation a necessity, because, without it, these conglomerates may face multiple regulators and possibly conflicting regulations. It has also been suggested that consolidated regulation offers economies of scale and scope and is better able to allocate scarce regulatory resources efficiently and effectively.
Other schools of thought have it that Ghana’s financial sector is still at its infant stage and will therefore require functional regulation to see to the development of the individual sectors before going for single-spine regulation.
By:Charles K. Amoah & Ebenezer Asare
Breaking the inflation jinx
…Abundant food is a must
The inflation figure announced by the Ghana Statistical Service (GSS) shows that August 2009 inflation rate has dropped to 19.65%, representing a decrease of 0.85 percentage points from the July 2009 figure of 20.50%.
This, according to figures available, follows a three year trend of dipping inflation between July and September.
According to the Government Statistician, Grace Bediako, the August inflation is the lowest so far in 2009, a year which has witnessed relatively high inflationary trends, with the monthly change rate of -0.69% also representing the lowest in the year.
Dr. Bediako noted that Non-Food Inflation has been higher than Food Inflation with the difference between the two still widening. Whilst Non-Food inflation was 23.25% in the month, Food inflation recorded 14.75%.
Eastern Region registered the lowest inflation of 14.48 %, whilst the Upper East and Upper West regions recorded the highest of 33.29%. The urban and rural inflation for August 2009 was 22.37 % and 18.86 % respectively.
Experts in the field are watching closely whether, Ghana can for once break the jinx by sustaining the disinflation trends beyond November.
The Government Statistician however cautioned that the drop in inflation which follows exactly the patterns of the previous three years, might not be sustainable, giving credence to the assertion by the Centre for Economic Policy Analysis (CEPA) that end-year inflation could be above 20%.
"Looking at the trend, there is no reason to suggest that the rate will go down during the last two months of the year unless food prices hold out," she added.
She said as long as food inflation picks up around the end of year, coupled with the annual price hikes in December, high inflation could resume by that period.
This assertion comes against government’s reviewed target of 14.5 % end-of-year inflation.
Head of Economic Statistics at the GSS, Magnus Ebo Duncan believes for the disinflation trends to be sustained, the factors that push up inflation especially around the end of year should be dealt with effectively.
According to Mr. Duncan, food prices are one of the major factors contributing to inflation. He observed that inflation always eases during the harvest season, “but as soon as people begin to store up food, waiting for prices to peak before releasing them onto the market, prices shoot up again.”
The economic statistician called for an all-year-round farming especially in food items that have very fluctuating prices, with inflationary consequences for the economy. “If we do this, there would be an abundant food supply all year round, thereby leaving no incentive for hoarding food.”
He explained that for that to succeed however, irrigation facilities need to be put in place.
Mr. Duncan therefore lauded government’s decision to rehabilitate 41 dams in the three Northern Regions to support dry season farming. He believes when this is done, the production of maize, rice, millet and other cereals done in those areas would receive a boost.
He also believes that food processing needs to be encouraged, while storage facilities need to be established all over the country to prevent the wastage that goes on when there is a glut in the markets.
Government’s 14.5 year-end inflation target appears to be coming on the expected abundant food supply that the Minister for Food and Agriculture Kwesi Ahwoi has been promising for this year.
In addition to the bumper harvest, government has also promised to rehabilitate all the warehouses of the defunct Ghana Food Distribution Company (GFDC) in which surplus grain bought from farmers would be stored up.
Government is also promoting a Commodities Exchange where food crop prices would be determined a la companies’ stock tradings on the Stock Exchange.
In its mid-year budget review, government released GH¢ 10.7 million for its Youth-in-Agriculture program.
In March when the budget was released, the Centre for Budget Advocacy (CBA) called for bold initiatives to insulate the nation against the food, fuel and financial crisis. They actually called for subsidies for farmers which are needed to ensure abundant food production that will make the country food-secure.
Organisations such as the General Agricultural Workers Union (GAWU) and their partners Actionaid also believe that subsidies such as the one on fertilizer, and availability of affordable financial intermediation for Ghanaian farmers would ensure massive production of food that will make Ghana able to feed her people.
By: Justice Lee Adoboe
The inflation figure announced by the Ghana Statistical Service (GSS) shows that August 2009 inflation rate has dropped to 19.65%, representing a decrease of 0.85 percentage points from the July 2009 figure of 20.50%.
This, according to figures available, follows a three year trend of dipping inflation between July and September.
According to the Government Statistician, Grace Bediako, the August inflation is the lowest so far in 2009, a year which has witnessed relatively high inflationary trends, with the monthly change rate of -0.69% also representing the lowest in the year.
Dr. Bediako noted that Non-Food Inflation has been higher than Food Inflation with the difference between the two still widening. Whilst Non-Food inflation was 23.25% in the month, Food inflation recorded 14.75%.
Eastern Region registered the lowest inflation of 14.48 %, whilst the Upper East and Upper West regions recorded the highest of 33.29%. The urban and rural inflation for August 2009 was 22.37 % and 18.86 % respectively.
Experts in the field are watching closely whether, Ghana can for once break the jinx by sustaining the disinflation trends beyond November.
The Government Statistician however cautioned that the drop in inflation which follows exactly the patterns of the previous three years, might not be sustainable, giving credence to the assertion by the Centre for Economic Policy Analysis (CEPA) that end-year inflation could be above 20%.
"Looking at the trend, there is no reason to suggest that the rate will go down during the last two months of the year unless food prices hold out," she added.
She said as long as food inflation picks up around the end of year, coupled with the annual price hikes in December, high inflation could resume by that period.
This assertion comes against government’s reviewed target of 14.5 % end-of-year inflation.
Head of Economic Statistics at the GSS, Magnus Ebo Duncan believes for the disinflation trends to be sustained, the factors that push up inflation especially around the end of year should be dealt with effectively.
According to Mr. Duncan, food prices are one of the major factors contributing to inflation. He observed that inflation always eases during the harvest season, “but as soon as people begin to store up food, waiting for prices to peak before releasing them onto the market, prices shoot up again.”
The economic statistician called for an all-year-round farming especially in food items that have very fluctuating prices, with inflationary consequences for the economy. “If we do this, there would be an abundant food supply all year round, thereby leaving no incentive for hoarding food.”
He explained that for that to succeed however, irrigation facilities need to be put in place.
Mr. Duncan therefore lauded government’s decision to rehabilitate 41 dams in the three Northern Regions to support dry season farming. He believes when this is done, the production of maize, rice, millet and other cereals done in those areas would receive a boost.
He also believes that food processing needs to be encouraged, while storage facilities need to be established all over the country to prevent the wastage that goes on when there is a glut in the markets.
Government’s 14.5 year-end inflation target appears to be coming on the expected abundant food supply that the Minister for Food and Agriculture Kwesi Ahwoi has been promising for this year.
In addition to the bumper harvest, government has also promised to rehabilitate all the warehouses of the defunct Ghana Food Distribution Company (GFDC) in which surplus grain bought from farmers would be stored up.
Government is also promoting a Commodities Exchange where food crop prices would be determined a la companies’ stock tradings on the Stock Exchange.
In its mid-year budget review, government released GH¢ 10.7 million for its Youth-in-Agriculture program.
In March when the budget was released, the Centre for Budget Advocacy (CBA) called for bold initiatives to insulate the nation against the food, fuel and financial crisis. They actually called for subsidies for farmers which are needed to ensure abundant food production that will make the country food-secure.
Organisations such as the General Agricultural Workers Union (GAWU) and their partners Actionaid also believe that subsidies such as the one on fertilizer, and availability of affordable financial intermediation for Ghanaian farmers would ensure massive production of food that will make Ghana able to feed her people.
By: Justice Lee Adoboe
Monday, September 14, 2009
Audit report indicts NHIS man
Fresh evidence in the hands of the Financial Intelligence (FI) points to a possible misappropriation of the seed money of ¢300,000,000 (three hundred million Cedis), an equivalent of GH¢30,000.00, which was transferred to the Ketu District Assembly in August 2003 to establish the Health Insurance Scheme in that district.
An audit query sent to the District Assembly by Baffuor Awuah and Associates, an auditing firm, in January 2006 made a number of worrying remarks about how the then Scheme Manager for the district, Raymond Avinu and the scheme Accountant handled the book keeping procedure on the spending of the seed money.
It noted that “apart from the Payment Vouchers (PVs) that were maintained as evidence of the disbursements of the seed money, no proper books of accounts were maintained on the seed money”.
The auditors also observed that PVs had not been retired; and “No evidence of how funds were released for Health Insurance related activities have been disbursed”. They noted for example that there were no official receipts and supporting documents on these spending.
Baffuor Awuah and Associates attributed these irregularities to the weakness of the board in their duties as they noted that the board did not have the three categories of internal controls namely Directive, Preventive and Detective controls available.
The auditors recommended that the District Assembly took bold steps to ensure that all hanging PVs were retired and persons found culpable should be made to refund the monies involved if possible.
However this paper leant that before the District Finance Officer could take action on the recommendations, he was transferred to another district, with Mr. Raymond Avinu doing all he could to cover-up his tracks.
There is also some evidence available of how Mr. Avinu may have abused his office. A letter of introduction he wrote for a lady named Emilia Ivy Hadzide purporting she was an employee of the scheme is just one of such acts of indiscretion on the part of the then District Scheme Manager.
A letter dated September 16,2005, under the heading NOMINATION OF MS EMILIA IVY HADZIDE FOR THE NETHERLANDS FELLOWSHIP PROGRAMME, is one of such cases of indiscretion, as the same lady also admitted she had been supplying goods to the scheme in the district.
Whereas the letter stated that the Ms Hadzide took appointment at the Ketu District Health Insurance Scheme since 2004, the lady categorically denied ever being an employee of the scheme.
“Go and check from their accounts whether I was ever on their pay roll”, was what she told this reporter.
Justifying the reason for the letter to the Netherlands embassy purporting her eligible for such assistance, she explained that she had been a voluntary worker for the scheme while at the same time supplying goods to the same entity.
It is therefore unclear which Ketu District Health Insurance Scheme Mr. Avinu referred to in that letter.
When this paper contacted Mr. Avinu to respond to the issues, he only stated that the audit query had been dealt with appropriately and all subsequent audit exercises had given the scheme a clean bill of health.
He however declined any further comments on the matter.
It can be recalled that this same man was reported to have engaged in a procurement scandal when he was an Officer at the Ketu District office.
By: Justice Lee Adoboe
An audit query sent to the District Assembly by Baffuor Awuah and Associates, an auditing firm, in January 2006 made a number of worrying remarks about how the then Scheme Manager for the district, Raymond Avinu and the scheme Accountant handled the book keeping procedure on the spending of the seed money.
It noted that “apart from the Payment Vouchers (PVs) that were maintained as evidence of the disbursements of the seed money, no proper books of accounts were maintained on the seed money”.
The auditors also observed that PVs had not been retired; and “No evidence of how funds were released for Health Insurance related activities have been disbursed”. They noted for example that there were no official receipts and supporting documents on these spending.
Baffuor Awuah and Associates attributed these irregularities to the weakness of the board in their duties as they noted that the board did not have the three categories of internal controls namely Directive, Preventive and Detective controls available.
The auditors recommended that the District Assembly took bold steps to ensure that all hanging PVs were retired and persons found culpable should be made to refund the monies involved if possible.
However this paper leant that before the District Finance Officer could take action on the recommendations, he was transferred to another district, with Mr. Raymond Avinu doing all he could to cover-up his tracks.
There is also some evidence available of how Mr. Avinu may have abused his office. A letter of introduction he wrote for a lady named Emilia Ivy Hadzide purporting she was an employee of the scheme is just one of such acts of indiscretion on the part of the then District Scheme Manager.
A letter dated September 16,2005, under the heading NOMINATION OF MS EMILIA IVY HADZIDE FOR THE NETHERLANDS FELLOWSHIP PROGRAMME, is one of such cases of indiscretion, as the same lady also admitted she had been supplying goods to the scheme in the district.
Whereas the letter stated that the Ms Hadzide took appointment at the Ketu District Health Insurance Scheme since 2004, the lady categorically denied ever being an employee of the scheme.
“Go and check from their accounts whether I was ever on their pay roll”, was what she told this reporter.
Justifying the reason for the letter to the Netherlands embassy purporting her eligible for such assistance, she explained that she had been a voluntary worker for the scheme while at the same time supplying goods to the same entity.
It is therefore unclear which Ketu District Health Insurance Scheme Mr. Avinu referred to in that letter.
When this paper contacted Mr. Avinu to respond to the issues, he only stated that the audit query had been dealt with appropriately and all subsequent audit exercises had given the scheme a clean bill of health.
He however declined any further comments on the matter.
It can be recalled that this same man was reported to have engaged in a procurement scandal when he was an Officer at the Ketu District office.
By: Justice Lee Adoboe
e.tv Ghana available on Skyy TV
e.tv Ghana, the latest free-to-air television channel has entered into a broadcasting agreement with Skyy television network, a pay-television provider in Ghana.
This agreement adds e.tv Ghana to the Skyy TV bouquet. This means that viewers outside Accra with a Skyy TV set-up box will be able to enjoy e.tv Ghana in the comfort of their homes throughout the country.
CEO Akwasi Agyeman says “we are very happy to be involved in this venture with Skyy TV. e.tv Ghana stands for quality and true entertainment. We believe Skyy TV channel is a good partner who also does not compromise on quality. Together with Skyy TV, we hope to reach every home in Ghana with all the stimulating programmes on the e.tv Ghana menu”.
Although their own transmissions are currently present only in Accra and parts of Volta and Eastern Regions, the CEO believes that wit Skyy which has the infrastructure to cover all of Ghana, e.tv can be watched by Ghanaians all over the country
“We’ve had a lot of complains in Takoradi ever since e.tv was taken off our bouquet. This new development with e.tv Ghana will be of great joy to our numerous viewers across Ghana. They have been spoilt with e.tv’s quality programming and cannot accept anything less” says Mr. Wilson Arthur, CEO of Skyy Digital TV.
Without any fanfares, bells or whistles, e.tv Ghana, the newest television station in Ghana quietly hit the airwaves with a sneak preview of the programming viewers can expect to see during the final test transmissions.
Ria Bonthes General Manager of e.tv Ghana gave the assurance that the station is coming on stage like a bomb, since its hallmark is quality.
According to her the crew has been under training for the last 12 months and are prepared to bring quality programming to their viewers in Ghana.
She said e.tv is not going to be the kind of radio in pictures that Ghanaians have been served with over the years.
She said the local content that would be taking off from October 1 would include a fast running morning show, Lunch time News, lasting for an hour with Gideon Aryeequaye of TV3 fame hosting the Prime Time news at 8.00pm.
Already e.tv has made some notable catches from other TV stations ranging from technical men to news casts.
This agreement adds e.tv Ghana to the Skyy TV bouquet. This means that viewers outside Accra with a Skyy TV set-up box will be able to enjoy e.tv Ghana in the comfort of their homes throughout the country.
CEO Akwasi Agyeman says “we are very happy to be involved in this venture with Skyy TV. e.tv Ghana stands for quality and true entertainment. We believe Skyy TV channel is a good partner who also does not compromise on quality. Together with Skyy TV, we hope to reach every home in Ghana with all the stimulating programmes on the e.tv Ghana menu”.
Although their own transmissions are currently present only in Accra and parts of Volta and Eastern Regions, the CEO believes that wit Skyy which has the infrastructure to cover all of Ghana, e.tv can be watched by Ghanaians all over the country
“We’ve had a lot of complains in Takoradi ever since e.tv was taken off our bouquet. This new development with e.tv Ghana will be of great joy to our numerous viewers across Ghana. They have been spoilt with e.tv’s quality programming and cannot accept anything less” says Mr. Wilson Arthur, CEO of Skyy Digital TV.
Without any fanfares, bells or whistles, e.tv Ghana, the newest television station in Ghana quietly hit the airwaves with a sneak preview of the programming viewers can expect to see during the final test transmissions.
Ria Bonthes General Manager of e.tv Ghana gave the assurance that the station is coming on stage like a bomb, since its hallmark is quality.
According to her the crew has been under training for the last 12 months and are prepared to bring quality programming to their viewers in Ghana.
She said e.tv is not going to be the kind of radio in pictures that Ghanaians have been served with over the years.
She said the local content that would be taking off from October 1 would include a fast running morning show, Lunch time News, lasting for an hour with Gideon Aryeequaye of TV3 fame hosting the Prime Time news at 8.00pm.
Already e.tv has made some notable catches from other TV stations ranging from technical men to news casts.
Ghana needs 2.5 billion dollars to close its infrastructure gap-Fifi Kwetey
Ghana needs to source funds from Public-Private Partnerships (PPPs) to close the country’s medium-term annual infrastructure gap estimated at 2.5 billion dollars, Mr. Fifi Fiavi Kwetey, Deputy Minister of Finance and Economic Planning (MoFEP),has said.
He was speaking at the Second Annual National (PPPs) conference in Accra to increase participants’ understanding and awareness of the PPP concept and how it could help in the rapid execution and growth of the country’s infrastructure and social needs.
The conference, under the theme: “Public-Private Partnership for Social Services and Infrastructure,” was organized by the World Bank in collaboration with the Department for International Development (DFID).
“History has proven that PPPs, when managed properly, can help close the infrastructure gap. Some international jurisdictions have used this approach extensively and realized tremendous benefits,” Mr Kwetey said.
Alluding to international examples of beneficiaries of such economic partnerships, the Deputy Minister said countries such as Chile, USA and UK had used the PPPs approach to fill the infrastructure gap in their respective countries adding that Ghana needed to adopt and implement the concept.
Mr. Kwetey said government had identified the bigger role the PPPs played in infrastructure and service delivery in the country as well as in accelerating its socio-economic development. “It is time to tap into the wealth of experience, knowledge and ready capital accumulated by those in the private sector,” he said.
Mr. Kwetey called for political and regulatory mechanisms in order to effectively implement the PPPs concept in the country and stressed that policy development and stakeholder involvement was critical to the success of the concept. “Information should be shared at all levels and maximum focus should be maintained on institutional strengthening of the respective entities.
This requires capacity building for civil servants in the appropriate framework and design of PPPs as well as adequate support for improving procurement capacity,” he said. Mr. Kwetey announced that the Ministry was putting in place structures to support a PPP take-off in the country at the national and local levels.
He said a Project and Financial Analysis Unit had been established in the sector as an advisory unit within the Ministry, to assess and monitor investment projects as well as taking on the responsibility of PPP policy and its implementation within government.
Mr John Dramani Mahama, Vice President, in a speech read on his behalf, noted that a growing economy, clean environment and strong prosperous communities were three areas of national importance that required strategic investment needed to build a strong economic foundation for the country.
He said government was considering projects to be undertaken under the PPP framework such as intercity highways, rehabilitation of the rail network, development of educational facilities as well as provision of health and social services to create a Ghanaian infrastructure advantage.
“The transition from direct public investment to PPPs requires the development of new attitudes. We need to modernize our traditional way of developing infrastructure and welcome the private sector as partners in development,” he said.
GNA
He was speaking at the Second Annual National (PPPs) conference in Accra to increase participants’ understanding and awareness of the PPP concept and how it could help in the rapid execution and growth of the country’s infrastructure and social needs.
The conference, under the theme: “Public-Private Partnership for Social Services and Infrastructure,” was organized by the World Bank in collaboration with the Department for International Development (DFID).
“History has proven that PPPs, when managed properly, can help close the infrastructure gap. Some international jurisdictions have used this approach extensively and realized tremendous benefits,” Mr Kwetey said.
Alluding to international examples of beneficiaries of such economic partnerships, the Deputy Minister said countries such as Chile, USA and UK had used the PPPs approach to fill the infrastructure gap in their respective countries adding that Ghana needed to adopt and implement the concept.
Mr. Kwetey said government had identified the bigger role the PPPs played in infrastructure and service delivery in the country as well as in accelerating its socio-economic development. “It is time to tap into the wealth of experience, knowledge and ready capital accumulated by those in the private sector,” he said.
Mr. Kwetey called for political and regulatory mechanisms in order to effectively implement the PPPs concept in the country and stressed that policy development and stakeholder involvement was critical to the success of the concept. “Information should be shared at all levels and maximum focus should be maintained on institutional strengthening of the respective entities.
This requires capacity building for civil servants in the appropriate framework and design of PPPs as well as adequate support for improving procurement capacity,” he said. Mr. Kwetey announced that the Ministry was putting in place structures to support a PPP take-off in the country at the national and local levels.
He said a Project and Financial Analysis Unit had been established in the sector as an advisory unit within the Ministry, to assess and monitor investment projects as well as taking on the responsibility of PPP policy and its implementation within government.
Mr John Dramani Mahama, Vice President, in a speech read on his behalf, noted that a growing economy, clean environment and strong prosperous communities were three areas of national importance that required strategic investment needed to build a strong economic foundation for the country.
He said government was considering projects to be undertaken under the PPP framework such as intercity highways, rehabilitation of the rail network, development of educational facilities as well as provision of health and social services to create a Ghanaian infrastructure advantage.
“The transition from direct public investment to PPPs requires the development of new attitudes. We need to modernize our traditional way of developing infrastructure and welcome the private sector as partners in development,” he said.
GNA
Saturday, September 12, 2009
UT GHATALIA in judicial drama
Court Registrar’s conduct questioned
The protracted legal battle between Unique Trust Financial Service, otherwise known as UT Financial Services took a dramatic turn two Fridays ago (August 28,2009) when the same court registrar who prepared the order paper for bailiffs to execute judgment on UT’s assets had to order the bailiffs mid-stream to abandon the execution
Infuriated by the registrar’s action, the plaintiff, Managing Director of Ghatalia Ltd D. T. Darko has filed a petition to the Judicial Secretary against the registrar.
The Fast Track High Court registrar, Rexford Gyimah acting upon the entering of judgment filed by Ghatalia on January 30, 2009 to appropriate his relives granted by the Appeals court, had issued an order of execution against UT, and asked that some of their properties be confiscated.
Justice Anin Yeboah, then an Appeals Court judge on July 26, 2007, upheld an earlier ruling by the Fast Track High Court that UT’s sale of Ghatalia’s goods was unlawful.
Justice Yeboah also upheld the fact that the Lower Court judge had described the act of UT in selling off the goods without notice to Ghatalia as ‘complete robbery’.
M.D for Ghatalia then caused a writ of Fi Fa to be issued on August 18, 2009 so that UT paid him interest of GH¢ 13,162.46 on the judgment debt of.
Minutes after the Registrar had ordered Execution of the motion on the morning of August 28, 2009, UT’s legal team arrived on the precincts of the Fast Track High Court, and rushed in to seek audience with the registrar.
The bailiffs went ahead to attach the vehicle in which the UT legal team with the court’s seizure notice, but as they moved to the Osu branch of UT to seize more assets of the company the same registrar called them back t abandon the execution.
According to Mr. Darko, upon returning to the Registrar’s office, he met officials of UT, deep in consultation with Mr. Gyimah, he refused to join in as he was asked to, but rather stormed out of the office, “in protest of the surreptitious demeanor of the registrar in attempting to cajole me into an agreement to vacate the execution”
Later, Mr. Darko said the registrar handed him a letter purporting that the judgment debtor had filed a motion of Stay of Execution, “a fact which was not within my knowledge and had never been within my knowledge”.
In a conversation with the Financial Intelligence, Lawyer Christopher Akwasi, of Menka Premo Chambers, solicitors for UT, explained that UT had filed a motion on May 25, 2009, to set aside the Motion of Execution filed by Mr. Darko.
According to him, when it was realized on that fateful morning of August, 28, 2009 that the court registrar had difficulty admitting the motion as a Stay of Execution, “We went ahead to file the motion to stay execution”.
Although sentiments are diverse on this development, one legal insight that runs through comments is that if there had been a motion filed by UT to set aside the Motion of Execution filed earlier on, the Registrar must be aware, and should have notified Ghatalia.
By: Justice LeeAdoboe
Zoomlion donates 170 motorbikes Local Gov’t ministry
Zoomlion Ghana Ltd has donated 170 motorbikes to the Ministry of Local Government and Rural Development for distribution to Environmental Sanitation officers in the various districts in the country.
This is part of the company’s attempt to help the facilitation of monitoring and supervision of Sanitation Guards programme.
Speaking at the handing over of the equipment, General Manager of Zoomlion, Beatrice Amponsah noted that the presentation marked another milestone in the collaborative steps to enhance environmental sanitation in Ghana.
She said Zoomlion as a company believes in Public Private Partnership, which is an effective tool for a sustainable national growth.
She promised that the company’s doors are open to students from the Schools of Hygiene who would like to come on Practical Attachment at Zoomlion whenever the need arises.
“We have had some training with environmental Health Officers on waste management, modern recycling and other sanitation related issues, just to deepen our relationship”, Mrs. Amponsah disclosed.
She expressed the belief that the presentation of the motorbikes would enhance effective supervision, monitoring of sanitation in the various assemblies, hygiene education and the collection of environmental data.
She asked of the ministry to ensure an effective use of the bikes as well as maintenance in order to make them have a long life span.
Chief Director of the Ministry for Local Government and Rural Development,, Daniel Nyankamawu thanked Zoomlion for their continuous assistance to government in the sanitation sector.
He said the donation has come at an opportune time since government was in the process of procuring motorbikes for the sanitation workers.
“The donation therefore comes as good complementary for government’s efforts”, Mr. Nyankamawu noted
This is part of the company’s attempt to help the facilitation of monitoring and supervision of Sanitation Guards programme.
Speaking at the handing over of the equipment, General Manager of Zoomlion, Beatrice Amponsah noted that the presentation marked another milestone in the collaborative steps to enhance environmental sanitation in Ghana.
She said Zoomlion as a company believes in Public Private Partnership, which is an effective tool for a sustainable national growth.
She promised that the company’s doors are open to students from the Schools of Hygiene who would like to come on Practical Attachment at Zoomlion whenever the need arises.
“We have had some training with environmental Health Officers on waste management, modern recycling and other sanitation related issues, just to deepen our relationship”, Mrs. Amponsah disclosed.
She expressed the belief that the presentation of the motorbikes would enhance effective supervision, monitoring of sanitation in the various assemblies, hygiene education and the collection of environmental data.
She asked of the ministry to ensure an effective use of the bikes as well as maintenance in order to make them have a long life span.
Chief Director of the Ministry for Local Government and Rural Development,, Daniel Nyankamawu thanked Zoomlion for their continuous assistance to government in the sanitation sector.
He said the donation has come at an opportune time since government was in the process of procuring motorbikes for the sanitation workers.
“The donation therefore comes as good complementary for government’s efforts”, Mr. Nyankamawu noted
Thursday, September 10, 2009
Gov’t to give up ‘Golden Shares’ in GCB
There are rumours in media circles about government’s intended decision to sell off a significant portion of its stake in the Ghana Commercial Bank (GCB),to allow for partnership with a strategic investor and to raise badly needed revenue..
The move is also expected to offer the bank full autonomy to run its operations and to shore up the bank’s operations for increased profitability.
By this, Government is likely to reduce its holdings of 56,608,613 shares (constituting 21.36% of total outstanding shares) held on its behalf by the Ministry of Finance and Economic Planning(MOFEP) to a much lower stake.
Together with a number of key government institutions that have stakes in the bank, with SSNIT holding 79,000,000 shares(29.81%) of total) government still holds on to a a significant parcel of shares that enabled it influence decisions at the bank since the state entity was privatized in 1996.
A Financial Intelligence source close to government relates that the issue of the proposed admission of a strategic investor has been topical within cabinet, and has come up for discussion at the Economic Advisory Council level.
Even though the Finance Minister tells the FI there is no such intention, with Professor Kofi Afful, a member of the Economic Advisory Council denying any knowledge of this intent in an interview, evidence keeps mounting in support of the anticipated move.
Recent price appreciations in and intense activity in GCB shares on the Ghana Stock Exchange (GSE) has raised eye brows that some insiders may be privy to some privileged information.
From an all-year low of GH¢ 0.48, that resulted from the challenges at the equity market front the price of GCB led a pack of recoveries in the past two weeks hitting GH¢ 0.82 before receding to GH¢ 0.79 at the close of trade last Friday. The stock has also been one of the most actively traded.
Whilst analysts say they expect such recoveries from the stock that traded well below its book value they appear to be amazed at the speed of recovery in the stock. Book value per share of GCB was GH¢0.7840 as at December 2008.
Another pointer to a possible attempt by government reengineer the operations of GCB has been the attempt to clean up the debt sheet of Tema Oil Refinery (TOR). This is expected to clean GCB’s loan portfolio of huge TOR debt to prepare the grounds for the intended offloading.
As to the entry strategy, e capital markets expect who is also an investment lawyer tells FI that the strategic partner could acquire a significant stake in the bank making direct offers to individuals shareholders.
“Government might also sell off portions of its stake in bits or in block to the entity”, he stated.
Despite the stipulation for the regulator’s approval before acquisitions in excess of 10% of total holdings are executed in financial stocks, the expert explained that with government’s support the potential partner can easily receive approval from the Bank of Ghana for an eventual takeover.
“The situation then serves as a big test case for the central Bank’s independence from government”, he contended.
As to the sale strategy, it has been speculated that government will trade off its stake in bits; in order not to violate the stipulation for the regulator’s approval before such trades in excess of 10% of total holdings are executed.
Even though the bank is touted as the country’s most widely networked bank with over 152 branches and agencies dotted all over the country, it has not returned much to its shareholders. The company recorded a profit margin of 20.69% in 200, which was 3.92 percentage points below the industry average for listed banks. GCB’s return on total assets was a low 3% of the same period.
Established in 1953as a premiere commercial banking institution, GCB was listed on the GSE in 1996 under the ticker, GCB and the bank remains one of the most capitalized on the local bourse. It is amongst the first to meet the regulator’s new capital requirements of GH¢ 60 million.
Whilst government business continues to be one critical source of secured investment income, the bank has constantly suffered from government interference that might not be necessarily prudent under market conditions, such as providing cheaper financing for governmental institutions.
It is expected that the entry of an international financial institution could change the situation, and strengthen management for enhanced profitability.
The experience of job cuts and excessive repatriation of profit that has been experienced under earlier withdrawals of state control from hither-to State Owned Enterprises (SOEs) continue to raise serious concerns within civil society about the social effects of such decisions.
By:Charles K. Amoah
Tuesday, September 8, 2009
Akyem Kotoku citizens kick against Newmont’s Akyem Project
About 300 citizens of Akyem Kotoku traditional area have kicked against the granting of license to Newmont Gold Ghana Ltd (NGGL) to prospect for minerals in the Ajenua Bepo Forest Reserve.
The petitioners who include farmers, youth and citizens who believe their livelihoods and environmental security would be affected by the operations of Newmont Akyem project have also condemned recent statements issued by some Akyem Traditional Rulers, youth and other agents of Newmont on the concerns raised by United Nations against the Newmont Akyem project.
The three page letter dated August 25, 2009, was forwarded to the Ministers for Lands and Natural Resources and Environment Science and Technology and copied to the Executive Director of the Environment Protection Agency and the Country Representative of UNDP
In the letter the concerned groups noted unequivocally that the Akyem project of Newmont would destroy the Ajenua Bepo Forest reserve, which is a Forest Reserve of biodiversity importance, “and the Forest Reserve is at an altitude, which promotes rainfall and supports agriculture in the area”.
“There is no doubt that the destruction of the Ajenua Bepo Forest Reserve would affect agriculture in the area. Newmont has stated in its documents that its mining operations would destroy many sites of cultural importance especially cemeteries including a Royal cemetery in Yayaso, shrines, etc” the petition noted.
The group accused Newmont of contravening Section 73 (3) of the Minerals and Mining Act, 2006 (Act 703), using all manner of manipulations through the Crop Rate Compensation Committee which was set up by Newmont to impose compensation rates on the poor farmers.
“Section 73 (3) of the Minerals and Mining Act, 2006 (Act 703) states clearly that the amount of compensation payable shall be determined by an agreement between the owner or lawful occupier of any land subject to a mineral right and the holder of a mineral right (the mining company)”, the group contended.
According to the group they have information that Newmont used the same method to compensate cocoa farmers in the Brong Ahafo Region, who were affected by the company’s mining activities, and this action has worsened the situation of the poor farmers.
In the letter, the petitioners also repeated the allegation that Newmont had influenced some chiefs and opinion leaders in the area with money and contracts to do “the dirty work” on the ground for the miners.
They said when they realised this action by Newmont they contacted WACAM to help them fight against the opening of the project which would last for only 15 years but would cause permanent harm to their lands, pollute rivers and destroy their cultural heritage.
“The chiefs who are now acting as agents of Newmont would not be personally affected by the Newmont Akyem mining project” said the group, adding, “We are very happy that the UN Commission for Human Rights has questioned the rationale behind mining in the Ajenua Bepo forest reserve based on national and global concerns.
According to the group when Newmont could not respond effectively to the UN querry, they contracted “agents made up of some chiefs, youth and opinion leaders to do the dirty work for them. Instead of responding to the concerns of the UN, Newmont and its paid agents decided to resort to unwarranted attacks on WACAM”.
“We wish to state that the Newmont Akyem project would lead to the loss of livelihood for about 10,000 people, destruction of cultural heritage including public cemeteries and royal cemeteries among others. These negative impacts have been stated in the Environmental Impact Statement of Newmont”, the group reiterated.
Commenting on the purported letter sent to the UN by some Akyem Traditional Rulers, said “these paid agents of Newmont, which unfortunately includes some chiefs, spoke for themselves and not everybody in the area because we are individual property owners who are fighting to protect our properties and the future generation”.
The petitioners who had earlier sent petitions to government against the Newmont Akyem Project signed by about 215 Farmers and citizens in the area on 1st September 2006 and 28th February 2008 have therefore thrown their support behind calls against surface mining operations that Newmont intends to carry out in the Ajenua Bepo forest reserve, since they believe it would destroy the Forest Reserve.
By Justice Lee Adoboe
The petitioners who include farmers, youth and citizens who believe their livelihoods and environmental security would be affected by the operations of Newmont Akyem project have also condemned recent statements issued by some Akyem Traditional Rulers, youth and other agents of Newmont on the concerns raised by United Nations against the Newmont Akyem project.
The three page letter dated August 25, 2009, was forwarded to the Ministers for Lands and Natural Resources and Environment Science and Technology and copied to the Executive Director of the Environment Protection Agency and the Country Representative of UNDP
In the letter the concerned groups noted unequivocally that the Akyem project of Newmont would destroy the Ajenua Bepo Forest reserve, which is a Forest Reserve of biodiversity importance, “and the Forest Reserve is at an altitude, which promotes rainfall and supports agriculture in the area”.
“There is no doubt that the destruction of the Ajenua Bepo Forest Reserve would affect agriculture in the area. Newmont has stated in its documents that its mining operations would destroy many sites of cultural importance especially cemeteries including a Royal cemetery in Yayaso, shrines, etc” the petition noted.
The group accused Newmont of contravening Section 73 (3) of the Minerals and Mining Act, 2006 (Act 703), using all manner of manipulations through the Crop Rate Compensation Committee which was set up by Newmont to impose compensation rates on the poor farmers.
“Section 73 (3) of the Minerals and Mining Act, 2006 (Act 703) states clearly that the amount of compensation payable shall be determined by an agreement between the owner or lawful occupier of any land subject to a mineral right and the holder of a mineral right (the mining company)”, the group contended.
According to the group they have information that Newmont used the same method to compensate cocoa farmers in the Brong Ahafo Region, who were affected by the company’s mining activities, and this action has worsened the situation of the poor farmers.
In the letter, the petitioners also repeated the allegation that Newmont had influenced some chiefs and opinion leaders in the area with money and contracts to do “the dirty work” on the ground for the miners.
They said when they realised this action by Newmont they contacted WACAM to help them fight against the opening of the project which would last for only 15 years but would cause permanent harm to their lands, pollute rivers and destroy their cultural heritage.
“The chiefs who are now acting as agents of Newmont would not be personally affected by the Newmont Akyem mining project” said the group, adding, “We are very happy that the UN Commission for Human Rights has questioned the rationale behind mining in the Ajenua Bepo forest reserve based on national and global concerns.
According to the group when Newmont could not respond effectively to the UN querry, they contracted “agents made up of some chiefs, youth and opinion leaders to do the dirty work for them. Instead of responding to the concerns of the UN, Newmont and its paid agents decided to resort to unwarranted attacks on WACAM”.
“We wish to state that the Newmont Akyem project would lead to the loss of livelihood for about 10,000 people, destruction of cultural heritage including public cemeteries and royal cemeteries among others. These negative impacts have been stated in the Environmental Impact Statement of Newmont”, the group reiterated.
Commenting on the purported letter sent to the UN by some Akyem Traditional Rulers, said “these paid agents of Newmont, which unfortunately includes some chiefs, spoke for themselves and not everybody in the area because we are individual property owners who are fighting to protect our properties and the future generation”.
The petitioners who had earlier sent petitions to government against the Newmont Akyem Project signed by about 215 Farmers and citizens in the area on 1st September 2006 and 28th February 2008 have therefore thrown their support behind calls against surface mining operations that Newmont intends to carry out in the Ajenua Bepo forest reserve, since they believe it would destroy the Forest Reserve.
By Justice Lee Adoboe
Human resource shortage hits irrigation sector
While the ministry of Food and Agriculture prepares to launch a new policy document for the irrigation sector, there are reports of a fast dwindling human resource capacity at the Ghana Irrigation Development Authority.
Currently the Chief Executive Officer (CEO), Daniel L. Lamptey is five months past retirement, but has been asked to stay on till a replacement is found for him. In the same vein his two deputies, Daniel Nyarko Ohemeng (In charge of Agronomy) and B.S Owusu deputy CEO in Charge of Engineering are also well past retirement.
“The more experienced staff have grown old and are retiring in unacceptable numbers, while recruitment for replacement has not been allowed in the immediate past years”, said the Minister for Food and Agriculture, Kwesi Ahwoi when he inaugurated the new Ghana Irrigation Authority (GIDA) Board in Accra last week.
According to Mr. Ahwoi the situation has created “a yawning gap” at the Irrigation Authority which needs to be filled with equally competent human resource.
Lampooning the situation the situation the minister observed that many of the positions at the ministry have been occupied by people in an “Acting” capacity for between one to eight years. Even two members of the board have been acting at top management positions at the agric ministry fro some time now. One of them, Dr. Kwame Ameza, has been an Acting Director for Extension services for over three years.
The minister observed that “This situation does not encourage young people in the service to aspire to reach top level positions”. “Is there a position in the Civil Service regulations tagged, ‘Acting’”?, the minister quipped satirically.
In addition to this misfortune, the Ghana Irrigation Development Authority has been without a board since 2003, and the minister cautioned that Ghana can no longer take irrigation for granted since recent global climate change and food crisis show that “we can no longer depend on rain-fed crop production if we must attain food security”
Recently, we published in the Volume 2, Number 22 issue of the Financial Intelligence under the headline, “Ghana trapped in “World Bank vicious cycle” the high price the nation has been paying for the freeze on recruitment in the public sector.
The story specifically mentioned the agricultural sector as one of the hardest hit by this policy. Today the Minister for Agriculture, Hon Kwesi Ahwoi has made the same observation.
Meanwhile the Hon. Kwesi Ahwoi has announced that as part of its medium term program for infusing new life back into the irrigation sector of agricultural industry, the Ministry of Food and Agriculture will soon launch a new irrigation policy document for the country.
The document which is currently in an advanced stage of finalisation is expected to provide strategies and regulatory measures necessary for the growth of the sector.
Disclosing this at the inauguration of the board for Ghana Irrigation Authority, Minister for Food and Agriculture Kwesi Ahwoi said the new policy among other things takes into account the aspirations of irrigators in both the public and private sectors.
Mr Ahwoi said the new policy also seeks to make operation and maintenance of irrigation projects more participatory through the involvement of farmers in all aspects management at all levels.
“This will improve cost recovery and ultimately enhance the performance of the sub-sector and thereby ensure a more sustainable management of both the facilities and the water resources”, the minister promised.
The minister tasked the board to make budgetary allocations for the maintenance of the irrigation dams. He observed that most of the dams have their canals silted with weeds and debris. This trend, he tasked the board to reverse by making adequate budgetary allocations for constant maintenance of the dams.
The board is under the chairmanship of Mallam Issah Seidu, a former Senior Director at the Ministry and Ghana’s former representative at the World Food Programme in Rome. It has Richmond Evans Appiah, (Irrigation Department) Awuah Peasah, (from Ministry of Finance) Dr. Kwame Amezah( Ministry of Agriculture) Dr. Micarious Yanguory (University of Ghana) and Daniel Adjetey Adjei (Ghana Water Company Ltd) as members.
The other members are Dr. Joseph Feening (CSIR) Dr Kwabena Kankam Yeboah, Kpembewura Kibashi, Nana Kwabena Agyei Baah and Mr. Daniel L. Lamptey.
By: Justice Lee Adoboe
Currently the Chief Executive Officer (CEO), Daniel L. Lamptey is five months past retirement, but has been asked to stay on till a replacement is found for him. In the same vein his two deputies, Daniel Nyarko Ohemeng (In charge of Agronomy) and B.S Owusu deputy CEO in Charge of Engineering are also well past retirement.
“The more experienced staff have grown old and are retiring in unacceptable numbers, while recruitment for replacement has not been allowed in the immediate past years”, said the Minister for Food and Agriculture, Kwesi Ahwoi when he inaugurated the new Ghana Irrigation Authority (GIDA) Board in Accra last week.
According to Mr. Ahwoi the situation has created “a yawning gap” at the Irrigation Authority which needs to be filled with equally competent human resource.
Lampooning the situation the situation the minister observed that many of the positions at the ministry have been occupied by people in an “Acting” capacity for between one to eight years. Even two members of the board have been acting at top management positions at the agric ministry fro some time now. One of them, Dr. Kwame Ameza, has been an Acting Director for Extension services for over three years.
The minister observed that “This situation does not encourage young people in the service to aspire to reach top level positions”. “Is there a position in the Civil Service regulations tagged, ‘Acting’”?, the minister quipped satirically.
In addition to this misfortune, the Ghana Irrigation Development Authority has been without a board since 2003, and the minister cautioned that Ghana can no longer take irrigation for granted since recent global climate change and food crisis show that “we can no longer depend on rain-fed crop production if we must attain food security”
Recently, we published in the Volume 2, Number 22 issue of the Financial Intelligence under the headline, “Ghana trapped in “World Bank vicious cycle” the high price the nation has been paying for the freeze on recruitment in the public sector.
The story specifically mentioned the agricultural sector as one of the hardest hit by this policy. Today the Minister for Agriculture, Hon Kwesi Ahwoi has made the same observation.
Meanwhile the Hon. Kwesi Ahwoi has announced that as part of its medium term program for infusing new life back into the irrigation sector of agricultural industry, the Ministry of Food and Agriculture will soon launch a new irrigation policy document for the country.
The document which is currently in an advanced stage of finalisation is expected to provide strategies and regulatory measures necessary for the growth of the sector.
Disclosing this at the inauguration of the board for Ghana Irrigation Authority, Minister for Food and Agriculture Kwesi Ahwoi said the new policy among other things takes into account the aspirations of irrigators in both the public and private sectors.
Mr Ahwoi said the new policy also seeks to make operation and maintenance of irrigation projects more participatory through the involvement of farmers in all aspects management at all levels.
“This will improve cost recovery and ultimately enhance the performance of the sub-sector and thereby ensure a more sustainable management of both the facilities and the water resources”, the minister promised.
The minister tasked the board to make budgetary allocations for the maintenance of the irrigation dams. He observed that most of the dams have their canals silted with weeds and debris. This trend, he tasked the board to reverse by making adequate budgetary allocations for constant maintenance of the dams.
The board is under the chairmanship of Mallam Issah Seidu, a former Senior Director at the Ministry and Ghana’s former representative at the World Food Programme in Rome. It has Richmond Evans Appiah, (Irrigation Department) Awuah Peasah, (from Ministry of Finance) Dr. Kwame Amezah( Ministry of Agriculture) Dr. Micarious Yanguory (University of Ghana) and Daniel Adjetey Adjei (Ghana Water Company Ltd) as members.
The other members are Dr. Joseph Feening (CSIR) Dr Kwabena Kankam Yeboah, Kpembewura Kibashi, Nana Kwabena Agyei Baah and Mr. Daniel L. Lamptey.
By: Justice Lee Adoboe
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