Business

Source: tntnewspapergh.com

The Convenor of United Voices for Change,Mr.Sylvestin Ronald Antwi,has organized a press conference on the current deplorable state of the Ghanaian State-Owned Enterprises(SOEs).

Making reference to what Daisaku Ikeda once said “Our voices resonate with life. Because this is so, it can touch the lives of others. The caring and compassion imbued in your voice finds passage to the listeners soul, striking his or her heart and causing it to sing out; the human voice summons something profound from deep within, and can even compel a person into action”.

Speaking to the media at True Vine hotel on Tuesday,23rd April,2024, Ronald Antwi, said
State-owned enterprises (SOEs) significantly impact the economy, often playing major roles in key sectors such as energy, agriculture, infrastructure, transportation, telecommunications among others. Explaining that SOEs performance affects economic growth, government finances, and overall investor confidence.

 

The Convenor said the United Voice for Change, as voice of reasoning, a voice of conscience and the voice for the ordinary Ghanaian, is deeply concerned about the apparent mismanagement and financial losses incurred by key SOEs in Ghana. Recent reports from the Auditor-General have revealed alarming figures showcasing the deteriorating financial health of these entities which are crucial for the country’s development and economic stability.

He said for example,, Cocobod, a vital player in Ghana’s agricultural sector, has been recording substantial losses over time. In 2017, Cocobod made a loss of GHS 161.3 million, although its revenues had increased to GHS 10.25 billion from GHS 9.15 billion in the previous year.

The company also made losses of GHS 78.22 million in 2018, GHS 320.57 million in 2019, GHS 426.32 million in 2020 and a staggering GHS 2.44 billion in losses in 2021. Meanwhile, this was a company that had made reasonable profits of GHS 329.3 million and GHS 152.15 million in 2014 and 2015 respectively.

According to Mr.Antwi,the losses which began in 2016 are ballooning by the years, reaching GHS 2.44 billion in 2021.
Also, the Ghana Water Company Limited, responsible for providing safe and reliable water services to the population, has equally faced significant challenges. A company which had made a profit of GHS 101.14 million in 2016 has been turned into a loss-making machine, registering losses of GHS 692.2 million in 2017, GHS 667.9 million in 2018 and a staggering GHS 2.6 billion in losses in 2019. In 2020, the company made losses to the tune of GHS 939 million, although its revenues in that year had increased to GHS 1.3 billion from GHS 902 million in the previous year.

Furthermore, ECG, tasked with providing electricity to the nation, has also experienced a decline in performance.

He revealed that ECG reported a loss of Gh¢1.914 billion in 2021, having made profit of GHS 181 million in the previous year.

” The company also made losses of GHS 1.47 billion and GHS 2.27 billion in 2019 and 2018 respectively. This demonstrates a clear failure of leadership and a lack of accountability within the organization.

He lamented that Ghana Airport Company is another culprit.

According to him,the company has consistently made losses since 2019. From losses of GHS 231.34 million in 2019, the losses almost doubled in 2020, reaching GHS 434.77 million. In 2021, the company’s losses were a little over GHS 252 million.

To buttress his argument,he quoted Maya Angelou ,who once said “Words are more than what is set down on paper. It takes the human voice to infuse them with deeper meaning” the increasing losses of these entities has a significant repercussion on the country’s economy.

These repercussions include but not limited to the following:
Financial Drain: When SOEs make losses, the government is required to financially support them to sustain their operations.

He said Myjoyonline’s publication on April 10, 2024, which reads “GNPC may not survive if government ceases to support corporation after 2026-IPAC”, is really disheartening. Funds that can be channelled or allocated to other critical areas such as infrastructure development, healthcare, and education is going to be used to support an SOE, which is a profit-oriented entity and was established to make profit. How did we get here?

The rest of the statement reads”increased Debt and Reduced Investment: If SOEs are unable to cover their costs and sustain operations, they may resort to adding up to the national debt, which will lead to an increase in national debt levels, and ultimately putting pressure on the country’s financial stability. Indeed, the inclusion of the indebtedness of these SoEs in Ghana’s Debt Sustainability Analysis (DSA) saw a deterioration in the country’s Debt to GDP ratio, threatening the sustainability of the country’s debt over the medium to long term. The continuous debt distress could potentially deter foreign investors from investing in the country.

Erosion of Public Confidence: Continued losses among SOEs will erode public confidence in the government’s ability to manage the economy effectively. This can lead to a loss of trust in government institutions and policies, affecting overall economic stability.

These are signs of issues with the government’s business practices, which also raises concerns about the commitment of the government towards the efficient running and sustainability of SOEs.

What is evident is that our State-Owned Enterprises are underperforming; this has drained the country’s resources and plunged the country into underdevelopment and indebtedness.

Undisputably, SOEs are profit-oriented entities and should be making profits. Sadly enough, it appears the managers of these enterprises are more loyal to their appointing authorities than to the development of the companies, leading them to deliberately run SOEs at a loss.
The increasing losses and the lack of measures to curtail it suggest a deliberate attempt by politicians to push the CEOs of these SOEs to run the enterprises into a ditch, and later engage in corrupt practices of selling off the devalued SOEs to themselves.

Also, SOEs have been an avenue for rewarding party apparatchiks. Appointments to State-Owned Enterprises in Ghana have become a means of rewarding political loyalty rather than appointing qualified individuals who are enthusiastic about working for the growth of these enterprises. SOEs are underperforming because the CEOs of these enterprises, when appointed, face pressure from politicians to do their bidding.

We cannot say SOEs are running at a loss without speaking about their leadership. The means of appointing CEOs to manage the various SOEs is terribly flawed and needs to be investigated. Ladies and gentlemen, Bad leadership and poor management of the state resources by government officials elected or appointed into high offices has today turn almost 60% of the Ghanaian girls into hookups due to the distress in the economy and the difficulties in finding employment.

The behaviour of any organization is a reflection of its leadership. You cannot take the management of SOEs away from the mess created. The leadership of these enterprises has engaged in gross mismanagement and needs to face the consequences. Issues relating to conflict of interest, procurement fraud, spending without board approval, and procurement of items that have not been planned for, as well as contracting of loans without going through the due process, are all considered fraudulent acts and must be investigated.

United Voice for Change believes that SOEs are an integral part of nation building and play a crucial role in supporting the government’s development agenda. However, the current state of affairs within these entities is unacceptable and requires immediate action especially from our president because, as the president, he (H.E. Nana Addo Dankwa Akuffo Addo) is the elected CEO of all the Ghanaian State Enterprises and therefore, his major responsibility and ultimate goal at this crucial moment, is to ensure the smooth and successful running of these companies with high returns and at worst, break-even but shockingly and surprisingly enough, H.E. Nana Akuffo Addo as the elected CEO seems to be celebrating and rewarding gross incompetence, total failure and mismanagement of the company’s resources by his appointees, and I ask, WHAT KIND OF A CEO IS THIS?

It is with great urgency backed by verifiable data, facts and figures that we call for the dismissal of the CEOs of the Ghana Cocoa Board (Cocobod), Electricity Company of Ghana (ECG), Ghana Water Company Limited, and Ghana Airport Company. These individuals have presided over a period of financial decline and recklessness and have failed to fulfil their mandates of ensuring profitability and revenue generation for the state.

It is a results of this clear thievery and gross disrespect for Ghanaians, that Ghana, a country which once upon a time was revered and celebrated across the globe for its high moral standards and God-fearing nature with so much peace, economic freedom and easy access to employment has today sadly turn into a gambling country due to the bad leadership and unprecedented poor governance and management of state companies happening today and therefore we plead on behalf of all the innocent Ghanaians, for the president, Nana Addo Dankwa Akuffo-Addo, and his Attorney General to ensure that the CEOs of these entities, after being dismissed, face the law.

In conclusion, we believe that, the CEOs of the various SOEs in Ghana today are bolden and with much courage to steal, loot and deliberately collapse all state companies which are financed with the tax payer’s money solely because perhaps, the president and the presidency may only be interested in the kickbacks (if any) they receive from the CEOs ahead of the ultimate interest of the over 32 million Ghanaians reasons they have been looking on. Ladies and gentlemen, our president is directly supervising and superintending over this unprecedented thievery and unholy crime meted on Ghanaians.
United Voice for Change calls on the government to take swift and decisive action to address the issues of financial mismanagement within SOEs. The dismissal of the CEOs of Cocobod, ECG, GACL, and Ghana Water Company Limited is a necessary first step towards restoring accountability and ensuring the sustainable growth of these vital institutions.

Long Live Ghana
Long Live United Voices for Change
Thank you
…………………………
Sylvestin Ronald Antwi
Convenor
02430843

The International Monetary Fund (IMF) Mission Chief for Ghana, Stéphane Roudet, has indicated that Ghana’s economy has seen its worst level and it’s now set for full recovery.

However, he said this projection is based on the “government continuing to implement the IMF programme the way it has been done over the past year, then we can say that we have now seen the worst for Ghana ‘s economy.”

The IMF Mission Chief was responding to a question posed by JOYBUSINESS in Washington DC USA on concerns that there could be some blips and shocks to the economy, due to the current developments in the global economy.

Stéphane Roudet

While responding to concerns that the current recovery that Ghana is experiencing might be short-lived, the IMF Mission Chief for Ghana, disagreed.

He, however, maintained that fully restoring macroeconomic stability is all about the programme being implemented strictly by the government.

Ghana’s performance under the programme

The Mission Chief For Ghana, Stéphane Roudet, also revealed that “Ghana is overperforming under the IMF programme and that is good.”

“Ghana’s programme is delivering on its promises and in fact, it is over-delivering” the Mission Chief added.

“Growth is also doing better than what we have forecasted and that is also influencing our decision to review our forecast” he noted.

He said the development is going to prompt them to even review the growth forecast for Ghana for 2024, saying inflation ended last year better than what they had projected.

“We are also surprised as to how growth has performed under Ghana’s programme” the Mission Chief added.

He said this was never evident, at the beginning of Ghana’s programme.

“The required revenue is being raised, the Bank of Ghana is also doing its part to ensure that, and inflation is brought under control and that is good for the programme”, he noted.

The Mission Chief for Ghana also added that “the external position has also been doing very well; fiscal position is also adjusting in line with the programme working and delivering on its promises.”

“Everything is moving in the right direction and this is something that was not considered at the beginning of the IMF programme.”

Mr Roudet continued that, this performance has also been influenced by Ghana’s commitment and seriousness about implementing the programme.

Restoring confidence in Ghana’s economy and reactions from rating agencies

The IMF Mission Chief for Ghana said that for confidence in Ghana’s economy to be fully restored and seen through the lens of various actors such as rating agencies and development partners, it will be anchored on the full implementation of the IMF programme going forward.

“If the macroeconomic development unfolds as we planned in the IMF programme, then definitely we should expect them to respond as well as all agencies” the Mission Chief added.

“We are not only looking at the rating agencies responding, Ghanaians as well, domestic stakeholders, then everyone will realize and that will boost confidence in the economy.”

On growth and other projections captured in reports released during the IMF/World Bank spring meetings, Stéphane Roudet noted that those were based on “old assumptions.”

He therefore said the country should expect new numbers when they launch the Regional Economic Outlook.

“We believe that the economy will perform better than had been projected” Ghana Stephan Roude reiterated.

He added, “Ghana has a growth potential average of 5 per cent going forward in the medium term.”

“Gradually, Ghana will be able to get back to its growth potential going forward” the Head of Mission concluded.Source: George Wiafe [Reporting from Washington DC, USA]

 

 

 

 

 

 

Source: Ernest K. Arhinful

 

The governing board of the Electricity Company of Ghana (ECG) has responded to fines levied against them by the Public Utilities Regulatory Commission (PURC) for the company’s failure to provide a load-shedding timetable.

In a letter addressed to the PURC on Wednesday, April 17, lawyers representing the board members challenged the authority of the Commission to impose fines, arguing that it lacks the powers equivalent to those of the High Court.

The legal representatives emphasised that the board members, who are not directly involved in the day-to-day operations of the company, should not be held personally liable for the actions taken by management.

Furthermore, the lawyers contended that the fines were imposed without affording the board members an opportunity to present their case or provide input, thereby violating the principles of natural justice.

The letter underscored the board members’ refusal to accept any personal responsibility for the operational decisions made by those in charge of the company’s daily affairs.

It expressed strong objection to the actions taken by the PURC, asserting that such measures are unjust and unacceptable.

“The Commission’s Order imposing regulatory charges on the members of the board is unlawful, null and void as same is without jurisdiction. By this Order, the Commission has unlawfully clothed itself with the powers of the High Court, and imposed a sentence on the board members, without having been given the opportunity to be heard which amounts to a breach of the rules of the natural justice.””Our clients, therefore, reject the contents of the regulatory order relative to any personal liability on their part,” an excerpt of the letter stated.

 

Source: George Wiafe Washington DC USA

Ghana has secured a Memorandum of Understanding (MoU) from the bilateral creditors on restructuring of their debts.

This was after members of the official creditor committee and Ghana’s bilateral creditors managed to secure the necessary approvals from their respective countries and Parliament on the terms for restructuring Ghana’s debts as agreed earlier this year.

Joy Business understands the committee will soon come out with a statement to confirm the deal.

Sources say even though the deal was reached in February 2024, the MoU was however delayed due to the drafting of the agreement.

Background

Ghana in January 2024, secured “an agreement in principle” with the bilateral creditors under the G20 Common Framework debt treatment.

This helped the country in completing the first review under the IMF programme.

Ghana received $600 million in addition to some $300 million from the World Bank under the Development Policy Operation Financing.

This paved the way for the government to move on and work out the MoU between Ghana and its Official Creditor Committee on the terms for restructuring a 5-billion dollar debt.

IMF MD on bilateral debt negotiations

The Managing Director of the IMF, Kristalina Georgieva, during a recent visit to Ghana, revealed that the country was close to signing an MoU with the bilateral creditors on the restructuring of the debt.

“Ghana is in a good place now, because it has advanced negotiations with the bilateral creditors on restructuring of debts”.

“There are very tangible progress towards signing a Memorandum of Understanding with Bilateral creditors”, she added.

She stated that reaching a deal with the creditors, should provide the space for government to spend on critical areas to help stabilize the economy.

Impact on Ghana’s IMF programme

If the Official Creditor Committee Co-Chaired by France and China are able to issue the MoU, the development could fast track the process for the IMF second review report to reach the Management and the Board in June 2024 for approval.

This will aid in the release of some $360 million to Ghana.

The disbursement could help improve Ghana’s International Reserves.

It will also send a positive signal to donors and the investor community.

IMF MD on negotiations with private creditors

Ms. Georgieva advocated for Ghana to be tactful in the debt negotiations with Eurobond holders and commercial creditors.

In her earlier meetings with President Akufo-Addo in Ghana, she cautioned against steps that could jeopardize the current engagement with the private creditors.

“Ghana is indeed benefiting from the experiences of countries that have gone for debt restructuring under the common framework”, she said.

She added that comparability of treatments becomes a benchmark for the success of the debts restructuring.

By:Citi Newsroom

The founder and leader of the Movement for Change, Alan Kyerematen, has pledged to abolish several taxes imposed on imports that he said are unnecessary and a huge burden to the trading community.

Mr. Kyerematen made the pledge in an engagement with members of the Ghana Union of Traders Association (GUTA).

He said the abolishment of such taxes and levies would make Ghana the country within the ECOWAS subregion with the lowest tax regime.

Alan and Executives of GUTA.

“Under my presidency, Ghana will have the lowest tax rate regime in ECOWAS,” he said.

Outlining a raft of radical tax measures to realign and reduce the burden of taxes on Ghanaians, especially on imports, Mr. Kyerematen said immediate measures will include consolidating the existing NHIL & GETFund levies at the ports into the calculation of a new VAT rate, and the abolition of the Special Import Levy of 2%, COVID-19 Health Recovery Levy and the Ghana Health Service Disinfection Fee.

He promised that taxes and other charges on the importation of spare parts would be abolished two years into his administration.

Mr. Kyerematen further promised to undertake a comprehensive assessment of the relevance of all other administrative fees, service charges, and levies imposed at the ports will be undertaken.

Hon.Alan Kwadwo Kyerematen

Bemoaning the plethora of taxes that make doing business difficult in Ghana, the President of GUTA, Dr. Obeng, mentioned 22 different taxes apart from VAT, adding up to nearly 65% of the value of imports.

Moreover, over fourteen state agencies operate in the port, as well as various security agencies. This state of affairs drives up the cost of doing business, making businesses move to other ports, and encouraging unethical practices.

 

Recognising the level of stress and difficulties faced by the Ghanaian business owner, which is ultimately transferred to the customer, Mr. Kyerematen stressed the importance of easing the business environment for traders as a means of improving the livelihoods of ordinary Ghanaians.

“Until government creates an enabling environment for private sector-led growth, the transformation that we so desire will continue to elude us,” he said.

In another groundbreaking and innovative approach, Alan Kyerematen intimated that a government under his leadership will shift from the current heavy reliance on indirect taxes to direct taxes.

“I will ensure a recalibration of the existing tax regime structure to optimize revenue mobilization from direct taxes (personal and corporate), and reduce over-reliance on indirect taxes (import duties, levies, and charges) to make the corporate sector more competitive and profitable.”

Mr. Kyerematen based his remarks on the plans set out in his Great Transformational Plan (GTP) which seeks to move beyond mere promises of political party manifestoes to actual plans that can deliver the vision of Ghanaians for a prosperous, united, and peaceful Ghana that provides equal opportunities for all, especially young people, women, and other vulnerable groups.

 

 

By:Isaac Amoah/tntnewspapergh.com

The Chief of Senfi-Adumasa in the Bekwai Municipal of the Ashanti Region, Nana Amankwa Kodom, has cut sod to begin the construction of an ultra-modern market at Senfi in honour of Otumfuo Osei Tutu II.

The project, which is being financed by the chief, is expected to be completed within six months.

Nana Amankwa Kodom breaking the ground for the start for the ultra modern market project

 

Speaking to the media, the chief explained that there was a need for a new market facility to replace the old one which had been in a deplorable state for some years now. He, therefore, called for the support of the Senfi residents to hasten the construction of the new market.

He appealed to the residents of Senfi to support the contractor to ensure that the project is completed on time.

Senfi-Adumasahene said they had tried all possible means for support through written letters but it had proved futile. However, nananom have decided to support the construction of the project.

“I’m constructing this ultra-modern market facility to honour the King of Ashanti, His Royal Majesty Otumfuo Osei Tutu ll, who is celebrating 25 years on the Golden Stool,” he noted.

Nana Kodom lamented that the traders were trading under the scorching sun and whenever it rained, it destroyed all their stocks which necessitated the construction of the new market.

Nana Kodom named Thursday as the market day for Senfi after the completion of the market.

The Assembly Member for the Senfi Electoral Area, Mr. Solomon Fosu, said no trader would be left out after the completion of the market, and it would be shared fairly among the traders. “I’ve charged the contractor to speed up the work to ensure that the project is completed on time,” he added.

According to him, one of their major challenges is power issues since half of the town is in total darkness and the situation needs an immediate attention. He also mentioned that their football pitch needed urgent attention and urged others to come and support him to fence it.

The residents of Senfi-Adumasa commended Nana Amankwa Kodom for the market and other projects for the community.