EDITION. Et0411 MONDAY 11 JUN. - SUNDAY 17 JUN. 2018
MiDA rolls out Energy Efficiency activities under Compact II EDITION: Et0411 MONDAY 11 JUN. - SUNDAY 17 JUN. 2018. Reliable Indepth Informative GHC 2.00 / US$ 1.00 he Millennium Development initiatives seek to address the Authority (MiDA), Ghana, is constraints to the supply of adequate Mobile money now biggest Ts e t t o r o l l o u t v a r i o u s and reliable power, while the EEDSM programmes under its Energy project would signicantly reduce E f c i e n c y a n d D e m a n d S i d e peak demand, ensure adequate non-cash payment platform Management (EEDSM) project, all supply for all and reduce investments aimed at ensuring energy efciency needed in expensive additional ...more mobile money payments and conservation. generation facilities. The EEDSM Project, a component The EEDSM, one of the six projects under the Ghana Power Compact, making up the Compact II, is expected than cheques, debit cards etc. also known as Compact II, has been t o i m p l e m e n t s e v e r a l p o l i c y By Elorm Desewu 2017. The number of mobile increase to 23,947,437 in designed to directly support Ghana's initiatives and programmes that money accounts increased to December 2017 compared with sector strategic objectives to achieve would ensure energy efciency and he latest report on 23.9 million in 2017 compared 19,735,098 in December of the power supply sufciency, including conservation among Ghanaians. P a y m e n t S y s t e m with 12.5 million bank accounts previous year. exports to neighbouring countries. During a media brieng lst week in Oversight by the Bank of in 2017 The value of retail payments The activities expected to be Accra, Mr Sylvester Ayayee, Project T Ghana, (BoG) unveils that Total mobile money oat excluding cash increased by completed within the ve-year Manager of EEDSM at MiDA, said a Mobile money has overtaken balances as at December 2017 43.18 percent to GH¢381.43 lifespan of the whole Compact II total amount of 25.4 million dollars cheques as the main non-cash n e a r l y d o u b l e d t o billion in 2017 from GH¢266.39 project, are to help Ghana cut wastage was being allocated to undertake the retail payment instrument in GH¢2.3billion compared with billion in 2016. The growth in and save more than 30 to 70 per cent of various activities and initiatives terms of volume of transactions GH¢1.3 billion in December the value of the retail payment energy consumption within the under the EEDSM project. with 981.6 million transactions 2016. Similarly, the number of instruments was on account of period. He said the activities had been at the end of 2017. registered mobile money increases in the value of mobile The ve-year Compact II is designed g r o u p e d i n t o f o u r , n a m e l y : This was followed by Debit accounts recorded a signicant Contd. on pg.4 Governor of the Bank of Ghana, Dr Ernest Addison to create a self-sustaining energy Development and Enforcement of Card with a transaction volume sector in Ghana by reforming laws Standards and Labels activity; of 60.4 million; through ezwich and regulations needed to transform Improved Energy Auditing activity; cards -8.4 million; cheques -7.3 Foreign OMCs petition gov't over the country's power sector. Education and Public Information million; and Direct Credit T h e C o m p a c t I I p r o j e c t s a n d Contd. on pg.4 Transfer -6.1 million in 2017. However, in terms of value of the new local content policy transactions undertaken in Ghana losses US$200m yearly By: Adnan Adams Mohammed 2017, cheques continued to policy which is yet to be Limited, Total Petroleum They explained that, the draft to tax evasion in petroleum maintain its lead with GH¢179.6 e y p l a y e r s i n t h e operationalized. Ghana Limited, Vivo Energy local content policy document billion while mobile money i n t e r n a t i o n a l T h e m u l t i n a t i o n a l O i l Ghana Limited; and Puma does not reect and cannot downstream – NPA followed closely with GH¢155.8 Kdownstream petroleum Marketing Companies (OMCs) Energy Distribution. achieve the right balances billion. products trading operating in which signed the petition sent The joint petition expressed between the competing interest The preference for mobile the country have registered to the Energy Minister, Mr reservations about the draft of the local Ghanaian entities By: Adnan Adams Mohammed the Bulk Road Tracking System, the money services over traditional their displeasure with the newly Boakye Keremanteng Agyarko local content policy for the and the foreign investors' t is estimated that, the country integration of the Ghana Community bank services persisted during drafted industry local content i n c l u d e d : E n g e n G h a n a downstream sector. interest which have an impact Network and GRA Monitoring l o s e s o v e r U S $ 2 0 0 m i l l i o n on the Ghanaian economy. P l a t f o r m i n t o t h e E n t e r p r i s e annually in tax revenues due to The petition was jointly signed I Relational Management System for the nefarious activities of service by: Mr Henry Akwaboah, harmonisation of information and providers of the petroleum sector in Managing Director, Engen monitoring. order to evade tax. BoG sells dollars, expects Ghana Limited; Mr Olivier van Mr Tampuli made this known at the This is a staggering gure which could Parys, Managing Director, s e c o n d e d i t i o n o f t h e G h a n a do a lot for the country in terms of Total Petroleum; Mr Myles International Petroleum Conference infrastructure development and Bouvier-Baird, Managing provision of social services to the in Accra on the theme: ''Realising the local currency to recover Director, Puma Energy; and Mr Vision of a Petroleum Hub''. citizenry, but just enters into the Ebenezer Faulkner, Managing The four-day event was under the p o c k e t s o f t h e f e w g r e e d y Director Vivo Energy. auspices of the Energy Ministry and hana's central bank market and we've done some “The Bank of Ghana is also had built-up its reserves to $8.1 businessmen. The four multinational OMCs G h a n a C h a m b e r o f B u l k O i l expects the local cedi signicant interventions in the engaging the management of billion by the end of May. This necessitates stringent measures further explained that even Distributors, in collaboration with the currency to recover as p a s t t w o w e e k s . T h a t ' s MTN Ghana to ensure that any “We are in good shape with our by the industry regulator to help curb G though, “we agree that the National Petroleum Authority and it sells more dollars to local beginning to lead to some FX outows arising from the economic fundamentals ... we this nefarious activity of cartels in the petroleum downstream sector Association of Oil Marketing banks, it said last week. stability,” said Opata. transaction are done in a have adequate reserves and fuel trading business in the country. in Ghana currently faces Companies. The cedi has declined steadily A market note published by phased and orderly manner,” these global and domestic In this vein, the Chief Executive several challenges we are of the It brought together key stakeholders against the dollar since the end Barclays Bank Ghana said the said Opata. developments do not yet pose a Ofcer of the National Petroleum o p i n i o n t h a t t h e in the petroleum downstream sector of April, partly due to broader central bank sold around $30 Ghana, which exports cocoa, threat to ination in Ghana in Authority, Mr Alhassan Tampuli, has i m p l e m e n t a t i o n o f t h e including policy-makers, regulators weakness in emerging markets million on Wednesday last gold and oil, is in the nal year the near term,” he said. said, the Authority has rolled out a r b i t r a r y l o c a l c o n t e n t and oil service providers, to and to a rise in the American week. of a $918 million credit deal stringent measures to tackle the requirements will actually deliberate on policies and trends in currency. Opata said the cedi's recent signed in 2015 with the p r o b l e m h e a d - o n , i n c l o s e make it harder to overcome the the sector, as well as discuss pertinent Steve Opata, head of nancial slide was also caused by International Monetary Fund collaboration with the Ghana challenges as in any vibrant issues affecting the industry in the bid markets at the central bank, told concerns over the potential to reduce its budget decit, Revenue Authority (GRA), the Navy economy.” to guide decision-making. Reuters the bank was acting to repatriation of funds by the ination, debt and to stabilise and other relevant security agencies. They continued: “The presence The participants are expected to come stem the depreciation, which Ghanaian arm of South African the local currency. Some of the measures include of multinational companies traders estimate at nearly 3 mobile rm MTN, which Opata said the cedi, which intensication of digital solutions like Contd. on pg.4 such as ours in providing high percent since January. launched an initial public declined by around 5 percent quality fuels and lubricants to “ W e h a v e i n c r e a s e d o u r offering of nearly $750 million last year, was expected to Published by Black Pod Investment Ltd., P. O. Box 3460, Accra. Location: Fanofaa Street, Kokomlemle. Tel: (+233) 0244-279772 Email: [email protected]. r e t a i l a n d c o m m e r c i a l www.economytimesgh.com. Managing Editor: Elorm Desewu. Editor In Chief: Toma Imirhe. News Editor: Adnan A. Mohammed NMC/C.I239/10/1119. Sales/Marketing - 0268-131510 presence in the interbank late last month. strengthen in 2018 as Ghana Contd. on pg.4 Edition Et0411 MONDAY 11 JUN. - SUNDAY 17 JUN. 2018 Edition Et0411 MONDAY 11 JUN. - SUNDAY 17 JUN. 2018 FEATURE 23 BoG Covers $461 Million The Plot Preceding Kelni-GVG Another controversial of GCB Takeover Liability By Michael Nii Yarboi Annan |MD Object Consult e h a v e a n intact in the hands of the telecom tax revenue By Moses Mozart Dzawu E x e c u t i v e Commissioner-General but President with carefully put mind to it, CB Bank of Ghana W assessment contract overwhelming powers that Section 14 (4) was so affected Ltd. said it received a stretches from end-to-end, a by the Amendment. The et again, a erce controversy has erupted over a G2.2 billion-cedi ($461 parliament that is basically power to award the contract contract given to a private company by government million) bond from the central controlled by the same to provide security over bank for taking over the assets t o c o m p u t e r e v e n u e s m a d e b y t h e Executive and Judiciary we revenue for the purposes of Y of two failed lenders in 2017. telecommunications network operators in order to ensure must be prepared to trigger it tax was taken from the that they are fully assessed with regards to their income tax Ghana's biggest lender by powers but, must be equally Commissioner and place at obligations. The contract awarded recently to Kelni GVG branch network acquired the patient with time albeit, we the chamber of the politician by the incumbent government has set off a furor similar to liabilities and some assets of the contracts awarded Subah Infosolutions and Afriwave UT Bank Ltd. and Capital Bank must be rich. My interest is (Minister of Finance and by the immediate past political administration for Ltd. in August after the not what exists in the C o m m u n i c a t i o n ) - t h e basically the same purpose. companies collapsed as they contract, which, we are all question is why? And your Actually, this time around, the fallout from the controversy failed to meet the central crying over, but the plot laid guess is as good as mine. already shows signs of being more antagonistic than the bank's requirements for capital to be abused by the ever- This is where those we voted previous ones – the Minister for Communications, Ursala adequacy. powerful Executive. I would for to check the Executive The Bank of Ghana issued a Owusu has announced that she is suing musician turned have missed it, if not for one were suppose to protect us, outspoken political commentator, A-Plus, over public bond, which it gave to GCB to compensate for the shortfall of more glance of faith the devil this is when we should have comments he has made regarding the contract. would have gone unnoticed. cried like we are doing today The President Nana Akufo-Addo administration, while UT and Capital's assets against “We did that because of the unchanged at 6.30 cedi in Accra Communication Service Tax about Kelni-GVG, but we still in opposition during the run up to the 2016 elections, their debts, GCB Head of initial jump in withdrawals, on Monday after rallying 25 Act failed our conscience, our vehemently criticized its predecessor, the Mahama Treasury Anthony Asare said but eventually the bank percent since the beginning of administration for the structure of the Subah and Afriwave Monday in an interview in the b e c a m e c a s h r i c h f r o m the year, valuing the company There is one thing I have yet duty and most of all we failed contracts and the manner in which they were awarded. capital, Accra. operations,” Asare said. at 1.7 billion cedis. realized about the Ghanaian o u r n a t i o n , G h a n a . The bond carries a coupon of Ghana's banking regulator Indeed, the core of the incumbent's defence of its recently The central bank's head of political regime; wrong, Therefore, weep not in 12 percent and matures in revoked the licenses of UT and given contract is that it is better than the two given by its treasury, Stephen Opata, corruption, bad corporate Ghana for the horses have 2027, he said. Capital as it is stepping up predecessor for the same purpose. wasn't available to comment governance etc. are easily already bolted from the GCB also took 400 million when contacted at his ofce. efforts to bolster a sector beset This newspaper does not want to get into a comparison of passed on to successors and stables. cedis in overnight loans from b y b a d l o a n s a n d p o o r the respective contracts which indeed is hugely E s i H a m m o n d , a the central bank on two governance. Lenders in the trust me, they continue as if Assurance Services controversial itself. Rather, we simply wish to point out spokeswoman for the central occasions in October to cope West African nation have to it's was their personal The layman might be at a loss some aspects of the latest contract which call it into bank, couldn't immediately with increased withdrawals by comment when contacted by meet a December-deadline to project. The question is what when the term assurance is question on a stand-alone basis. the customers of UT and phone. raise their minimum capital c h a n g e d f r o m S u b a h used as it has been used in the Most importantly we wonder why the Ministry of Capital, Asare said. G C B ' s s h a r e s c l o s e d levels more than threefold. Infosolutions Limited to Kelni-GVG contract, but let Communications usurped the responsibility of the National Communications Authority in identifying the Kelni-GVG? My answer will shave its beard, and its plain company to be given the contract and then going on to b e t h e c o m m u n i c a t i o n face is auditing. Government actually award it. The NCA is the telecom sector's direct Ghana Gas struggling due to VRA's service tax act is what a g e n c i e s h a v e v a s t regulator, reporting to the Ministry. We believe that if the changed. experiences contracting incumbent government wants to implement best inability to pay debt - Ben Asante Section 4 (1) and (2) of the a s s u r a n c e s e r v i c e s a governance practice as it continually claims it does, it CST Act, 2008 (Act 754) put knowledge I obtained rst- ailure of the Volta River leaving a substantive amount of this money, he lamented.” should allow the respective state institutions to perform the administrative and hand working with one of the Authority (VRA) to pay still unpaid. Mr. Asante is however hopeful the roles and responsibilities they have been tasked with management responsibility some $500 million it Speaking on the sidelines of that the VRA will defray the best audit rms in Ghana. under the existing legal framework for governance, at least F at the doorsteps of the H o w c o u l d t h e y h a v e o w e s t h e G h a n a G a s the Ghana International debt in the coming days as until when it can have that framework changed through Commissioner-General and forgotten one requirement due legal process to t its preferences. Indeed, the Ministry Company is said to be having P e t r o l e u m C o n f e r e n c e talks are underway between further so in Section 14 (3) of that has never been missed of Communication's usurping of the NCA's responsibility a toll on the production of gas (GhIPCON), Chief Executive the two companies on how to in this regard opens it up to accusations of vested interest, in the country. of the Ghana National Gas solve the problem. that same Act gave the by government and its whether at an institutional or personal level. The debt which has been Company, Dr. Ben Asante Meanwhile, a 2015 report by Commissioner General the agencies in procuring the This in turn, tends to lend further credence to accusations lingering on for some years said government's failure to the World Bank indicates that authority to “request from services of assurance or audit that it has been paying Kelni-GVG its monthly contract fee now, accumulated as a result pay for services rendered by corruption, unnecessary taxes any person in writing to rms - their experience in when it has not actually commenced executing the contract, of the supply of lean gas for his outt is having negative as well as the duplication of provide security that the similar assignment must be simply because of vested interests. The Ministry itself power generation by the gas impact on their operations. roles of agencies regulating the commissioner considers clearly exhibited by their admitted less than a fortnight ago that MTN, Vodafone and company. “The challenge is that we gas industry contributed to the adequate for the protection proposal. Again, what As at May 2017, the VRA had supply to customers and they low investor condence in the Airtel-Tigo, which between them account for more than of revenue”. This is the happens to international paid only 30% of the total debt don't pay us. Our brothers and gas industry. 90% of the telecom trafc in Ghana were yet to sign up to reason why the Ghana it owes Ghana Gas Company, sisters at VRA owe us a chunk Mr. Asante believes this can be standards for procuring such the new revenue data identication system created by the R e v e n u e A u t h o r i t y services; sorry, I have just contract, yet Kelni-GVG had already started receiving corrected if the roles of c o n t r a c t e d S u b a h been reminded this is Ghana monthly contract fees. agencies managing the sector The controversy that the award and implementation of the are streamlined. Infosolutions Limited which, where anything goes. new contract has generated, at both the political and H e e x p l a i n e d t h a t “ t h e w a s s u b s e q u e n t l y Focus and Mind technical levels, make it hard to distinguish accurately situation is not the best. We terminated effective May 5, We can be better if we renew between truths, half truths and complete falsehoods being have taken some of the best 2016 our mind and by extension claimed by all of the several different interested parties steps to get clarity in terms of T h e n c a m e t h e our deed to transform involved in the ongoing furor. But this is why any new who does what in the gas value Communication Service Tax Ghana. We can be a people of contract being given should have been completely and chain. Right from who is doing (Amendment) Act, 2013 (Act detail and substance rather irrefutably above board in the rst place. aggregation, who is doing 864) which did not affect than form if we all put our s h i p p i n g , w h o i s d o i n g The contract between government and Kelni-GVG is not, Section 4 (1), (2) and Section minds to it. There is nothing transportation and processing even if it is better than those it replaces, as is claimed by 14 (3) as described above. wrong with the contract as it ofcialdom. And that is why it simply is not good enough and who is doing the sales' Thus, the administration and has been said but there is under the current circumstances. p a r t s h o u l d a l l b e streamlined.” management of the Tax was everything wrong in the plot. 22 Edition Et0411 MONDAY 11 JUN. - SUNDAY 17 JUN. 2018 FEATURE Edition Et0411 MONDAY 11 JUN. - SUNDAY 17 JUN. 2018 Ghana targets being Petroleum hub for West Africa… The rot must go: Good corporate By: Adnan Adams Mohammed increase the presence of major or Ghana to achieve its vision international oil trading and Over US$50 billion FDI needed of becoming the petroleum storage companies, create regional the country's rening capacity Mr Agyarko said upon extensive environment, investors will governance to transform Ghana Fhub for the West African sub- trading champions and encourage beyond current levels, both to consultation and assessment by choose Ghana and partner with us region, as announced by the Vice joint ventures between local and meet domestic demand and for the task force, government was P r e s i d e n t D r M a h a m u d u to develop infrastructure such as By Prince Moses and Sampson Akligoh Bawumia, the country will need international companies for export. It is therefore important convinced that the nation had the renery, tank farms, pipelines, investment inows of about US$50 knowledge transfer and wealth that our PSPs especially the BDCs capacity of developing petroleum marine facilities, expanding our h a n a ' s r e c e n t that country's major crises in billion. creation. It will provide value change their business model to infrastructure into a hub in the export capabilities and other allied The vision, which is one of p o s i t i v e recent decades, one of a d d i t i o n i n o u r p e t r o l e u m respond to the hub plans, as there sub-region. facilities required to make our hub Government's strategic anchor m a c r o e c o n o m i c Africa's largest economy, G initiatives, would also lead to the industry,” he added. would be more products for He, therefore, urged the petroleum a reality,'' Mr Boakye stated. gains have been achieved on Nigeria, suffered a banking establishment of Ghana as a Alluding to the expected increase in export than their current model of service providers to upgrade their The government has therefore t h e b a c k o f p r u d e n t sector crisis in 2009. Much Petrochemical hub to supply Ghana's rening capacity, Vice importing the shortfalls in skills and business capacity to promised to provide favourable rened petroleum products to meet management. Locking-in like the U.S., Nigeria's crisis President Bawumia urged local production.” partner with the foreign direct scal environment and incentives the demands of the West African these gains calls for the resulted from a corporate i n d u s t r y p l a y e r s i n c l u d i n g To that end, the Energy Minister investors to ensure a fair balance to attract the right investment into enforcement of practices that sub-region and eventually the g o v e r n a n c e g a p t h a t whole continent, and further Petroleum Service Providers (PSPs) assured Ghanaians and the and signicant value retention of the petroleum downstream limit shocks. As Finance engendered its own set of develop Ghana's petroleum and Bulk Oil Distributors (BDCs) to investors that, his outt would benets in the country. industry. Minister, Ken Ofori-Atta, is nancial woes. downstream sub-sector, according re-examine their business models to work diligently to achieve the ‘'Today, nancing for new The minister is optimistic that the l e a d i n g t h e c h a r g e t o Poor governance structures to the Vice President. take advantage of the expected vision of the government, adding reneries has become difcult to intended petroleum hub would transform Ghana into a are mostly responsible for However, Mr Boakye Agyarko, the Energy Minister has said, over increase in business and take the that, a petroleum task force, which obtain, especially as some existing compete favourably with other regional nancial hub by the inability of frontier US$50 billion in foreign direct necessary steps, including possible has been set up by the ministry to reneries across the world are trading centres across the world, building robust corporate m a r k e t s - b o t h a t t h e investment (FDI) would be needed mergers and acquisitions, to see to the realization of the being shut down due to low w h i c h w o u l d i n c r e a s e governance structures based sovereign and corporate to build a relevant petroleum position themselves to become government's vision, had visited margins. g o v e r n m e n t ' s r e v e n u e s t o on corporate citizenship is level - to develop strong infrastructure such as oil reneries, m u l t i n a t i o n a l o p e r a t o r s . some countries that had made ‘'But I believe with the right non-negotiable. capital markets. Regardless, tank farms, pipelines, marine accelerate economic growth. facilities and other allied facilities “The development of a hub in h e a d w a y i n p e t r o l e u m strategies and value positioning, Democratic institutions even large economies cannot in corporate governance. requirements by December added to the corporate to make Ghana a petroleum hub. Ghana will require an increase in infrastructure. c o u p l e d w i t h t h e r i g h t thrive in an environment protect themselves from the And in an effort to “mop up 2018. governance portfolio, setting He said the estimated amount was w h e r e t h e r e i s g o o d i n s i d i o u s r o t o f p o o r the mess inherited from the Transferable lessons the direction for responsible reached after the assessment made g o v e r n a n c e a n d g o o d corporate governance. last administration”, the Looking at transferable corporate citizenship. b y a p e t r o l e u m t a s k f o r c e inaugurated by the government corporate governance is key Strengthening nancial minister sees minimum lessons from across Africa Giving back to society is a to strengthening democracy. last year to develop a petroleum Rosneft new LNG deal not m a r k e t a n d b a n k i n g capital increases for banks, and beyond, a move by m a i n s t a y o f c o r p o r a t e infrastructure master plan and Transparency, a major good r e g u l a t i o n s r e m a i n s a insurance and the securities Nigeria's stock exchange to citizenship. “We need to road map towards the realisation of governance practice, both in signicant challenge, and market, as important to s o o n r a n k a l l l i s t e d encourage a triangular the vision. transparent – industry expert the public and private Ghana's nancial sector is no strengthening impaired companies on corporate understanding between These funds are supposed to come f r o m p u b l i c a n d p r i v a t e By: Adnan Adams Mohammed LNG landed in Tema and what will sectors, tends to favour stranger to gaps in its banks. The plan is to enable g o v e r n a n c e m a y w e l l corporates, social actors taxation, environmental i n v e s t m e n t s o f w h i c h t h e be the cost of the regasication, c o r p o r a t e g o v e r n a n c e credit to the private sector; a provide the supervision (including labour), and government is expecting to raise 10 h e G h a n a N a t i o n a l that is, throughput cost? p r o t e c t i o n , a n d s o c i a l structures. A 2015 Asset key player in government's needed to ensure efciency. government within the percent to support the construction Petroleum Corporation Also, it is important to know the responsibility; three elements Quality Review, conducted commitment to growth and Ghana is also embarking on sustainability framework,” of road networks, electricity and T(GNPC), last week, signed a d e a d l i n e f o r t h e L N G that drive some of the world's by Bank of Ghana, exposed jobs. a raft of reforms to set up a said Ofori-Atta. water facilities. n e w g a s s a l e a n d p u r c h a s e regasication plant to become most successful economies. nine banks that were on their The government announced this at agreement (GSA) deal with Rosneft operational, given that, the country Bank of Ghana's recently rating agency to rate banks Before the government for the same natural gas supply i s a l r e a d y r e c e i v i n g Ofori-Atta is leading reforms the just ended 2nd Edition of the last legs and barely solvable. r e l e a s e d c o r p o r a t e and insurance companies. began rolling out the 'Free Ghana International Petroleum agreement it had with Gazprom in 100mmscF/day from natural gas to open up Ghana's nancial In the last year alone, three governance directives serve “Such rankings could serve S e n i o r H i g h S c h o o l Conference held in Accra, last September last year. (at about US$6-7/mBTU) and system and make it more banks have faced the full as a vital authoritative as an incentive for good Initiative' (Free SHS), it was week. This means that, Gazprom has been Jubilee/TEN can deliver another transparent. rigours of the law. r u l e b o o k f o r l i m i t i n g corporate governance”, said n o t u n f o u n d e d w h e n “The Government of Ghana has a dropped by GNPC for Rosneft. 120mmSCF/day and when SGN Gazprom has more capacity and comes on stream in July, they will compression capability? This has respective companies. “Good corporate governance L o c k i n g - i n r e c e n t unfettered powers that may Ofori-Atta. This promises to pundits debated the rules of vision to develop Ghana as a hub capability in all regards than produce 170mmSCF, in all, there already been captured in GNPC The deal is expected to place Ghana is key to transforming macroeconomic gains is lead to imprudent banking strengthen shareholder engagement for corporates. for rened petroleum products for Rosneft, and it is therefore a will be a supply of almost 2018 budget at an estimated at the centre of West Africa's corporate organisations in e s s e n t i a l t o e n s u r i n g decisions and, by extension, rights and buttress the role A n e l e m e n t o f t h e i r the West Africa sub-region and the surprise to energy experts for 400mmSCF/day, enough to power amount of US$120 million. How rapidly growing energy market – frontier and transition irreversibility, and for that negative ramications. of institutional investors in c o r p o r a t e s o c i a l continent. The concept of a government to take this decision. 1500-2000MW plants (single cycle - much gas (in mmSCF/day) will be provide job openings and building However, a statement from GNPC combined cycle). able to ow from W2E?” he economies, and policies that matter, the enforcement The directives, which target the country. responsibility involved ' P e t r o l e u m H u b ' i s o n e o f local capacity. announcing the new deal with seek to plug gaps in weak s u c h m a j o r m i l e s t o n e Mr Mould, asked how soon the quizzed. The statement added that the two all regulated nancial Analysts argue that such a p r ov i di n g su p p or t f or Government's strategic anchor Rosneft said, “due to a corporate Floating Storage Regasication The GNPC statement indicated c o r p o r a t e g o v e r n a n c e companies also agreed to deepen enactments like the Public institutions, are both stern m o v e t o i n c e n t i v i s e outstanding but needy initiatives that would serve as a restructuring, Gazprom's supply Unit (FRSU) will be in the country, that, it has struck a 12-year natural t h e i r c o o p e r a t i o n i n t h e structures are essential to Financial Management Act a n d c a u t i o u s . T h e y corporates to practice good students. A bid to prevent new pillar of growth in the obligations had been assumed by replied that “this will depend on gas supply deal with Rosneft, a development of the upstream and Rosneft.” whether it is going to be newly R u s s i a n i n t e g r a t e d e n e r g y creating robust economies”, and the establishment of a authoritatively demand all governance could lead to the the Free SHS initiative from G h a n a i a n e c o n o m y , ” D r downstream sectors. But, Mr Alexander Mould, former built or the company has one that said Ofori-Atta at this year's nancial stability board concerned institutions to creativity and efciency eliminating contributions company. The deal is seen an Mr. Blay expressed optimism that Mahamudu Bawumia stated in his GNPC boss, has questioned the can be mobilized as soon as o p p o r t u n i t y f o r i n c r e a s e d through “this strong cooperation, A f r i c a C E O F o r u m i n p r o v i d e t h e r e q u i s i t e ensure that the positions of known to have characterised corporates made towards keynote address. transparency and adequate and possible.” investment in Ghana's oil and gas Ghana can also act as a gateway for Abidjan, Côte d'Ivoire. The governance structures to Board Chairs and Chief E a s t - A s i a ' s c o r p o r a t e education was the driving “The project will accelerate the relevant contract information “Where in Tema port will it be sector. Russian investment within the Africa CEO Forum, described contain risk in the nancial disclosure of the newly signed deal. located and will its location affect Under the agreement, Rosneft Executive Ofcers (CEOs) governance development. force behind the 'Voluntary growth of Ghana's petroleum wider West African region”. a s A f r i c a ' s D a v o s , i s system. Both enactments are are separate. Corporate citizenship Education Fund' in the 2018 This is because, the statement from current port activities?” he would deliver 250 million cubic Notably, Mr Sechin said it was the downstream sub-sector and make GNPC did not specify the details of queried. organised by Groupe Jeune being pushed by Ofori-Atta R e g u l a t e d n a n c i a l Corporate governance does Budget. feet of liqueed natural gas (LNG) beginning of a new phase of the it a major player in the economy whether GNPC will be losing in Another important element of the to a re-gasication terminal at the development cooperation between Afrique and counts the and his team. i n s t i t u t i o n s a r e a l s o not stop with traditional The Voluntary Education a n d c o n s e q u e n t l y e n s u r e terms of compensation to Gazprom, new contract which needs to be Tema Port, to be processed and Russia and Ghana. Bretton Woods' International The rule of law matters e x p e c t e d t o h a v e nancial dynamics. The whether the abrogation of Gazprom answered by the contract partners Fund speaks to the need to development of sustainable value, carried to the GNPC's Tema “Ghana has placed itself among Finance Cooperation (IFC) as Ofori-Atta is not daunted by independently led audit social and environmental e n g a g e c o r p o r a t e s i n was by a consensus or forced and is; who the promoter for this Metering Station. dynamically developing world wealth creation and the progress of one of its major sponsors. the challenge, what with his committees, on the one performance of corporates building human capital, and whether Rosneft has a direct link or increased infrastructure, is it The signing event took place at the economies with the energy industry.” dealing with Gazprom which GPHA or GNPC? sidelines of the just ended 26th St. U.S., Nigeria, Ghana uncompromising stance to hand, and risk committees, and stakeholders along could creatively harness the demand growing year on year,” he Vice President Bawumia explained would mean Gazprom would not Additionally, it is important to Petersburg International Economic stated. The 2008 nancial crisis that strengthen the country's on the other. value chains are also taken fund to invest in other be losing in anything from the initial note whether other infrastructures that, a successful implementation Forum – an annual Russian Dr. Ko Kodua Sarpong, CEO of hit the United States and banking sector and make It is likely the move may into account; the Sustainable strategic areas in education contract abrogation. Mr Mould is would have to be built to connect to business event, held in St. GNPC is quoted as saying, “we are of the project would, apart from shook the whole global Ghana a nancial hub as r e s t o r e s t a k e h o l d e r Development Goals (SGDs) like Science, Technology, therefore demanding further all the power plants in Tema. And Petersburg. happy to be working with Rosneft creating employment, have economy to its core was a p r o p o s e d b y t h e condence in the banking are clear about private sector E n g i n e e r i n g a n d clarication from GNPC to show whether, the WAPCO pipeline is Mr. Frederick Blay, the GNPC on this LNG transaction and adequate transparency of the deal. going to be used as part of the B o a r d C h a i r m a n , a n d I g o r poster child of lax corporate g o v e r n m e n t ' s system and encourage immense benets for the players in already the two parties are looking engagement. Mathematics (STEM), and However, to assess the cost distribution network for the Ivanovich Sechin, Chief Executive governance. As the U.S. was the industry as well as the nation as at greater cooperation and transformational agenda institutional investment in In recent times, corporate Technical and Vocational effectiveness of the Rosneft regasied LNG. Ofcer (CEO) and Chairman of the partnership in the upstream a whole. languishing in the backdrop (Ghana Beyond Aid). For the sector, as most banks social responsibility (CSR) Education Training (TVET). contract, the industry expert wants “When is the reverse ow, West to Management Board of Rosneft, sector”. of what is arguably among him, the rule of law matters seek to meet new capital and sustainability have been “The Petroleum Hub project will to know, what will be the cost of the East (W2E), to be completed with initialled the agreement for their Edition Et0411 MONDAY 11 JUN. - SUNDAY 17 JUN. 2018 Edition Et0411 MONDAY 11 JUN. - SUNDAY 17 JUN. 2018 FEATURE 21
Contd. from pg.20 MiDA rolls out Energy... purpose of the preceding This assertion is backed by the does not extend to vehicles The Ghana Revenue Authority Contd. from back pg. Foreign OMCs petition gov't... installed with solar rooftops. Where a tax ofcer has reason to paragraphs including by way of provisions of Customs Act. a f t e r s a m e h a v e b e e n is a statutory establishment activity; as well as the Demand Mr Ayayee said the education and believe that a person breaking into a premises, place Section 56 of Act 891 provides r e g i s t e r e d . S e c t i o n 1 2 4 whose actions and decisions Side Management Infrastructure. public information activity would Contd. from front pg. through technology transfer “unfair to multinationals as has committed an offence under or asset that may reasonably as follows: provides as follows: are subject to judicial review by H e n o t e d t h a t u n d e r t h e include the introduction of energy customers is essential to the “To ensure an impact on our investors. It will stie the evolution a tax law, contain evidence referred to in A vehicle licensing authority A conveyance used in the the High Court of Ghana. development and enforcement of efciency and conservation in the e c o n o m i c g r o w t h w h i l s t b u s i n e s s o p e r a t i o n s a n d of our business and also be a will abscond before the person paragraph (a). e s t a b l i s h e d u n d e r a n i m p o r t a t i o n , a t t e m p t e d Article 33(1) & (2) of the 1992 s t a n d a r d s , M i D A w a s school curriculum of pre-tertiary increasing the skills and expertise ultimately on the economy as a d i s i n c e n t i v e t o a n y n e w is prosecuted for an offence A reading of section 88 and enactment shall not register a importation, landing, removal, C o n s t i t u t i o n o f G h a n a c o l l a b o r a t i n g w i t h o t h e r s c h o o l s t o h e l p i n c u l c a t e of the local workforce. whole, and to ensure standards multinational OMC entering the under a tax law, or section 33 of Act 915 reveals the motor vehicle unless the movement, exportation or provides as follows: regulatory bodies including the behavioural and attitudinal “It is important that developing t h a t g o w i t h t h e b r a n d , country”. will destroy, tamper with or following differences: applicant produces to the attempted exportation of un- Where a person alleges that a Energy Commission, Ghana, and c h a n g e i n p u p i l s a n d multinational groups have The multinationals therefore this new policy does not initiate otherwise dispose of evidence Unlike section 33, any ofcer of vehicle licensing authority the customer, forfeited, prohibited provision of this Constitution the Ghana Standards Authority students.There would also be a policy directives that are likely to policies which require them to called for broader consultation of an offence under a tax law, the GRA can invoke section 88. customs entry and other or restricted goods is liable to on the fundamental human (GSA), to revise and develop new direct public education on the new negatively impact on Foreign retain control over their afliates”. with stakeholders on the draft local Whereas Section 88 can be related customs documents. forfeiture to the State rights and freedoms has been standards for 20 energy consuming regulations and standards Direct Investments and erode any The multinational OMCs stressed content policy for the downstream the tax ofcer shall apply to a products and appliances that governing the use of electrical gains to be derived from such that, restricting the markets in the s e c t o r t o a v o i d i n d u s t r i a l m a g i s t r a t e f o r a n o r d e r invoked upon an application to The Commissioner-General Where goods are forfeited or or is being or is likely to be i n c l u d e d a i r c o n d i t i o n e r s , appliances and gadgets, for investment for the sector”. various areas such as Aviation hostilities. authorising that tax ofcer to a Magistrate, section 33 can be shall issue a Certicate of become liable to forfeiture contravened in relation to him, television sets, and other electronic people to appreciate the need to T h e m u l t i n a t i o n a l O M C s Marketing, and Bunkering is take any of the actions set out in invoked without the assistance Payment of Duties and any under this Act, a person who is then, without prejudice to any gadgets, and solar products as use energy efciency gadgets. maintained though that they fully subsection (2). of a court. other document as specied by involved in the act or omission other action that is lawfully well. On the Demand Side Management supported the objectives of a local W h e r e t h e m a g i s t r a t e i s On the application of the the Commissioner-General to a that renders the goods forfeited available, that person may He said an AC testing facility was Infrastructure component, Mr content policy which was aimed at satised that there is a serious provisions of section 88, where person who purchases a motor or liable to forfeiture shall incur apply to the High Court for being built at the GSA to enable Ayayee said that would involve creating local Ghanaian jobs and Mobile money risk to the collection of tax or the an ofcer of the GRA seeks to vehicle at an auction sale under the penalty provided by law in redress. such appliances to be re-tested in streetlight replacement activity, developing the economy. administration of justice, the enter a premises or place to the Act, for the purpose of respect of the act or omission The High Court may, under Ghana when they are brought into on all the ceremonial roads within “Some of us have had a presence s e a r c h a n d / o r s e i z e a n y registration of that motor o r , w h e r e n o p e n a l t y i s clause (1) of this article, issue the country, thereby enforcing the the Accra East and West where, in the Ghanaian market for many magistrate may make an order law, saying, at the moment such the lights would be replaced with now biggest... authorising the tax ofcer, with document or asset without a vehicle. provided shall incur a penalty such directions or orders or decades and are listed on the local appliances were being tested only LED lighting systems that would stock exchange representing the assistance of the police, to prior order of a magistrate, that Section 58 of Act 891, which in a sum equal to two hundred writs including rites or orders Contd. from front pg. abroad. be long lasting. p r i v a t e a n d i n d i v i d u a l enter a premises or place and ofcer shall be deemed to be grants the power of seizure, percent the duty payable on the in the nature of herbs as corpus, Mr Ayayee noted that there would Ms Pamela Djamson-Tettey, shareholders and have always money services recording 98.50 Payment of SSNIT pensions by the d i s t r a i n a s s e t s t h a t m a y acting ultra vires and any action provides as follows: goods seized or forfeited. c e r t i o r a r i , m a n d a m u s , a l s o b e e l d m e t e r i n g a n d Director of Communications and been committed to promoting an percent and e-zwich 45.22 Bank of Ghana on behalf of reasonably provide evidence subsequent to that ultra vires A person shall no import a From the above provisions, it prohibition, and quo warranto monitoring studies to collect Outreach, MiDA, said the 25.4 effective local valued-added percent. Government continued as the that an offence has been action shall be declared a nullity right-handed steering motor will be safe to conclude that the as it may consider appropriate baseline data of energy appliances million-dollar EEDSM funding policy for many years. The Ghana Inter-bank Settlement main contributor to the growth in committed under a tax law; b y a c o u r t o f c o m p e t e n t vehicle into the country unless Commissioner General nor his for the purposes of enforcing or in 1,000 households within the was from the rst tranche of 300 “This has created local job (GIS) system which is Ghana's direct credit transactions. distrain and search a premises, jurisdiction. approved by the Minister ofcers have no power to seize securing the enforcement of country to know their energy uses million dollars fund under the opportunities and has developed Real Time Gross Settlement Express Automated Clearing SEIZURE OF VEHICLE BY Subject to the provisions of this vehicles which have been any of the provisions on the to inform government policies and Compact II for Ghana, which local knowledge and expertise (RTGS) system, continued to House (ACH) direct credit, a place, vehicle or other asset on CUSTOMS programmes. totals 498.2 million dollars throughout the whole supply provide platform for high value medium of clearing that ensures or in which the tax ofcer A c t , t h e C o m m i s s i o n e r - registered by the DVLA for fundamental human rights and Under the Energy Auditing support in all, for different project chain. Indeed, we are making payments. funds are cleared on the same day, believes on reasonable grounds There has been much talk about General shall seize a prohibited non-payment of duty because freedoms to the protection of activity, three Energy auditing activities. substantial investments every T h e t o t a l v o l u m e o f G I S recorded a signicant growth of that there is evidence of an the nationwide exercise by the motor vehicle imported into the law presumes that the GRA which the person concerned is centres would be established on She urged all Ghanaians to year to maintain and develop our transactions of 934,234 in 2017 72.34 percent over 2016 position of offence under a tax law; Customs Division to arrest and the country and the motor through its ofcers whose entitled. the campuses of three tertiary patronise energy saving gadgets activities to improve industry showed an increase of 5 percent 279,959. The growth in Express interrogate and search or cause seize vehicles of which the vehicle shall be forfeited to the presence is mandatory for the Order 55 Rule 1(a) of the High institutions, where the capacities of to save money and to protect the standards which have a positive over the 2016 position of 889,709. ACH is an indication that bank to be interrogated and searched requisite import taxes have not state. registration of vehicles, has Court (Civil Procedure) Rules, energy auditors of public facilities national grid. impact on the economy through Total value of GIS transactions customers prefer to have instant a person who the tax ofcer been paid. The author of this Under Section 58 therefore, the conrmed that all due duties. It 2004 (C.I. 47) also provides for logistics, service delivery and increased by 24.75 percent to access to their funds. would be built to enable them The Ghana Power Compact is believes on reasonable grounds paper is of the opinion that the power to seize a motor vehicle w o u l d t h e r e f o r e b e t h e m e a n s b y w h i c h a n properly monitor and manage expected to support improved products at service stations or at GH¢2,083,846.27 million in 2017. Direct Debits are debit-pull has committed an offence under Customs Act, 2015, Act 891 does arises only when the vehicle is unconscionable and against the applicant can invoke the energy levels of State facilities to management of the country's customers' site”. The average value per transaction instruments used for recurring not in any way give the Customs prevent wastage. entire power system, providing a The four multinational OMCs in was GH¢2.23 million in 2017 payments such as utility bills, a tax law or is in possession of a prohibited vehicle, which, is interest of justice to permit the review jurisdiction of the High There is also a component of more robust framework for the petition stressed that the compared with GH¢1.88 million insurance premiums, loan re- assets mentioned in paragraph Division the right to seize dened as a right-handed GRA to switch sides and start Court as enshrined in the 1992 retrotting and renewables, which private investment as well as a policy directive seeking to achieve in 2016 payments, rent and subscriptions. (a); vehicles that are not prohibited vehicle. a l l e g i n g t h a t t h e d u t i e s constitution. w o u l d i n v o l v e s i x p u b l i c more competitive process for the 6 0 t o 1 0 0 p e r c e n t e q u i t y Cheque Codeline Clearing an The total volume of direct debit arrest a person who the tax in the country, for non-payment A careful reading of Section required in respect of the I must add that the application institutions, namely, Korle-Bu procurement of power from participation for Ghanaian sector electronic system for clearing transactions increased by 65,803 or ofcer believes on reasonable of the requisite import duties 124 reveals that the power of vehicle are unpaid. for judicial review is not an Teaching Hospital, Adabraka independent producers. in the medium to long term as not cheques using the cheque image 7.52 percent from 874,846 in 2016 grounds has committed an after the vehicle has been seizure in all other cases, by the S U P E R V I S O R Y appeal against a decision or Polyclinic, University of Ghana, It will address challenges in practicable considering that the and codeline data continued to to 940,649 in 2017. However, the offence under a tax law; or registered by the Driver Vehicle Commissioner General to seize JURISDICTION OF THE action of the GRA or any ofcer level of investments made come e n g e n d e r e f c i e n c y a n d value of transaction decreased by Department of Urban Roads, and distribution, generation and use reasonable force for the Licensing Authority (DVLA). is limited to goods only and HIGH COURT of it. An application for judicial with some corresponding risks. timeliness in clearing and GH¢0.73 million or 0.57 percent to M i n i s t r i e s o f H e a l t h a n d access to energy in Ghana, which review shall be to question the Education. is investing 37.4 million dollars of The four multinational MDs noted settlement of cheques. The total GH¢126.28 million. procedure and processes Some of the buildings of these state its own funds in the initiative that: “Our respective companies volume of inter-bank cheques E-zwich is an interoperable institutions would have their making the compact a total belong to world wide groups and cleared during 2017 went up biometric smart card payment adopted by the GRA in its lighting systems, refrigeration and investment of up to 535.6 million so benet in many ways from marginally to 7,334,460 from system which offers a suite of work. In other words, judicial air conditioners changed and dollars. GNA international business practices 7,309,406. electronic payments and banking review does not deal with the which are passed on locally The value of cheques cleared services accessible from a Point of merits of the decision by the increased by 17.83 percent to Sales (POS) terminals or an ATM. means of arriving at that Ghana losses US$200m yearly... GH¢179,555.47 million. The These services include payments decision or action. marginal increase in volume of at merchants' point of sale Contd. from back pg. Hence, if an ofcer breaches He said the Authority had increase the price build-up inter-bank cheques was largely on (purchases), withdrawal of cash, out with some recommendations to intensied its safety compliance margins. account of adoption of other deposit onto the card and transfer any of the provisions recited help resolve challenges in the inspections on all petroleum He said there was deliberate digital payment options such as of funds. The e-zwich system above, that action could be petroleum downstream sector and products destinations nationwide efforts to increase petroleum mobile money, e-zwich, debit continues to facilitate payments to susceptible to be set aside by chart the way forward. and more stringent sanctions were p r o d u c t s p e n e t r a t i o n a n d cards and GhIPSS Instant Pay. cocoa farmers, nurses and teachers means of a judicial review. Mr Tampuli said the Authority being enforced including the consumption, which would The GACH direct credit enables and national service personnel's CONCLUSION would ensure due processes for shutdown of non-compliant culminate in the increase in individuals and corporate bodies salaries. export and bunkering of petroleum My nal words to the GRA are stations. revenue for the fuel dealers, to make payments by electronic The number of e-zwich card products as well as applying stiffer that it ought to ensure the Mr Tampuli said it had launched a marketers and other service transfer directly into the bank holders of 2,364,456 in December p u n i s h m e n t s f o r o f f e n d e r s utmost respect and obedience national safety campaign to raise providers within the value chain. account of the beneciary. Direct 2017 showed an increase of 25.90 including withdrawal of licences. to the law in the performance of awareness and adherence to safety Mr Tampuli said the stable credit is usually used for payment percent over 2016 position of ''Recalcitrant service providers will protocols in the petroleum political environment would of salaries, pensions, welfare 1,878,044. Total volume of e-zwich their statutory provisions. A be made known to the public by downstream sector under the enable the nation to achieve a benets, commissions, supplier transactions increased by 55.95 default in following the laid way of naming and shaming slogan ''People's Safety First''. c o m p e t i t i v e p e t r o l e u m payments, dividend, refunds, percent; from 5,365,085 in 2016 to down rules and procedures in offenders and directors would be Additionally, the Authority was infrastructure and an avenue for i n t e r e s t p a y m e n t s a n d 8,367,017 in 2017. Similarly, total the various tax regimes, puts banned from participating in any undertaking an advanced work increasing tax revenue to the government payments. Total value of transactions in 2017 grew any decision or action of GRA activities in the downstream plan for the implementation of the Government. volume of transactions effected by 45.22 percent to GH¢3,431.49 petroleum sector,'' he warned. at risk of being declared a new Liqueed Petroleum Gas H o w e v e r , h e c a l l e d f o r through direct credit channels in million. The increasing trend in e- Mr Tampuli gave the assurance nullity by a High Court upon Policy regarding the Cylinder Re- downward review of some 2017 was 6,061,093, indicating an zwich transactions could be that all unpaid taxes would be an application by an affected Circulation Module. import tariffs and improvements increase of 15.61 percent over the attributed to Government's use of recovered, noting that the recent person. If due processes are not Mr Tampuli gave the assurance in the port infrastructure to make 2016 position of 5,242,610. the system to pay caterers of the measures had seen the Authority that the Authority would ensure G h a n a c o m p e t i t i v e i n t h e Similarly, total value of direct n a t i o n a l s c h o o l f e e d i n g followed, the GRA will end up saving the nation nearly 16 million the security of jobs and safety of petroleum downstream sector credit transfers increased from programme, beneciaries of the a “Don Quixote”, in pursuit of Ghana cedis in tax revenue alone existing investments in the a n d a c h i e v e t h e v i s i o n o f GH¢19,245.65 million in 2016 to L i v e l i h o o d E m p o w e r m e n t nothing. and seven million Ghana cedis in downstream petroleum sector as becoming a petroleum hub in the GH¢24,327.26 million in 2017. unpaid margins. well as maintain or possibly sub-region. Contd. on pg.6 20 Edition Et0411 MONDAY 11 JUN. - SUNDAY 17 JUN. 2018 FEATURE Edition Et0411 MONDAY 11 JUN. - SUNDAY 17 JUN. 2018
here is the need for banks to collaborate to Banks need to collaborate for Tmake the Society for Meeting revenue targets: W o r l d w i d e I n t e r b a n k Financial Telecommunication secured SWIFT Environment A tale of nothingness & GRA's rush for fool's gold (SWIFT) environment secured s e c u r i n g t h e S W I F T abuse is without doubt, our SWIFT is a network that security related transactions against abuse. environment against possible collective responsibility”, she enables nancial institutions and cross border transitions By: Bobby Banson, Esq., MCIArb The Second Deputy Governor a b u s e w a s a c o l l e c t i v e said in a speech read on her worldwide to send and across borders rely on the specically authorized in of the Bank of Ghana (BoG) responsibility of the BoG and behalf by Mrs Peggy Osei- receive information about network. very Country survives of the projected tax. The target w r i t i n g b y t h e T u t u D z o d z o m e n y o , nancial transactions. According to Mrs Awadzi, on tax. Every person for the 2018 scal year is set at Commissioner–General for Mrs Elsie Addo Awadzi, who the banks. (natural or articial) is GH¢ 39 billion. this purpose. m a d e t h e c a l l , h a s “ S e c u r i n g t h e S W I F T Director of Banking, Bank of Large value local funds threats like cyber-attacks E underscored that the need for environment against possible Ghana. transfers, settlement of were now more than ever obliged to pay tax on his taxable In respect of this high revenue This provision undoubtedly income or revenue. All across target, the GRA has adopted a g i v e s t h e imminent in the system thus the world, Revenue Authorities c o l o s s a l l y a g g r e s s i v e Commissioner–General the the need for players in the have often been entrusted with a p p r o a c h t o r e v e n u e right to invade the privacy of a banking sector to close ranks wide powers for the sole mobilization. Media reportage taxable person. It is worth and fend off such threats. purpose of ensuring that as abounds with ofces, shops recalling that the provisions of She said the fear of high risk much revenue is collected on and factories, which have been A r t i c l e 1 8 o f t h e 1 9 9 2 jurisdictions was making the State's behalf as is possible. raided by ofcials of the GRA Constitution of Ghana which many banks around the In Ghana, the situation is no a l l e g e d l y t o c o l l e c t enshrines the right to privacy w o r l d t o r e d u c e t h e i r different. The Ghana Revenue i n f o r m a t i o n a n d of citizens provides as follows: corresponding banking Authority (GRA) is charged equipment/computers in an Every person has the right to relationship and Ghana with the responsibility of a t t e m p t t o e n f o r c e t h e own property either alone or in stands to lose out as some collecting tax from individuals provisions of the relevant tax association with others. existing local banks had and companies for the Country. regimes. No person shall be subjected to a l r e a d y l o s t t h e i r The Authority consists of the In as much as the author of this interference with the privacy corresponding banks. Internal Revenue Service, paper admits the wide powers o f h i s h o m e , p r o p e r t y , New banks are also nding it Customs Excise and Preventive given to the GRA by the c o r r e s p o n d e n c e o r extremely difcult to secure Service and the Value Added various tax laws, the aim of communication except in Tax Service. this paper is to remind the accordance with law and as r e p u t a b l e n a n c i a l Section 1 (1) of the Revenue G R A o f i t s s u p e r i o r may be necessary in a free and institutions to represent them Administration Act, 2015, Act responsibility to ensure democratic society for public in major centres. 915 provides, “The Ghana compliance with due process safety or the economic well- She said with the assistance of R e v e n u e A u t h o r i t y i s and not the abuse of the rights being of the country, for the this provision means that any produce the authorisation for SWIFT it would be possible to responsible, through the of the taxable populace. protection of health or morals, tax ofcer (other than the the access. develop ways to prevent local Commissioner-General, for ACCESS TO INFORMATION for the prevention of disorder Commissioner-General) who (2) Where a tax ofcer fails to banks from being de-risked administering and giving effect AND ASSETS or crime or for the protection of seeks to invade the privacy of comply with a request under by their correspondent banks. to tax laws in accordance with Section 33 of the Revenue the rights or freedoms of any tax payer to seize assets of subsection (1), the possessor Mrs Awadzi, highlighting the the provisions of the Ghana Administration Act, 2016, Act others. the latter under Section 33 of may refuse the tax ofcer importance of the SWIFT said Revenue Authority Act, 2009, 915 provides as follows: With these two provisions in Act 915 must of necessity have access or require the tax ofcer most banks in Ghana, relied (Act 791)”. For the purpose of a tax law, contradistinction to each other, in his or her possession, a to leave the premises or place on SWIFT products to meet In a similar train of thought, the Commissioner–General it is safe to assume that the document in writing from the or return the documents or t h e i r i n t e r n a t i o n a l Section 3 of the Ghana Revenue shall for reasonable cause, provision made under Section C o m m i s s i o n e r G e n e r a l assets to which the tax ofcer compliance requirements. Authority Act, Act 791, outlines have without prior notice, full 33 of Act 915 is so wide as to authorizing that ofcer to has obtained access”. The Central Bank, she said the functions of the GRA as and free access to premises, accommodate abuse of an invade the privacy and seize In the same vein, if a tax ofcer operated a gateway that a m o n g o t h e r t h i n g s t h e documents or assets individual's right to privacy by the assets of the taxpayer. If exercises the powers reserved enabled 29 banks to connect collection of taxes for the In the case of a dwelling house, ofcers of the GRA. It is any ofcer refuses, fails or for the Commissioner General to the SWIFT network and R e p u b l i c w i t h o p t i m u m conveyance or public premises perhaps, for this reason that neglects to produce any such under section 33 of Act 915 this had reduced cost for efciency. or where a document or asset is the framers of Section 33 of Act authority, the taxpayer has without any authority in Conventionally, every budget located in a dwelling house or 915 were sure to include the every legal right to resist the writing, any step taken by the participating banks as well presented to Parliament of public premises caveat that the power to have e n t r y i n t o h i s p r e m i s e s ofcer, including seizing of as helped them meet required Ghana projects the revenue to Between 6:00am and 6:00pm full and free access to business (business or home). This a s s e t s a n d d o c u m e n t s , standards. be collected by the GRA to At other times as permitted by premises and private homes assertion is fortied by the subsequent to this breach of The country Manager for support the budget. This an order of a magistrate under w i t h o u t p r i o r n o t i c e i s provisions of Section 34 of Act due process, stands to be SWIFT, Mr Solomon Souza, projection of the tax, which will section 88; or e x e r c i s a b l e b y t h e 915, which provides as follows: declared as a nullity by any said there were currently accrue to the State, results in the In any other case, at all times. Commissioner-General alone “(1) A possessor of any court of competent jurisdiction. 11,000 connected nancial setting of collection targets for T h e p o w e r o f t h e o r b y a n y t a x o f c e r premises, place, document or P O W E R O F S E A R C H , institutions, corporate and the revenue agencies. In 2017, Commissioner – General specically authorized in asset to which an authorised SEIZURE OR ARREST market connected globally. the GRA collected Gh¢ 32.4 under subsection (1) may be writing by the Commissioner- tax ofcer seeks or obtains Section 88 of Act 915 provides He said SWIFT was present in billion as against the target of delegated to and exercised General for this purpose. access under Section 33 may as follows: more than 200 countries and only by a tax ofcer who is Gh¢ 34 billion representing 97% A purposive interpretation of request the tax ofcer to Contd. on pg.21 territories, registering about seven billion messages daily. He said data from SWIFT showed that its payment business in Ghana had outperformed the total growth of the business globally. Ghana in 2017 recorded seven billion transactions and its current average messages number around 33,000 per day, representing an increase of 22.7 percent over last year's average. GNA Edition Et0411 MONDAY 11 JUN. - SUNDAY 17 JUN. 2018 Edition Et0411 MONDAY 11 JUN. - SUNDAY 17 JUN. 2018 FEATURE 19 Bayport to increase its Note Poor risk management practices, the mystery behind failure of Ghanaian businesses Programme to GH¢500 million By Cliff Kakra Boakye i n s t i t u t i o n a l i z e r i s k usiness failure is the management practices by way h e M a n a g e m e n t o f focus, Bayport intended to touchpoints, deploying digital closure or cessation of o f a s s i g n i n g a m a n a g e r Bayport Savings and b e c o m e G h a n a ' s l e a d i n g and physical assets for the Bb u s i n e s s a c t i v i t y r e s p o n s i b l e f o r r i s k TL o a n s P L C s e e k s t o nancial solution provider in express objective of enhancing following its inability to make management, who will identify increase the size of its existing the mass market space and is the customer experience, Nii prot or generating enough and evaluate risk exposures and N o t e P r o g r a m m e , a d e b t looking to be one of the top Tetteh said. revenue to cover its expenses. nd appropriate solutions to instrument, to GH¢500 million. t h r e e s a v i n g s a n d l o a n s He said Bayport intended to It was reported Modern Ghana them. The company is thus raising the companies by 2020. consolidate their dominance in Online News on 7th June 2017 The following addresses ways N o t e P r o g r a m m e b y a n He said currently they were in government payroll lending, by that 75% of businesses in Ghana in which businesses can manage additional GH¢300 million from all the regions providing enriching the proposition and fail within the rst three years. its risk the current GH¢200 million. signicant services to their experience of their customers. This was according to the F i r s t o f a l l m a n a g e r s o f N i i A m a n k r a T e t t e h , t h e customers and they sought to “We are also leading new M i n i s t e r f o r B u s i n e s s businesses must make the effort Managing Director of Bayport explore relationships within the opportunities in the private Development Ibrahim Awal t o s y s t e m a t i c a l l y a n d non-payroll space. sector payroll space and are Savings and Loans PLC, said Mohammed. continuously identify all currently the company was He said the company was poised to pilot new offerings in He note that those businesses property, liability, personnel going through some approval looking to create a business that this space as well,” he added. that are able to exceed three and net income risk exposures process from the Bank of Ghana. was customer centric, leverage Mr Gabriel Quartey, the Chief years do not go beyond 10 years of the business as soon as or Nii Tetteh was speaking during digital resources to serve their Finance Ofcer, Bayport of operation, adding that ''Small before they emerge. Businesses the company's turn at the facts customers better and build a Savings and Loans PLC, said businesses constitute over 90 of must determine the existence of behind the gures programme of culture of execution for their Bayport closed the year, 2017 an exposure and identify the the Ghana Stock Exchange in operations. with net interest income of all businesses in the country Accra last week. He said the company would GH¢100.3 million compared to and the rate of failure is not operating cause leading to loss. He said the bonds would be also deploy technology and 2016's value of GH¢81.9 million. acceptable.” The risk identication should listed privately on the Ghana other resources to better serve He said the total asset size of the Risk is the possibility of a determine every possible risk Fixed Market and would have a their customers effectively and b u s i n e s s i n c r e a s e d f r o m negative deviation between that factor associated with the tenor of seven years at a xed or better. GH¢365.83 million in 2016 to which is planned and the actual business's own activities and the oating rate, issued to qualied T h e c o m p a n y w a s w e l l - GH¢538.83 million in 2017. outcome or living with the business's own environment. institutional investors in positioned and committed to “The company's return to possibility that a future event The risk associated with the accordance with stipulated t h e e s t a b l i s h m e n t o f a n shareholders is at a margin of 32 may cause harm. business's own activities may be Ghanaian law. ecosystem of complementary per cent,” he added. Risks to businesses come in known by examining the nature Nii Tetteh said as a strategic customer service outlets and many different guises and may of the business, how activities include among others nancial are conducted, with whom i.e. risk, Operational risk, legal risk, suppliers, customers etc. and statement and supporting control is whereby the risk is by a rm as a result of a certain Contd. from pg.4 reputation risk, product risk, where business activities are records. This tool helps a v o i d e d c o m p l e t e l y . I f risk factor. It may also be Against Poverty (LEAP), Youth political risk and natural conducted i.e. whether own or managers of businesses to managers' efforts at avoiding dened as contingency capital Employment Agency (YEA), Mobile money now biggest... disaster. The success of any customers' premises, nal identify all property, liability the loss become successful, that is assigned as reserves Nurses and Teacher Trainees business depends on its ability destination of products etc. and personnel exposures. then there is 0% probability that against those risk. allowances, Students Loans o f G H ¢ 6 0 3 . 4 3 m i l l i o n to identify and properly The risk associated with the Where supported by nancial you will suffer a loss from that M a n a g e r s o f G h a n a i a n Trust Fund and personnel of the compared with 2,067,498 with a manage these risks. businesses own environment forecasts and budgets, future particular risk factor. This is businesses can nance risk National Service Scheme as value of GH¢447.04 million in R i s k m a n a g e m e n t i s t h e may be known by examining e x p o s u r e s m a y a l s o b e why avoidance is generally the through insurance premiums, means of ensuring efciency in 2016. While ATM withdrawal methodical and systematic t h e b u s i n e s s ' s p h y s i c a l identied. r s t o f t h e r i s k c o n t r o l c r e d i t o r c o u n t e r p a r t y payments and eliminating was the main driver of gh-link process of identication and environment e.g. exposure to The ow-chart method shows techniques that is considered t r a n s f e r s , a n d n a n c i a l waste in public expenditure. transactions, POS transactions e v a l u a t i o n o f p u r e l o s s natural catastrophes, the social all the operations of the rm i.e. by many. With avoidance (hedging) instruments, just to The volumes and values of e- recorded signicant growth of e x p o s u r e s f a c e d b y t h e environment e.g. the rate of the ows of materials, parts, t e c h n i q u e , t h r e a t s a r e mention a few. z w i c h c a s h w i t h d r a w a l s 53.17 percent, from 1,121 individual or an organization as criminal activities, the legal and products from suppliers, completely eliminated. A successful and competitive e x c e e d e d o t h e r e - z w i c h transactions in 2016 to 1,717 in well as the selection and e n v i r o n m e n t e . g . l e g a l t h r o u g h t h e v a r i o u s Loss reduction is a technique business is one which has been products or services such as 2017. a p p l i c a t i o n o f t h e m o s t provisions and enforcement of production stages and on to that does not only accept risk, able to effectively identify, purchases, cash deposits and GhIPSS Instant Pay (GIP) appropriate tools for handling l a w s a n d t h e p o l i t i c a l customers. The ow chart but accepts the fact that loss control and nance all forms of money transfers. This trend which is on gh-link platform such risk exposures. environment, determining the method can provide managers might occur as a result of the r i s k a s s o c i a t e d w i t h i t s suggests that cardholders prefer allows payments to be sent Most Ghanaian Businesses have exposure of political liabilities. of businesses with a very risk. This technique minimizes activities and environment. withdrawing cash from ATMs across nancial institutions however become reactive to risk In order for managers to d e t a i l e d p i c t u r e a b o u t loss in the event of some type of Unfortunately, most Ghanaian and POS terminals to pay for electronically from a sender's exposures and have nobody effectively identify risk inherent p o t e n t i a l o p e r a t i o n a l threat. companies have not been able goods and services instead of bank account to a beneciary r e s p o n s i b l e f o r R i s k in Ghanaian businesses as bottlenecks. Potential hazards Diversication is a risk control t o a d o p t t h e s e r i s k using the system to transfer bank account instantly. A total Management. Unlike some stated above, knowledge of the can be determined along the t e c h n i q u e t h a t a l l o c a t e s management practices and this monetary value to merchants of 41,795 GIP transactions with B a n k s , t h e n o n - n a n c i a l tools and techniques for risk ow by applying a checklist of business resources to create has resulted in rampant failure and beneciaries to discharge a value of GH¢ 83.23 million c o r p o r a t i o n s h a v e n o t identication is required. Risk potential property, liability m o r e t h a n o n e b u s i n e s s of most Ghanaian businesses. nancial obligations. The w e r e a f f e c t e d i n 2 0 1 7 , The number of registered 107,415. money wallets in 2017 in line i n s t i t u t i o n a l i z e d r i s k i d e n t i c a t i o n t o o l s a n d and personnel losses to each subsidiaries with the aim of In conclusion, I recommend cardholders' preference for cash c o m p a r e d w i t h 1 8 4 mobile money accounts as at Total value of mobile money with the Electronic Money management practices e.g. t e c h n i q u e s i n c l u d e property and operation in the spreading the risk. Here that the ministry of business c o u l d b e a t t r i b u t e d t o transactions with value of GH¢ end-December, 2017 was transactions of GH¢155,844.84 Issuers Guidelines of 2015 was through the development of O r g a n i z a t i o n a l C h a r t s , ow chart. varieties of products are development in Ghana should inadequate merchant e-zwich 0.42 million in 2016. 23,947,437 showing a growth million in 2017 showed a 98.51 GH¢57.68 million; representing risk management departments F i n a n c i a l R e c o r d s a n d Effective risk management offered in different businesses embark on series of outdoor point of sales devices and lack of The mobile money ecosystem rate of 21.34 percent over the percent increase over the 2016 growth of approximately and therefore in-house risk Accounting Records Analysis, practice does not end at or subsidiary rms. In an event and on-air -business education awareness of other e-zwich continued to grow since the 2016 position of 19,735,098. position of GH¢78,508.90 132.67 percent compared to the assessment capabilities. and Flow - Chart Method. identication of the business of signicant revenue loss from programs, with the aim of payment options. passage of the Electronic Similarly, the number of active million. 2016 position of GH¢24.79 The absence of proper risk The organizational chart helps risk. When risks are identied, one line of business, other lines educating business leaders, Gh-linkTM as an interbank Money Issuers and Agents m o b i l e m o n e y a c c o u n t s The total oat balances which million. management practices by these managers of businesses to they must be controlled. Some of businesses may not be entrepreneurs among others switching and processing Guidelines in July 2015. Three increased by 33.75 percent refer to the cash component The growth in mobile money businesses leads to deviations determine organizational Ghanaian businesses become affected. on effective risk management system interconnects nancial (3) Mobile Money Operators from 8,313,283 in 2016 to held in banks to cover mobile sub-sector could be attributed of results from target objectives w e a k n e s s e s , w h i c h m a y clueless or lack techniques in The last stage which ensures practices. i n s t i t u t i o n s a n d a l l o w s made up of MTN Mobile 1 1 , 1 1 9 , 3 7 6 . T h e a c t i v e money in circulation increased to efciency and convenience of leading to damages and losses. exacerbate risk situations e.g. controlling risks even when effective risk management The ministry should as well d o m e s t i c c a r d h o l d e r s t o Financial Service, AirtelTigo registered agents of the three b y 8 4 . 5 9 p e r c e n t f r o m the service, expansion in agent It is important to note that whether key positions are they are able to identify them. p r a c t i c e i n G h a n a i a n frequently create a platform for transact on any ATM or point of Money, and Vodafone Cash (3) mobile money operators G H ¢ 1 , 2 5 7 . 4 0 m i l l i o n i n networks, introduction of failure of businesses have actually manned by qualied Some popular risk control businesses is risk nancing. business players to interact sales of member institutions. offered mobile money services (MMOs) in 2017 stood at December 2016 to GH¢2,321.07 innovative products and n e g a t i v e i m p a c t o n t h e personnel. techniques include avoidance, Risk nancing may be dened with each other, thereby T h e g h - l i n k T M r e c o r d e d during the year under review 151,745 and showed a growth million in 2017. services and creation of economy as it increases the rate Financial statements and l o s s r e d u c t i o n , a n d as setting aside some funds to creating an opportunity for 2,340,409 total volume of on account of Airtel and Tigo rate of 41.27 percent over the Total interest paid on oat e n a b l i n g r e g u l a t o r y of unemployment. accounting records analysis diversication among others. cover the nancial effect of others to learn from successful transactions in 2017 with a value merger in November 2017. previous year's position of balances to holders of mobile environment. Ghanaian businesses need to include balance sheet, operating Avoidance technique in risk unexpected losses experienced business men and women. 18 Edition Et0411 MONDAY 11 JUN. - SUNDAY 17 JUN. 2018 FEATURE Edition Et0411 MONDAY 11 JUN. - SUNDAY 17 JUN. 2018 Early marriage; the sad end of Fati Only Ghanaians will be licensed to implement A GNA Feature by A.B. Kafui Kanyi the Cylinder Recirculation Model – NPA h i l d b i r t h the children alone,” and babies strapped at their backs, By: Adnan Adams Mohammed complications killed hinted of her plans to opt for a few (babies), not weaned He explained that the company The objective of CRM is to develop “On the average, a bottling plant Fati at age 26. It was her family planning after the from the breast, crawling and he National Petroleum wants to operate as a free zones a market-driven structure that can have about 30 employees and C A u t h o r i t y ( N P A ) h a s company that would produce in the would ensure safety, increased then the distribution companies sixth child after she dropped sixth child. drifting in the charcoal dust, out of school at age 15 to marry But it is a difcult pregnancy mostly half naked. cleared the air on the country but cannot sell the products access and adoption of LPG. It is would have not less than six to four T in Ghana. also to ensure the existence of people,” adding that “in some Musa, who was 50 years. from day one. She is unable to A 17-year old mother of two, argument that, the implementation of the Cylinder Recirculation The National Petroleum Authority robust and standard health, safety j u r i s d i c t i o n , y o u h a v e a d o m o s t o f h e r u s u a l Fati, was cajoled to marry married to a 45-year old Model (CRM) will cause some (NPA) is seeking to move away and environmental practices in the redistribution company which Musah because Memunatu, 35, household chores and her farmer when she was 14, said businesses within the current LPG from the old model of gas lling to a production, marketing and also don't have less than four Musa's rst wife, has had no economic activities. Some of they wished to be in school, value chain, specically those on new model, which would see the consumption of LPG. employees and then the retailers, c h i l d , a f t e r 1 9 y e a r s o f her children tried to help, but but the charcoal business was the marketing and retail sides, to building of bottling plants that will Additionally, it is also to ensure all in the new value chain. So, the marriage. unable to sustain the family. helping put food on the table shut down, and thereby jobs will be ll cylinders for distribution at local content and participation in issue that there would be job losses Despite Fati's protests, her She gets weaker by the day, f o r t h e i r c h i l d r e n a n d lost. approved cylinder exchange points. the LPG sub-sector in compliance was far from the facts”. Cabinet on April 4, 2018 approved a to the Downstream Local Content Explaining how the new policy father, a very good friend of weeks and months. She has husbands. At a sensitisation workshop for will be responsible for procuring, journalists in Accra, last week, on local content policy which would P o l i c y w h i l e e n s u r i n g t h e would work, Madam Esther Anku, branding, and maintaining the been in and out of a local Musa pushed her into it, to Multiple Indicator Cluster the CRM implementation plan, allow only Ghanaian companies to sustainability of supply under the Chief Inspector at the Inspection, cylinders. Specialised trucks will c e m e n t t h e i r o l d - t i m e clinic and made herbal Survey (MICS, 2011) says one Chief Executive Ofcer of NPA, Mr operate under the CRM. new market structure. Monitoring and HSSE Department be used to transport the lled friendship. preparations her companion, (1) in four (4) women, 27 per Hassan Tampuli was emphatic Under the new model, consumers The CEO told journalists that the of the NPA, said the proposed new cylinders from the bottling plants T h r e e m o n t h s a f t e r t h e which she carries along when cent, married before age 18, that, the CRM policy rather would be expected to exchange broad objective of the policy was LPG distribution model will begin to the retail stations or exchange marriage ceremony, witnessed going to sell. with the frequency in rural r e v o l v e s a r o u n d t h e a c t i v e empty cylinders for lled ones at to increase LPG penetration in the with the LPG Bulk Distribution points, where consumers will by only a handful of people, In the seventh month, the areas. participation of such businesses retail centres. country, which was to ensure that C o m p a n y ( L B D C ) , w h o s e exchange their empty cylinders for Mr Tampuli stated that the policy, at least 50% of Ghanaians have responsibility would be to either Fati got pregnant and later p r e g n a n c y d e v e l o p e d Reverend David Mensah, while assuring that non-Ghanaian lled ones.” rms cannot operate under the new when implemented, will help to a c c e s s t o s a f e , c l e a n a n d import or buy the LPG from local Madam Anku told journalists that gave birth to Musa's rst child. complications and she was Chairman, Local Council of model. curb the numerous gas explosions environmentally-friendly LPG for renery and gas processing plant, the new model would be rolled out Soon, the second and third rushed to the local clinic, Churches, Dambai, said “The Cylinder Recirculation Model in the country and also solve the increased domestic, commercial such as Tema Oil Renery and side by side with the old model children came, bringing joy to from her food joint. issues of early marriage had m a y r e s u l t i n a u t o - r e - districts seem overwhelmed revolves around LPG marketers; stress consumers go through in and industrial usage by 2030. Ghana National Gas Company, until the whole country is covered. M u s a a n d M e m u n a t u . The clinic referred her to the reached the tipping point infection, IAP appears to have by the number of early so, when we hear concerns about lling their cylinders. Alleviating the fear of some LPG and store the LPG in their bulk She noted that the country would Memunatu because, Fati was Worawora Government with some girls seeking a direct effect on the immune marriage and child labour job-losses, obviously, the facts do I n o r d e r t o e n s u r e s m o o t h Marketing Companies that the storage facility. need eight bottling plants to cover not only a second wife, but also Hospital, but Fati couldn't go refuge in churches. system.” cases. not support that conclusion.” implementation, he said LPG new policy is going to wipe away The LBDC, she said, would then the whole country, but would roll He said: “We are minded by the relling plants would be classied the current players in the industry, sell the LPG in bulk to either the them out after the rst is built. a house-help. because she had no money. Child labour is another issue Science Daily also says Mr Israel Aklorbortu, Volta local content policy, which into low risk and high risk based on Mr Tampuli said the current bottling plant for the sole purpose The LPG bottling plant is expected The two-acre yam farm, could At dawn, the situation got the two districts are grappling children exposed to open re R e g i o n a l D i r e c t o r , identies operation such as this one their deciency in meeting safety operators in the market were the of lling the empty cylinders or to to have a minimum storage n o t s u s t a i n t h e f a m i l y , b a d , a n d a t a x i d r i v e r with. ILO denes the term as c o o k i n g i n d e v e l o p i n g Department of Children to be reserved for Ghanaian equity standards in a risk assessment of all spectrum around which the whole the LPG Marketing Companies c a p a c i t y o f 2 5 0 M t w i t h a n compelling Fati to engage in neighbour was begged to work that deprives children c o u n t r i e s e x p e r i e n c e lamented the unrepentant participation of 100 per cent. So, if plants by the NPA. The high-risk new policy evolves. (LMCs) for bulk sale to industrial automated bottling plant and a economic activities apart from h e l p t r a n s p o r t F a t i t o of their childhood, their difculty with memory, nature of some parents and you are not a Ghanaian, you will r e l l i n g s t a t i o n w o u l d b e He explained that the said foreign end-users – factories, restaurant, lling capacity of 1,000 cylinders farming to feed her children, Worawora Government potential and dignity. That is problem-solving and social therefore called for the not be given license to operate in immediately converted into lled company that applied would be and mini-power plants – and also per hour. The country will be cylinder retail and distribution her Husband and Memunatu. Hospital. w o r k t h a t i s m e n t a l l y , skills. development of response this industry as far as the CRM is having its bottling plant in Ghana to auto gas users. zoned for the locating of these concerned.” outlets whereas low-risk relling for shipping lled cylinders “The LPG Bottling Plant Company bottling plants. However, the She wakes up around 0400 It started quite well. It was as physically, socially or morally At Dambai old town, Adjoa, mechanisms outside the So far, he said 18 companies have stations would be dedicated to the outside the country on a daily will be responsible for lling the distribution of their lled cylinders hours, prepares porridge to if we were welcoming the dangerous and harmful to 40, gave her daughter, 12, out formal system-establishment applied for licencing, with one supply of auto gas only, with basis, which would create jobs in empty cylinders for onward will not be limited to any particular sell at Dambai-Zongo, where sixth child but mother and children and interferes with as a house help to a 25 year- of child protection committees being a foreign company. improved safety standards. the country. distribution to LMCs. The LMCs zone. they live and does other menial child died upon reaching their education. old lady Teacher, for her b y t h e A s s e m b l i e s o r jobs for people, before visiting Dambai cemetery, off the But, a father of eleven (mother) to be paid GH¢80.00 Traditional authorities to the farm late afternoon. Dambai-Worawora road. c h i l d r e n f r o m G r u b i - monthly. The teenager wakes protect children from all forms By 1800 hours, she must get The sad end of Fati went Chinderi, in the Krachi- up early to do all household of violence, abuse, neglect and home and prepare supper for around Dambai-Zongo, Nchumuru District, sees c h o r e s i n c l u d i n g ; t h e exploitation. the family, bath her children sending shivers down the nothing wrong sending two preparation of local drinks, He said the committees could before getting ingredients spine of many, including; of his daughters, 10 and 13 which she sells in the market serve as watchdogs, to ensure ready for porridge at dawn. o t h e r v i c t i m s o f c h i l d years to Dambai-Wankaya, to during school hours. that children enjoyed their A few years later, the fourth marriage, whose stories are stay with a bread baker and Attempts to enrol her in rights to the fullest. Such and fth children were born, yet to be told. work. school was unsuccessful as committees are welcome but with more economic pressure In Krachi East, four new cases Checks indicate that the bread her mother was not ready to you and I have our roles to on Fati, because Musa and of early marriage were baker sends GH¢150.00 every lose her monthly pay. play too. All we need to do Memunati are now very old recorded between January m o n t h t o t h e m a n f o r Investigations show that according to experts, is to look a n d c o u l d n o t d o a n y a n d A p r i l , t h i s y e a r , allowing the girls to stay and hundreds of children, boys out for triggers such as meaningful work to cater for prompting World Vision work with her. and girls are trafcked unexplained bruises on the family. International Ghana to The trafcked girls reportedly especially from neighbouring children, children wandering Fati turns to selling rice and l a u n c h t h e “ E n d c h i l d keep wake controlling re in island communities to the two late at night, begging for food b e a n s , ( w a a k y e ) , w h i c h marriage now! It takes us all” the local oven till next districts and engaged in and poor clothing, for rescue. arguably, has bigger prot c a m p a i g n i n t h e morning and move round to economic activities, including Children also suffer many margin, so she could take care Municipality. s e l l b r e a d i n n e a r b y shing. other abuses, such as parents of the family. She carries the Hosts of teenage mothers, c o m m u n i t i e s , w i t h n o A few of the children who are showing little concern for a food to market centres and mostly victims of early opportunity to go to school. living with relations go to child and incessant verbal public gatherings on days that marriage have resorted to A s t u d y b y A n d r e a I . school but sell food and other thrashing of a child for poor she is unable to sell all at her charcoal trading activities, Zambrano, Beatriz E. Munoz, items after school and on performance at school and joint. deemed a good alternative a n d S h e i l a K . W e s t , i n market days. home. Gradually, her natural beauty for the poor in the Krachi East Tanzania found a strong Experts say lack of rest affects Some parents follow up their fades. She is often seen in the and West Districts. relationship between cooking the growth hormone levels of children to school to demand same dress and looks a bit The increasing demand for re exposure while sleeping children, their metabolism of their teachers to use harsh unkempt, with three, four the fuel by city dwellers has and active trachoma in and ability to concentrate, but physical discipline on them children trailing, the youngest kept girls between ages seven children. alas, these children know no (children), also denying them strapped at her back. and 15 out of school, with It says “there is good biologic rest, not even on school healthcare and abandonment, At age 26, Fati, got pregnant for many involved in the rather plausibility why trachoma vacations. all these are signs of abuse the sixth time but appears tedious activities of charcoal may be higher in children The Department of Social calling for attention. unhappy with it. She tells her production, packaging and e x p o s e d t o i n d o o r a i r Welfare and other institutions friends, “I'm fed up. This is the selling in market centres. pollution (IAP). In addition to mandated to protect the GNA last one, I can't be taking care of This they do, sometimes with tearing and irritation, which welfare of children in the Edition Et0411 MONDAY 11 JUN. - SUNDAY 17 JUN. 2018 Edition Et0411 MONDAY 11 JUN. - SUNDAY 17 JUN. 2018 ICT 17 Mining companies post impressive producer, PotashCorp, while Tesla What is the iPhone X? continued to invest in lithium he iPhone X – or iPhone background. Certain apps – balance sheet in 2017 - PwC supplies, including their recent Apple Watch I've been using is a t r a n s a c t i o n w i t h K i d m a n 10 – is an important scratched-up mess. As a result, Apple's Music being one – use i n i n g c o m p a n i e s Miners, 2017 was a remarkable to the repayment of debt, and tax. It is expected that US tax Resources in Australia. Tdevice for Apple. Not my iPhone X has spent much of software trickery to blank out operating across the y e a r . W e ' r e e x p e c t i n g t h e capital expenditure at a record low reforms will ease the tax burden on In 2017 there was a 36 per cent only does its release coincide its time inside an Apple case, but the notch, and some apps Mglobe have posted an improved performance to continue of $48bn. As a result, gearing has US operations going forward. reduction in the number of fatalities with the 10th anniversary of this certainly sees it lose points clearly need to be updated to impressive balance sheet for the into 2018 as companies continue to fallen from 41 per cent to 31 per Shareholders returns have almost among the 28 companies (of the arguably the most important in the glamour stakes. ensure important buttons 2017 nancial year. reap the benets of the upswing in cent, which is back in line with the doubled year-on-year, from $16bn Top 40) that disclose safety tech product of the past decade, It's around the front of the aren't hidden by it. A new mining sector report released the mining cycle. Top 40's 15-year average. With the in 2016 to $36bn. Based on current statistics. Of the 22 companies that but it's the rst iPhone in four In the space either side of the by PwC has indicated that some 40 He said, “One of the risks currently liquidity concerns that were still levels of performance, dividends disclose injury statistics, 15 i P h o n e X t h a t t h e m a g i c largest mining companies in the facing the world's top miners is the lingering in 2016 now largely are likely to reach record highs in reported that the number of injuries years to undergo a major happens, though. The iPhone 8 notch you'll nd the battery world have delivered an impressive temptation to acquire mineral- resolved, balance sheets are strong, 2018. had either fallen or remained redesign. But it comes at a cost. has an extensive bezel running i n d i c a t o r a n d t i m e . nancial performance in 2017. producing assets at any price in and companies have the exibility “Shareholders who endured the consistent compared to the A hefty one. around the display, but the Annoyingly, you can no longer T h e s e l e c t e d 4 0 c o m p a n i e s order to meet rising demand. to act. boom cycles of 2008 and 2012 will previous year. iPhone X doesn't. Similar to the see the battery percentage collectively increased their revenue W h i l e w e e x p e c t c a p i t a l Andries Rossouw, Assurance be keen to reap the rewards of their While an improvement in the safety iPhone X – Design Samsung Galaxy S9, Apple has remaining or whether you by 23 percent to record US$600 expenditure to increase next year Partner at PwC, says: “In 2018, we patience now that optimism and record of the Top 40 is welcome Apple has been coasting for too pushed out the screen to the h a v e a p a i r h e a d p h o n e billion. as companies implement their expect that favourable market prots are back. But the immediate news, there is clearly more work to l o n g w i t h t h e d e s i g n i t e d g e s h e r e , s i g n i c a n t l y connected without opening The PwC's 'Mine 2018' report, was long-term growth strategies, conditions, higher commodity temptation for larger returns – for do to ensure a safe working released on the sidelines of the miners must be careful to maintain p r i c e s a n d s t r o n g i n t e r n a l shareholders or other stakeholders environment for all employees. introduced for the iPhone 6, but reducing the bezel. A noticeable the Control Center. The bigger Junior Mining Indaba conference discipline and transparency in the discipline will produce increased – must also be balanced against the Bulk commodities such as coal, that all changes with the iPhone black border remains, but it annoyance is that the battery held in Johannesburg last week. allocation of capital.” liquidity and balance sheet on-going need to invest for copper, iron ore, zinc, manganese X – in a big way. You don't need adds a nice contrast to the bright and signal indicators aren't in The report analysis conrms an While the Top 40 Miners are strength. sustainable long-term value,” said a n d c h r o m e a l s o s h o w e d me to tell you the iPhone X is a display. line with the bottom of the upswing in the mining cycle, which enjoying a bounce back, miners 'While we expect to see an increase Kotze. remarkable price increases over the huge departure from the iPhone The lack of a thick bezel means notch, so they dip slightly comes on the back of rising global will need to stay focused and in value and growth opportunities 2017 saw a range of new entrants last two years. Miners of these design of old – just look at the there's no room for the Home below and look rather weird. economic growth and a recovery in deliberate in the pursuit of their in 2018, we anticipate that this will active in the mining sector. Private commodities in Africa will reect pictures. Not only does it look button, a feature present on I do feel that the notch gives commodity prices. Helped by astute long-term goals to create value for be tempered by a continued focus Equity investors took a keen similar trends to those explained good, however; Apple has done cost-saving strategies over the past all stakeholders on a sustainable on maintaining a robust and interest in mining investment for the global mining industry. every single iPhone iteration the iPhone X a bit of character few years, margins and cash- basis. exible balance sheet.” opportunities, for example, and Unfortunately, precious metals a fantastic job at actually until now. As a result, there's no a n d a d i s t i n c t i v e l o o k , generating ability has improved PwC's Mine 2018 analysis is based Tax expenses increased 81 per cent were active participants in almost haven't done as well. The US-dollar making it feel really good too. Touch ID ngerprint scanner. s o m e t h i n g l o s t b y t h e signicantly, leading to a 126 per on the major Top 40 global mining in 2017, with cash taxes paid to every quality coal deal brought to gold price has remained relatively This phone is simply gorgeous. Instead, the iPhone X sees Apple dismissal of the Home button. cent jump in net prots. c o m p a n i e s b y m a r k e t governments rising by 67 per cent, market in Australia during the at and platinum prices are at It's slightly taller than the introduce facial recognition – a I'm sure Apple would get rid of The 2018 outlook indicates that the c a p i t a l i s a t i o n . T h e r e s u l t s despite the fact that corporate tax year. extreme lows. With higher input iPhone 8 (and 7 and 6) but much bold move. it in an instant if it could cram Top 40's improved nancial aggregated in this report have been rates remained relatively stable There are also examples of non- costs driven by input cost ination, narrower and smaller than the All of the components for Face this tech inside the bezel; but it performance will continue as sourced from the latest publicly across most key markets. mining companies partnering or miners of these commodities are iPhone 8 Plus. It strikes the does feel as though the you can't just shove it in companies continue to benet from available information, primarily The jump in tax expenses was merging with miners to secure not experiencing the same growth ID (infrared camera, ood Pay payments too. this upward momentum in the annual reports and nancial driven mostly by increased prot access to commodities. For as other commodities. They are still perfect balance, especially since illuminator, dot projector) are company wants to use it as a someone's face and expect it to iPhone X – Screen mining cycle. reports available to shareholders. and the impact of US tax reforms, example, Agrium, a Canadian faced with the challenges of the you're getting a 5.8-inch display housed in what's affectionately distinguishing feature while unlock. The iPhone X sees Apple switch Michal Kotzé, Energy, Utilities and Miners continued to focus on which saw a one-off 4 per cent (or fertiliser and chemical wholesale bottom of the commodity cycle and here. being called the 'notch'. You'll it's here. Face ID isn't perfect, though, out its usual LCD screen tech Mining Industry Leader for PwC strengthening their balance sheets $2.8bn) rise in the effective tax rate and retail company merged with job losses and mine closures are real The aluminium sides have been nd the notch at the top of the but then neither was Touch ID; for an OLED panel for the rst Africa, said, “For the world's Top 40 in 2017, with $25bn being allocated due to a revaluation of deferred t h e w o r l d ' s l a r g e s t p o t a s h risks. swapped out for stainless steel – display, where it somewhat iPhone X – Face ID the ngerprint scanner was time. Samsung, Google and as seen on the Apple Watch – disrupts that all-screen look. I've used Samsung's face poor if your ngers were many other Android phone and the front and rear of the There's been much controversy unlock and iris scanners a fair slightly greasy or wet. This isn't makers have been using this device are glass. I received the concerning the notch with bit and have never been a problem now. However, I technology for some time now, Silver variant for review – and, regards to it completely ruining particularly impressed by have found that Face ID and it's nice to see Apple nally unfortunately, it wasn't long the immersive experience. Once either their speed or accuracy. struggles if my eyes are a joining the fray with a product before it was covered in you begin using the phone, So, it was important that shrivelled mess, usually rst other than the Apple Watch. ngerprints, those shiny sides however, I've found that it Apple's Face ID worked every thing in the morning, and if the This is also the highest- being a particular magnet. This s i m p l y b l e n d s i n t o t h e single time. phone isn't close enough to my resolution screen ever on an is a phone that looks fantastic background. The notch has It works accurately in both the face. If you're the type of person iPhone, with a slightly odd straight after a wipe-down; not become common sight since the light and dark; it can't be who tries to sneak a look at 2436 x 1125 pixel, plus there's so much a few hours after it's iPhone X came out and Android fooled by pictures or masks; their notications with your support for the DCI P3 colour been in your greasy palms. phones like the LG G7 and and it works if you're wearing phone at pocket-level then gamut and Dolby Vision HDR. Also, of concern is how the Huawei P20 have both brought glasses too. There have been you're out of luck. OLEDs offer better contrast, iPhone X will fare over time. No the design trait across. reports that twins have fooled Apps that previously used t r u e b l a c k s a n d a m o r e matter how unscientic they Sure, you notice it when the it, and Apple told me some IR- Touch ID as a means of colourful picture, but they're might be, drop tests indicate screen is on, plus it juts into blocking sunnies won't work, unlocking will automatically not always perfect. The LG that the nish here doesn't lend v i d e o i f y o u ' r e p l a y i n g but these are limited scenarios. be replaced by Face ID without panels used by Google in the itself well to wear and tear. something full-screen. But in all Note that you need to be the need for an update, and you Pixel 2 XL have come in for After all, the stainless-steel other instances it fades into the 'actively aware' for it to work – can of course use it for Apple plenty of criticism for poor viewing angles and an odd blue tinge. Even the excellent screens on the Samsung Galaxy S9 and S9 Plus are prone to suffering poor viewing angles. Apple's OLEDs come from Samsung, and while there's a small shift to blue if you tilt the device off-axis, it's far less noticeable than on the Pixel 2 XL. Apple says it's made a fair few tweaks to this panel, and the company's optimisation of it is certainly different to Samsung's approach for its own Galaxy S9 and Note 8 panels. Colours on the iPhone X are more natural and the saturation isn't quite so intense. 16 Edition Et0411 MONDAY 11 JUN. - SUNDAY 17 JUN. 2018 FEATURE Edition Et0411 MONDAY 11 JUN. - SUNDAY 17 JUN. 2018 ECONOMY TIMES Ghana's most read weekly business newspaper PRESENTS: 2O SAFE BANK HAVENS FOR CUSTOMER DEPOSITS
In the wake of the financial troubles afflic ng several banks in Ghana, with corporate governance shortcomings and consequent poor risk management culmina ng in the threat of technical insolvency, the banking public are no longer guaranteed that their savings and investments placed with the country's commercial banking sector are completely safe. Over the past seven months, two erstwhile universal banks have had their licenses revoked due to irredeemable technical insolvency, another has been placed under official administra on to avert a similar fate and most recently, yet another has had an advisor imposed on it by the Bank of Ghana to address corporate governance shortcomings and capitaliza on deficiencies. There is a clear and present danger of further distress in Ghana's banking industry. With the impending commencement of deposit insurance cover for retail deposits, the State will no longer guarantee the redemp on of retail deposits of over GHc5,OOO. While it is public knowledge that several other banks are to ering on the brink of insolvency and consequent inability to meet their obliga ons to customers who have placed savings and investments with them, the public does not have informa on as to which banks remain fully safe havens for their deposits, and which banks are not. As a key part of our con nuous effort to provide readers with crucial informa on with which to make key financial decisions at the ins tu onal, enterprise and household levels, ECONOMY TIMES, is preparing for publica on a Special Sec on which will contain a selec on of 2O commercial ,banks which remain safe havens for customers savings and investments, amid the turmoil currently afflic ng much of Ghana's banking industry. The Special Sec on will be published in our edi on to be circulated na onwide. The edi on will thus serve as the only available reference guide for the banking public as to where they can keep their deposits without fear of losing them to bank illiquidity, insolvency, or outright failure over the coming months. It is being prepared using a combina on of in-depth, technical analyses of the current financial solidity of the various banks, and insider informa on and insights made exclusively available to us. Our selec on is not conclusive in that it will not iden fy all the banks that are safe havens because that would, by default, also irresponsibly iden fy the banks that are not safe havens which would consequently set off a run on their deposits. Rather our selec on will simply iden fy 2O safe op ons for depositors from which to choose. BOOKINGS As an invaluable reference guide, our special edi on will be highly sought a er by members of the banking public. Therefore it will be advisable to book your copies in advance to ensure your access to the crucial informa on and analyses it will contain. You can book copies in batches of at least three [3] copies in advance. This offer is available in Accra, Tema, Kumasi, Takoradi and Tamale. No pre-payments are required prior to your actual receipt of the copies on the aforemen oned publica on date. All that is required is a formal request and commitment to purchase a specified number of copies upon publica on.
To book your copies please contact: Elorm Desewu on O244279772/O5O7O96771 or Toma Imirhe on O553462978/O2696OO265. This is a must read reference guide publica on for Ghana's banking public. DO NOT MISS IT! Edition Et0411 MONDAY 11 JUN. - SUNDAY 17 JUN. 2018 Edition Et0411 MONDAY 11 JUN. - SUNDAY 17 JUN. 2018 15 Ghana drafts Action Plan for IFC to invest $60M in Ghana and compliance with Port State Agreement seven other African countries
he Food and Agriculture wood logging and other bad consumption is estimated w o u l d a l s o s u p p o r t t h e shing required collaboration h e I n t e r n a t i o n a l of the expenses being allocated Organisation (FAO) is agriculture practices threaten about 23–25 kg per year, which enhancement of national with key institutions, whose Finance Corporation to women-run businesses. Tsupporting Government livelihoods and lead to high is on the high side. means and competencies to work in the maritime domain (IFC) has announced a M r O u m a r S e y d i , I F C ' s to draft a National Strategy and rates of malnutrition, poverty “As many as 2.5 million people c a r r y o u t c o o r d i n a t e d includes the sea ports. T $60 million investment to Regional Director for Africa, Action Plan for its compliance and food insecurity, which are directly dependent on the monitoring, control and He said the marine sheries support small and medium- s a i d , “ E x p a n d i n g S M E with the 2009 Port State must be tackled with stringent sheries sector for their surveillance operations to have long been a pillar of sized business loans in Ghana nancing, especially in higher- A g r e e m e n t m e a s u r e s t o measures at national, regional livelihoods, which means that combat IUU shing through Ghana's coastal economy, and seven other African risk markets, is an important prevent, deter and eliminate and global levels. it is an important job creation PSMs and complementary contributing signicantly to countries. pillar of IFC's strategy for i l l e g a l , u n r e p o r t e d a n d He said it was for this reason sector,” he said. MCS tools. G h a n a ' s s o c i o - e c o n o m i c A press release to the Ghana Africa." unregulated shing. that FAO's support for the H e s a i d a n i m p r o v e d development, adding that the “FAO is privileged to be News Agency, last week said, "This facility will allow BOA to The National Strategy and country's efforts towards performance of the sheries associated with this noble sector generates over one the move is intended to provide more than 5,000 loans Action Plan is to lay out a plan of combating IUU shing comes and aquaculture sector in undertaking in support of billion US dollars in revenue facilitate growth and job to underserved SMEs over the action that identies existing in handy within FAO's core Ghana is therefore strategic countries efforts for them to be each year and accounts for at creation in the region. next ve years. It could have a gaps in relations to combating mandate to end hunger and and consequential for the able to rightfully use and least 1.2 per cent of the GDP. The funding will support Bank transformational impact on I l l e g a l , U n r e p o r t e d a n d m a l n u t r i t i o n t h r o u g h achievement of Sustainable manage their own natural “The sector also accounts for an Unregulated (IUU) shing and increased and improved Development Goals. resources in a sustainable estimated 2.6 million people or of Africa Group (BOA) loans to p a r t i c i p a t i n g c o u n t r i e s , steps to address these gaps and provision of goods and services He said the agreement reduces manner,” he said. 10 per cent of the population small and medium-sized including seven low-income to prevent, deter and eliminate from agriculture, forestry, the incentives for such vessels The FAO Representative e m p l o y e d d i r e c t l y o r (SMEs) enterprises in Ghana, countries and ve fragile and IUU shing by preventing sheries in a sustainable to continue to operate, while it emphasised that combating indirectly,” he added. Burkina Faso, Mali, Niger, conict-affected countries.” vessels engaged in IUU shing manner. also blocks shery products IUU shing should be a He commended the FAO and Senegal, Tanzania, Togo and According to ofcial gures, in from using ports and landing He said Ghana's acceding as derived from IUU shing from national and regional priority the Government of Norway for Madagascar. sub-Saharan Africa, where their catches. Party to the Agreement on Port r e a c h i n g n a t i o n a l a n d with strong commitment and spearheading the support for Supported by IFC's Womens' around 350 million new jobs Dr Abebe Haile Gabriel, State Measures, is an essential international markets. resolute action by Flag States, such an important initiative in Opportunity Fund (WEOF), will be needed over the next 20 Regional Programme Leader aspect of the government's “The effective implementation Port States, Coastal States and Ghana and globally. the investment will cover up to years, SMEs account for 30-60 f o r A f r i c a a n d F A O c o m m i t m e n t a n d of the agreement ultimately Market States. The agreement entered into 50 per cent the risk with an per cent of gross domestic Representative to Ghana, determination to combat IUU contributes to the long-term Mr Francis Kingsley Ato force on June 5, 2016, and as at amount equivalent to $ 120 product and 67 per cent of jobs. speaking at a workshop to shing. conservation and sustainable Cudjoe, the Deputy Minister, February 2018, there were 52 million in loans to SMEs in GNA formulate the National Plan of He said sh is an important use of living marine resources Ministry of Fisheries and State Parties and one-member these countries, including half Action said it was now obvious source of food security and and marine ecosystems,” he Aquaculture Development, organization. that continued practices of nutrition among Ghanaians; on added. said the efforts to deter, GNA illegal and unregulated shing, a v e r a g e p e r c a p i t a Dr Gabriel said the agreement prevent and eliminate IUU Recent depreciation of the Trade partners want new cedi is temporary - BoG Official
trade policy for Ghana he recent blip in the 21, the local currency had been there were no immediate plans f o r e i g n e x c h a n g e under pressure, particularly to externalise the payments. market that has seen a the cedi against the dollar. “The BoG is engaging the n d u s t r y , t r a d e a n d currently stands at 12%, while series of meetings the groups T slight depreciation of the cedi The cedi opened on the management of MTN Ghana to commerce players have the unemployment rate want to hold to discuss an against the dollar is short-term interbank market on Tuesday ensure that any Foreign Iblamed the current trade among the youth is at 25%. action plan for their agenda. and a reection of a spillover last week at 4.43 cedis to the exchange outows arising policies in force for the high Speaking to Citi Business On his part, President of the from external developments, dollar while the Forex Bureaux from this transaction is done in level of unemployment in the N e w s a f t e r a b r e a k f a s t AGI, Dr. Yaw Adu Gyam an ofcial of the Bank of Ghana were quoting it at 4.65 cedis to a phased and orderly manner,” country. m e e t i n g a s p a r t o f t h e said government has failed to has said. the dollar. he said, adding that even if The sector associations' have collaborative efforts, a d d r e s s t h e h i g h Mr Steve Opata, the Director, “In the case of Ghana, we there are some externalisations therefore resolved to team up Executive Secretary of the unemployment rate in the Financial Markets Department, strongly believe that staying on we will work with them so that t o m o u n t p r e s s u r e o n TUC, Dr. Yaw Baah, said the country. told a section of the media that track with government's scal it is done in a gradual manner government to change the individual associations have “We have to look at the trade changes in global nancing consolidation plan, the strong so as not to shock the system. country's trade policy. not been able to effectively policies and see how we can conditions, due to rising oil trade surplus, narrowing “ I d o n ' t t h i n k m a r k e t The associations include; the demand for change, hence the promote local investors prices and hikes in US interest current account balances, participants should be too Trades Union Congress(TUC), need for the consolidation. because they will create jobs. rates, were impacting frontier s i g n i c a n t b u i l d - u p i n concerned that this will A s s o c i a t i o n o f G h a n a “The talking must end, let us But if you always look at market economies in Sub- international reserves (now dislocate the market because it I n d u s t r i e s ( A G I ) , G h a n a rise up. Let us put pressure on people to bring things into the Saharan Africa. standing at US$8.1 billion and would be done in an orderly N a t i o n a l C h a m b e r o f our government to do the country, then you are creating However, he said, Ghana is in a 4.4 months of imports cover), fashion,” Mr Opata added. C o m m e r c e , a n d t h e right thing. Most of our jobs for other countries strong position to overcome and declining ination rates, H e s a i d t h e B o G w o u l d continue to assess the market Association of Employers. failures are because our because these investors come the exchange rate volatility due should moderate this impact,” and support with liquidity According to the group, the policies have failed. If you to sell products from their t o e x c e l l e n t e c o n o m i c he said. fundamentals and a good On fears of some market when necessary, adding that, current trade policy favours have policies that fail, then countries, Dr. Adu-Gyam external payments position. participants that MTN's the global and domestic importation, affecting local they are not good policies.” noted. “We want to assure the market p a y m e n t s t o e x t e r n a l developments do not yet pose a production and ultimately Dr. Baah added that “the trade The group is hoping to set up that we have adequate reserves shareholders from the initial threat to ination in Ghana in l e a d i n g t o a h i g h we do now in Ghana is only a committee made up of and the fundamentals do not public offering could impact the near term, and that, the BoG unemployment rate in the for imported goods. If we representatives from all the support the slippages we have negatively on the exchange is monitoring the situation to country. want to create jobs for our associations to put together a seen and we expect it to correct rate, Mr Opata said the BoG take appropriate policy actions Some statistics show that the framework to begin the children then we have to go itself,” he said. had received assurances from as required. rate of unemployment among back to industry.” process. From the week beginning May management of MTN that GNA t h e g e n e r a l p o p u l a t i o n The meeting is the rst of the 14 Edition Et0411 MONDAY 11 JUN. - SUNDAY 17 JUN. 2018 NEWS Edition Et0411 MONDAY 11 JUN. - SUNDAY 17 JUN. 2018 NEWS 11 Portuguese business Government dedicated to promoting delegation to invest in Ghana on-farm productivity – MoFA Director he government, through (ICT) in agriculture sector were agriculture was very crucial in i n t h e s o c i o - e c o n o m i c the programme, the project the Ministry of Food and amongst the major factors African countries owing to the transformation of our country extension ofcers would be h e P o r t u g u e s e strengthen relationships and and prosperity for all. t h e G h a n a i a n e c o n o m y ; against expropriation, custom TAgriculture (MoFA), is stiing productivity in the fact that the soil was perceived Ghana. provided with motorbikes to Association of Metal and chart the way forward as far as To this end, government has establishment of industrial duty exemption on plant, dedicated to promoting on- agriculture sector. to be the poorest in the world. Mr Samuel Oduro-Asare, facilitate their work. TE l e c t r o m e c h a n i c a l investment was concerned. outlined a 10-point agenda to parks and special economic machinery and equipment. farm productivity through He said in an effort to resolve He said the programme had C o u n t r y M a n a g e r , O C P M r W i l l i a m A w u k u Industries has expressed Ms Correia said their outt had transform the industrial sector zones in each of the ten regions “There is strong government intensication of targeted t h e s e c o n s t r a i n t s , t h e increased farmer's access to Ghana, said the programme Ahiadormey, Chief Executive interest to invest in the e x p e r t i s e i n t h e of the national economy that (One Region, One Park); and support for investment and our crops; thereby, ensuring job government in 2017, launched a fertilizer, reduced their cost of holds a transformative offer to Ofcer, Cropcare Ghana country's manufacturing and manufacturing, engineering, would create job opportunities promoting small and medium- legal framework is transparent creation in agriculture and agship programme dubbed production to fertilizer input the nation's farmers, youth and Limited, challenged Ghanaian infrastructural sector for agriculture and other sectors for the teeming unemployed scale enterprise development. to ensure the success of every other related sectors. 'Planting for Food and Jobs and enabled farmers to apply any other group or individuals farmers to rise up and produce mutual benets. and would provide assistance youth and ensure prosperity Mr Edward Asong-Lartey, investor,” he added. Dr Seth Osei Akoto, Director of Campaign' (PFJ). the right quantities of fertilizer. interested, not just in farming, e n o u g h f o o d c r o p s f o r The Association has expertise and support through technical for all Ghanaians. Director of Investor Services, Mr Ernest Agyapong, the Team Crops, MoFA, said agriculture He said the PFJ programme H e n o t e d t h a t r e s e a r c h but who aspire to be successful domestic consumption and the i n t h e m e t a l a n d services, and enhance the He mentioned the industrial Ghana Investment Promotion Leader for One District One had long provided a rm provides a framework for conducted by Peasant Farmers at it. export market. electrochemical sector and will development and progress of agenda was anchored on the Centre, assured the delegation Factory policy, said the foothold for Ghana's economy, engaging farmers through a Association of Ghana years ago He said to ensure effective GNA b e r e a d y t o s t r e n g t h e n activities in the companies. following areas: building of an enabling environment for initiative was aimed at creating stating that growth in the private sector-led agricultural on the impact of fertilizer monitoring and supervision of institutional collaboration to She said the Association was competitive businesses of investment, adding that Ghana jobs for Ghanaians through the contribution of the agriculture value chain development. subsidies revealed that, small e x p l o r e i n v e s t m e n t r e a d y t o p r o m o t e a n d existing local industries by w a s t h e s e c o n d l a r g e s t setting up of factories and s e c t o r t o n a t i o n a l G r o s s “The programme is governed scale farmers, especially, opportunities. encourage vocational training facilitating access to medium economy in West Africa with industries, and welcomed the Domestic Product (GDP) in by demand and market-driven women's livelihoods had Ms Maria Luis Correia, the and development of human and long term nancing at low market access to the over 350 investors to collaborate to recent years, however, had a p p r o a c h e s t h a t l e a d t o improved and these farmers Head of the Delegation, said resources in the metallurgical i n t e r e s t r a t e , a n d million strong ECOWAS move the country towards consistently declined. increases in adoption of quality were experiencing a reduction this in Accra when an eight- and electromechanical sector. i m p l e m e n t i n g t h e O n e market. greater industrialization. “Trends in production of major seeds of improved varieties, in poverty and an increase in member delegation called at the M r E b o Q u a y s o n , T e a m District, One Factory initiative He said Ghana was opened for He said the policy aimed to food crops such as maize, rice fertilizers and good agronomic their income, albeit at a slow Ministry of Trade and Industry Leader, Export Trade and d e s i g n e d t o b r i n g doing business and urged transform the structure of the and sorghum show that on- practices as well as marketing of rate. t o d i s c u s s b u s i n e s s Investment at the Ministry of i n d u s t r i a l i s a t i o n t o t h e them to explore in areas such as economy from one which was farm productivity has stagnated farm produce while building a H e u r g e d f a r m e r s a n d opportunities between the two Trade and Industry, said doorsteps of the people. agriculture, manufacturing, dependent on production and and the exploitable difference critical knowledge base and agribusiness community to countries. government had designed Mr Quayson enumerated education, ICT, health and export of raw materials to a b e t w e e n t h e a c t u a l a n d strengthening systems that will take maximum advantage of She said the delegation was to policy reforms to make Ghana other initiatives, including energy. value-added industrialised potential yield of most crops has further catalyze private sector the opportunities being offered have a rst-hand interaction the most business-friendly introduction of strategic Mr Ashong-Lartey assured the economy, driven primarily by widened,” Dr Osei Akoto stated p a r t i c i p a t i o n a n d f u l l b y t h e ' A g r i b o o s t e r ' with key companies in the nation in Africa to accelerate anchor industrial initiatives to delegation of investment the private sector. at the launch of the OCP Africa engagement in the agriculture programme of OCP Africa so m a n u f a c t u r i n g s e c t o r t o socio-economic development create new growth poles for incentives such as guarantee GNA Agribooster programme in sector,” he said. as to increase productivity of Accra. He said the use of fertilizer in major crops and ultimately aid “Improving yields of these priority crops will allow OCP Africa launches Agribooster farmers to meet demand for Capacity to adapt is crucial for sustainable feed, food and jobs (both rural and urban), while minimizing the pressure on the need to development - World Development Report programme for Ghanaian farmers bring large amounts of new land into crop production.” he World Development And why do some bad policies is excluded, and what barriers among elites and greater g r i b o o s t e r fertilizers. Wednesday, said improving transformation of our country He said to ensure effective OCP Africa is a subsidiary of the R e p o r t 2 0 1 7 : endure?” block entry to the policy arena citizen engagement, as well as programme, meant for The package would be offered yields of these priority crops Ghana. monitoring and supervision of Moroccan phosphate Group, a TGovernance and the It addresses these fundamental determine the selection and b y i n t e r n a t i o n a l a c t o r s farmers to boost food to lead farmers, who would would allow farmers to meet Dr Osei Akoto, also formally the programme, the project company committed to the Law has said the capacity to questions, which are at the implementation of policies and, s u p p o r t i n g r u l e s t h a t A development of the agricultural adapt, both politically and heart of development. consequently, their impact on strengthen coalitions for production in Ghana, has been also benet from training in demand for feed, food and jobs cut the tape to commission the extension ofcers would be launched in Accra last week by G A P a n d f a r m i n g a s a (both rural and urban), while motorbikes for the project's provided with motorbikes to ecosystem in Africa. economically, is crucial for It said policy making and development outcomes.” reform. OCP Africa, a subsidiary of the business. minimizing the pressure on extension ofcers. facilitate their work. The farmer-centred market sustainable development. policy implementation do not The 300-page report said D r W e t z e l s a i d t h r e e Moroccan Phosphate Group, a The regular Agribooster the need to bring large Mr Samuel Oduro-Asare, M r W i l l i a m A w u k u development model called the According to the report high occur in a vacuum; but rather, e x c l u s i o n , c a p t u r e , a n d institutional functions - company committed to the package consists of fertilizer amounts of new land into crop C o u n t r y M a n a g e r , O C P Ahiadormey, Chief Executive 'Agribooster Offer' aims at priority should be given to the they take place in complex clientelism were manifestations commitment, coordination and development of the agricultural and cascaded training on GAP production. Ghana, said the programme Ofcer, Cropcare Ghana supporting smallholder farmers continuous cultivation of political and social settings, in of power asymmetries that lead cooperation - matter for policy ecosystem in Africa. and farming as a business. He noted that the programme holds a transformative offer to Limited, challenged Ghanaian get access to good quality inputs a d a p t i v e p o l i c i e s a n d which individuals and groups to failures to achieve security, effectiveness. The farmer-centred market This training is to be delivered was governed by demand and the nation's farmers, youth and farmers to rise up and produce and nancial services, enhance institutions. with unequal power interact growth, and equity. The presentation was followed development model, called the by the lead farmers. market-driven approaches any other group or individuals e n o u g h f o o d c r o p s f o r market linkages and benet Dr Deborah Wetzel, Senior within changing rules as they It said the distribution of power by a roundtable on the theme 'Agribooster Offer, aims at The objective of the package is a n d l e d t o i n c r e a s e s i n interested, not just in farming, domestic consumption and the f r o m t r a i n i n g o n g o o d Director, Governance Global pursue conicting interests. i n s o c i e t y w a s p a r t l y “Improving Good Governance s u p p o r t i n g s m a l l h o l d e r to also demonstrate the impact adoption of quality seeds of but aspires to be successful at export market. agricultural practices. P r a c t i c e , W o r l d B a n k , T h e p r o c e s s o f t h e s e determined by history; yet, to Meet Today's Development farmers to get access to good o f t r a i n i n g a n d g o o d improved varieties, fertilizers it. GNA The programme's end goal is to presented ndings of the report interactions is what this Report there was room for positive Challenges” - solutions as to quality inputs and nancial application of fertilizers on and good agronomic practices help farmers increase their in Accra. calls governance, and the space change. how Ghana could revive its old services, enhance market farm yields, and eventually, as well as marketing of farm y i e l d s a n d h e n c e , t h e i r The report deals with the topics in which these interactions T h e r e p o r t r e v e a l s t h a t culture and ethos of integrity, linkages and benet from convince farmers to switch to produce. revenues. such as governance and the law; take place, the policy arena. governance could mitigate, t r a n s p a r e n c y a n d training on Good Agricultural t h e “ A g r i b o o s t e r P l u s ” He explained that it also built a Under the programme, two “why are carefully designed, It said the capacity of actors to e v e n o v e r c o m e , p o w e r accountability to ght the Practices (GAP). package. critical knowledge base and agricultural inputs packages sensible policies too often not commit and their willingness asymmetries to bring about governance challenges it faces The programme's end goal, is to The overall goal of the project strengthened systems that namely “Agribooster” and adopted or implemented? to cooperate and coordinate to m o r e e f f e c t i v e p o l i c y based on World Development help farmers increase their is to enhance a sustainable would further catalyze private “Agribooster Plus” would be When they are, why do they achieve socially desirable goals interventions that achieve Report 2017: Governance and y i e l d s a n d h e n c e , t h e i r f a r m e r e c o s y s t e m a n d sector participation and full introduced to farmers. o f t e n f a i l t o g e n e r a t e a r e w h a t m a t t e r f o r sustainable improvements in The Law. revenues. consolidate availability of high engagement in the agriculture Dr Osei Akoto said studies development outcomes such as effectiveness. security, growth, and equity. The discussants were Prof Under the programme, two quality agricultural inputs sector. undertaken by MoFA revealed security, growth, and equity? “However, who bargains, who It said this happens by shifting H e n r y K w a s i P r e m p e h , agricultural inputs packages (fertilizers, seeds and crop H e u r g e d f a r m e r s a n d that low accessibility and the incentives of those with Executive Director, Centre for namely “Agribooster Plus” and protection chemicals) and agribusiness community to inadequate use of certied p o w e r , r e s h a p i n g t h e i r Democratic Development – A g r i b o o s t e r w o u l d b e services (training, nance and take maximum advantage of seeds, insufcient nutrient preferences in favour of good Ghana; Mr Ko Abotsi, Dean of introduced to farmers. take-off). the opportunities being fertilizer application, lack of outcomes and taking into GIMPA Law School; and Dr T h e “ A g r i b o o s t e r P l u s ” Dr Seth Osei Akoto, Director of offered by the 'Agribooster' extension services to farmers, a c c o u n t t h e i n t e r e s t s o f Bossman Asare, Head of package is a compressive Crops, Ministry of Food and programme of OCP Africa; so w e a k l i n k a g e s b e t w e e n p r e v i o u s l y e x c l u d e d Political Science Department, package consisting of high Agriculture (MoFA), who as to increase productivity of producers and markets, and participants. University of Ghana. performing hybrid seeds, crop o f c i a l l y l a u n c h e d t h e major crops and ultimately aid limited use of information and It said these changes could GNA protection chemicals and programme in Accra on i n t h e s o c i o - e c o n o m i c communication technology come about through bargains 12 Edition Et0411 MONDAY 11 JUN. - SUNDAY 17 JUN. 2018 FEATURE Edition Et0411 MONDAY 11 JUN. - SUNDAY 17 JUN. 2018 FEATURE 13
By: Adnan Adams Mohammed
i n c e G h a n a s t a r t e d commercial production Sof oil, the expectations from most Ghanaians including Petroleum contracts fiscal regime: economists, politicians, civil society groups and ordinary citizens were those of high optimism. Some even thought the country will be a 'Dubai' replicate of Africa using the are we getting better with age? earnings from the oil. more attention to these in order B u t , a f t e r 1 1 y e a r s o f to have a stronger bargaining Table of selected oil block contracts and their scal regime is provided below: exploration and production of chip. Like any FDI in all oil and gas from three oil elds sectors of the economy, any oil (Jubilee eld, TEN eld and block or eld signed brings ENI eld), there appears to be a jobs, tax revenue, crude oil and wide gap between reality and g a s s a l e s , a d d i t i o n a l the expectations that people investments, which results in had. Admittedly though, there economic growth and maybe is appreciative record of foreign economic development. But direct investment (FDI) which more importantly, the better in 2011 contributed to the over the terms of the agreements, 14% growth of the economy the better the benets derived. and also contributed heavily to the 8.4% GDP growth recorded Are we getting any better with in 2017. new contracts? The Finance Minister Mr. Ken Granted that we were novices Ofori Atta in last year's budget some ten years ago, how about stated that, total petroleum now? Experts say Ghana's receipts were approximately western offshore area has been US$3.2 billion as at 2016. de-risked after the second oil Though this is additional e l d , T E N , c o m m e n c e d money that was not available to c o m m e r c i a l p r o d u c t i o n . the country, people argue that Expectedly, the power and Ghana could have gotten more s k i l l s o f t h e n a t i o n a l if we negotiated better. negotiation team for oil block The US$3.2 billion receipt is contracts should improve to about 4 percent of Ghana's secure better deals and draw in From the table above a critical and signing of the ExxonMobil Contractor's VAT liability Gross Domestic Product (GDP). more revenue and benets to trend analysis of the scals of contract. It should be stated waiver. Although this provides an the country. However, a trend the ve selected oil block though that Government has Again, authorization of 100% additional stream of income for a n a l y s i s o f t h e v a r i o u s c o n t r a c t s d e p i c t s a m i x indicated that the ExxonMobile repatriation of earnings in all the government, it is relatively contracts signed does not j u d g e m e n t o f i m p r o v e d contract in the public domain is the contract agreements is small compared to non-oil suggest that we have gotten benets to the country. With different from what they are really a disturbing situation for revenues over same period, better with experience. the Jubilee Field and TEN working with, although it has the economy. It affects the value most of which come from the The petroleum scal regime is elds, their scal terms in their failed to produce what they of the local currency as well as mining and agriculture sectors. a set of laws, regulations and agreement are almost the same claim is the authentic contract. d e p r i v e s t h e c o u n t r y o f The US$3.2 billion can also be agreements which governs the with exception of Paid Interest A c c o r d i n g t o D r . S t e v e s u p p o s e d b e n e t o f considered not signicant economic benets derived where that of Jubilee eld is M a n t e a w , e n e r g y p o l i c y reinvestment of prots in other compared to the investment in from petroleum exploration 3.64% and TEN eld had 5%. analyst and Public Interest and sectors of the economy to help the oil and gas sector in Ghana and production. The regime Also, ENI eld had almost the Accountability Committee in the even growth of all sectors since exploration began over a regulates transactions between same agreement with both Chairman, ExxonMobil being of the economy. d e c a d e a g o , w i t h m a n y the political entity and the legal Jubilee eld and TEN eld but allowed to recover cost over 10 There are also instances where suggesting that Ghana could entities involved. had their Carried Interest at years appears to over-ride the provisions in contracts conict have gotten more from the The scal regime within the 15% while Jubilee and TEN provisions of Section 67(6) of and more often than not resource. country's petroleum sector Carried Interest were both the Income Tax Law and its overrides the national laws. Dr The excuse of attracting FDIs include; paid and carried 10%. rationale. According to income Manteaw who also serves as A look at the various petroleum interest, royalties, corporate Springeld contract, signed tax law, nancial cost recovery Co-Chair of Ghana Extractive agreements shows that a income tax, surface rentals, later, offered Ghana a better is supposed to be 20% straight- Industry Transparency Index number of incentives were income tax (PAYE), bonus deal among the rst four line method which is ve years (GHEITI) argues that this given to the oil companies. payment and additional oil contracts (Jubilee, TEN, ENI). strictly. practice of using oil contracts to Government argues that such entitlement, property rates of This showed an improvement Also, the sweeping nature of re-write the law of the industry incentives were intended to landed assets among others. in the trend analysis of the waivers in all the contracts as in the case of exempting attract the International Oil According to the International scals. Logically, it was really disadvantage Ghana: Tax some companies from the Companies (IOCs) as Ghana Monetary Fund (IMF), scal anticipated that subsequent liability waved on all export of provisions of Section 67.6 of the was not a known oil producer. regimes for countries vary contracts will also indicate an petroleum from Ghana; No Income Tax Law, undermines However, it is important to note greatly with a wide range of i m p r o v e m e n t o v e r t h e duty or other charges are levied the rule of law of the country. that key determinants of instruments being used. previous ones. But that was not on such export, including He adds that, going forward, it Foreign Direct Investment “Country circumstances t o b e . T h e E x x o n M o b i l vessels used in transporting the will be useful for an upstream (FDI) inow go beyond scal require tailored advice, but a contracts currently in public crude; Tax liability waved on c o s t / b e n e t a n a l y s i s t o i n c e n t i v e s ; t h e y i n c l u d e regime combining a royalty domain, looks worse off than all imports of plant, equipment compute or estimate the total maturity of geological basins, and a tax targeted explicitly on that of Springeld. This has and materials for the project. tax expenditure as against availability of geological data, rents (along with the standard been a shock to most oil experts This is, however, on condition r e v e n u e , i n t h e v a r i o u s track record of exploration corporate income tax) has who were expecting that that the national oil company, agreements to inform policy successes, skilled labour, level appeal for many developing Ghana could have gotten a GNPC shall have the right of and new contracts, as he thinks, of infrastructure development, countries”, Carlo Cottarelli of better scal term than that of rst refusal for these goods, yet Ghana could be giving out too and efciency of the services I M F ' s F i s c a l A f f a i r s Springeld which was the this is not in the best interest of much to the investors. sector. May be we should pay Department has said. latest before the negotiation Ghana; and same as the