Business

 

 

 

 

 

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.

 

 

1. We shall continue our modernization of markets agenda when we win the 2024 elections- Mahama to GUTA

2. We will create a stable macro economic environment to ensure predictability and growth for businesses- Mahama to GUTA

3. NDC was lone voice on government’s reckless borrowing spree in 2019- Mahama

4. We shall place a cap on government’s borrowing- Mahama

5. I advised President Akufo Addo not to touch ESLA lest we go back into “DUMSOR”- Mahama

6. We shall introduce stringent reforms to ensure fiscal discipline- Mahama

7. COVID-19 was a disaster but also an opportunity due to huge financial inflows- Mahama

 

1. It takes a visionary leader to set up economic buffers like sinking fund, stabilization fund- Mahama

2. MPS has paid over $200 million in dividends to GPHA; $70 million of which is being spent on the Boankra inland port project- Mahama

3. We shall rationalize fees and charges at the ports and scrap needless ones- Mahama to GUTA

4. The port will work 24/7 including weekends and holidays under my 24-hour economy policy- Mahama to GUTA

5. We shall license special financial institutions to support businesses to clear their goods at the port- Mahama to GUTA

6. We shall stop the collection of illegal and excessive fees by shipping lines- Mahama to GUTA

7. Mahama expresses shock at 22 levies and fees on the clearing of goods at the ports, promises to scrap some

8. We shall expand the tax net to reduce the tax burden on the formal sector and traders- Mahama to GUTA

9. Tell Bawumia to scrap E-levy, other taxes now, not later- Mahama cautions GUTA against Bawumia’s deceptive promises

10. We are going to work together to make your businesses better- Mahama to GUTA

11. Ghana is facing shortfalls in forex due the decline in cocoa output and underinvestments in new oil fields

12. My government will pursue an aggressive agenda of import substitution and self-sufficiency- Mahama to GUTA

13. We shall move away from overemphasis on GDP to GNP (Gross National Product)- Mahama

14. We shall set up an Independent Value for Money office to scrutinize all government procurements, especially single source contracts- Mahama

15. I am not a clearing agent and won’t interfere in the work of anti-corruption agencies- Mahama

16. We shall roll out a National Apprenticeship program to train and equip the youth with the necessary skills and logistics for job creation- Mahama

17. We shall ensure that businesses engaged in production, pay less electricity tariffs than residential users- Mahama to GUTA

18. We shall establish a National Womens’ Bank to provide financial support for businesses owned by women- Mahama

19. Claims that I sold the Tema Port are fabricated lies- Mahama

20. Ignore Bawumia’s mischief on my honey moon comment; we must create before we distribute- Mahama

Source:NCB-HQ